New financial package on offer for Stormont - with no cut-off date - but revenue raising is part of the deal

However, it also recommended revenue raising measures as part of its proposals for a ‘financially stable’ Stormont.

The £2.5 billion offer on the table from the government to the parties at Hillsborough Castle included new funding to cover public sector pay rises which have been held back during the period Stormont wasn’t active.

It also included a so-called ‘fiscal floor’. This is a new way of funding the Executive. Currently, it gets its block grant under the Barnett formula – which gives Northern Ireland a percentage of money spent in England by the government. The fiscal floor would – according to Stormont parties – better address spending needs in Northern Ireland.

A ‘stabilisation fund’ is also on offer – to address additional costs incurred by the political instability and lack of government in recent years. Sinn Fein collapsed the institutions for three years over the RHI scandal – and refused to return until they had secured an Irish language act. The DUP’s current boycott of the institutions over the Irish Sea border is approaching two years.

The UK government is also offering to redirect £600m it had planned to spend in Northern Ireland to a future Executive. They are recommending that it is used to transform public services – but that decision will ultimately be down to a restored Stormont.

Stormont would also have five years instead of two to repay its overspend.

But the Executive would also be expected to take tough decisions about how it manages its budget – including revenue raising measures.

Discussions will continue with the parties over the next few days on the technical aspects of the offer.