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DUP to present budget as if welfare agreed, says Robinson Stormont situation 'grim' says Theresa Villiers
(35 minutes later)
Peter Robinson has said the DUP will present a budget on the basis that the welfare reform element of the Stormont House Agreement has been implemented. Northern Ireland Secretary Theresa Villiers has said the situation at Stormont "looks increasingly grim", after talks broke up without agreement.
The first minister said it would be up to the other executive parties to decide if they accept it. Ms Villiers and Irish Minister for Foreign Affairs Charlie Flanagan held talks with the five Northern Ireland Executive parties at Stormont.
The DUP leader said the parties have come "to the end of the road". The DUP proposed a budget as if welfare changes had already been implemented.
The Stormont House Agreement was struck in December between the parties and the two governments. It is facing collapse over a failure to agree welfare reform. Sinn Féin said the British government had shown the least intent in reaching any resolution.
DUP sources said that if the budget proceeds without the financial situation envisaged by the Stormont House Agreement underpinning it, either the Treasury would have to intervene or Secretary of State Theresa Villiers would have to push welfare reform through via Westminster legislation. Back in December, the Stormont House Agreement was struck between the parties and the two governments. It is facing collapse over a failure to agree welfare reform.
After Tuesday's talks broke up, Ms Villiers said: "We now face the real prospect of emergency budget provisions coming into operation by the end of July with a negative impact on frontline public services.
"Implementation of the Stormont House Agreement is the only way to get things back on track. The government is doing all it can to achieve this.
"The question is whether Northern Ireland's leaders are able to find a way to deliver on their side of the deal."
'Semi-fictional budget'
Stormont Finance Minister Arlene Foster of the DUP is to propose a new budget without the cuts of £600m that she had argued were needed if there was no deal on welfare reform.
DUP sources said that if the budget proceeds without the financial situation envisaged by the Stormont House Agreement underpinning it, either the Treasury would have to intervene or the Northern Ireland secretary would have to push welfare reform through via Westminster legislation.
Stormont sources told the BBC a "semi-fictional" budget could buy a bit more time for departments to continue in operation.Stormont sources told the BBC a "semi-fictional" budget could buy a bit more time for departments to continue in operation.
Mr Robinson was speaking ahead of talks involving the five Northern Ireland executive parties along with Ms Villiers and Irish minister for foreign affairs Charlie Flanagan. Speaking ahead of the talks, DUP leader Peter Robinson said it would be up to the other executive parties to decide if they wanted to accept his party's proposal.
Opposition The first minister said the parties had come "to the end of the road".
Sinn Féin's Conor Murphy said signs of political will for a resolution were "scarce". 'Opposition'
During a break from the talks, Sinn Féin's Conor Murphy said signs of political will for a resolution were "scarce".
"The people who have shown least intent in terms of approaching this with any sense of trying to bring a resolution are the British government, who are largely responsible for the crisis we find ourselves in," Mr Murphy said."The people who have shown least intent in terms of approaching this with any sense of trying to bring a resolution are the British government, who are largely responsible for the crisis we find ourselves in," Mr Murphy said.
"There is a signal from the Treasury that the budget we had largely agreed, the 2015-16 budget, is going to be raided again. The Treasury have signalled they want in-year cuts.""There is a signal from the Treasury that the budget we had largely agreed, the 2015-16 budget, is going to be raided again. The Treasury have signalled they want in-year cuts."
He added that the British government "are under no illusion as to our opposition" to any suggestion that they could take back welfare powers.He added that the British government "are under no illusion as to our opposition" to any suggestion that they could take back welfare powers.
The talks at Stormont House began at about 16:00 BST. Last week, the Welfare Reform Bill has failed to pass at Stormont when Sinn Féin and the SDLP made a petition of concern, a blocking mechanism that meant it did not get the required cross-community support.
Earlier on Tuesday, Ms Villiers warned political leaders to choose between the Stormont House Agreement or a path that "threatens to wreak havoc".
She said that path could damage public services and undermine devolution.
She was speaking ahead of talks at Stormont on Tuesday between Northern Ireland's executive parties and the British and Irish governments.
It follows the defeat of the Welfare Reform Bill last week.
Writing in the Irish News, Ms Villiers said the real threat to schools and hospitals were those who believe they can go on spending money without regard to the consequences.
She did not name Sinn Féin, but the party appeared to be her target.
In March, Sinn Féin dramatically withdrew its support for the Stormont House Agreement.In March, Sinn Féin dramatically withdrew its support for the Stormont House Agreement.