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Civil servants drawing up possible budget plans

 Secretary of State Karen Bradley may have to strike a budget in the continued absence of an executive. File picture by Peter Byrne, Press Association
Secretary of State Karen Bradley may have to strike a budget in the continued absence of an executive. File picture by Peter Byrne, Press Association Secretary of State Karen Bradley may have to strike a budget in the continued absence of an executive. File picture by Peter Byrne, Press Association

CIVIL servants are drawing up financial plans in case the Secretary of State has to pass a regional budget.

The Department of Finance confirmed last night that the civil service is working with the Northern Ireland Office (NIO) on a "contingency basis".

Head of the Northern Ireland Civil Service, David Sterling, warned several weeks ago that public servants needed clarity on a budget by the beginning of this month.

He said public finances were about to reach a "crunch point".

With the collapse of talks aimed at restoring power-sharing, the north still has no executive ministers who can set a budget for the next financial year.

A Department of Finance spokeswoman said last night: "It will not be possible to set a budget for 2018/19 and beyond without Ministerial decisions.

"Given the urgent need for budget certainty, NICS officials are engaging with counterparts in the Northern Ireland Office on a contingency basis to ensure the Secretary of State is in a position to bring forward a budget should it be necessary for her to do so."

Previous Secretary of State James Brokenshire imposed a 2017/2018 budget in November in the absence of an executive.

And Mrs Bradley is expected to impose a budget amid confusion about the possible return of direct rule.

After the talks collapsed on Wednesday, DUP leader Arlene Foster called for the immediate imposition of direct rule. She said the British government needed to set a regional budget and make policy decisions.

However both Sinn Féin and the SDLP are strongly opposed to rule from Westminster. Sinn Féin's northern leader Michelle O'Neill has said direct rule is "not an option", while SDLP leader Colum Eastwood said the British–Irish Intergovernmental Conference, which forms part of the Good Friday Agreement, should meet.

Taoiseach Leo Varadkar has previously said the Irish government would expect to have a "real and meaningful involvement" in Northern Ireland affairs if efforts to restore devolution failed.