Talks with the European Union to resolve issues over the Northern Ireland Protocol are "constructive", according to the government

The protocol is designed to prevent a hard border between Northern Ireland and the Republic of Ireland, but has led to anger in the unionist community about the division it causes with the rest of the UK.

The DUP has refused to return to Stormont until problems with the agreement are sorted out, leading to a stand-off about forming a devolved executive. As the UK government negotiates with the EU, it continues to progress the NI Protocol Bill through Parliament, which could allow it to make unilateral changes to the arrangement.

Asked to detail the progress in fixing issues with the protocol, Northern Ireland minister Steve Baker told the Commons: "The government is engaging in constructive dialogue with the European Union to find solutions to the problems the protocol is causing.

"We are, of course, also proceeding with the legislation before the House which aims to fix these problems in the event we cannot reach a negotiated solution, but it is the government's preference to reach a negotiated outcome."

DUP MP Sammy Wilson (East Antrim) argued that the protocol must be removed because of the role it gives Europe's highest court in Northern Ireland.

He said: "The Northern Ireland Protocol has resulted in the ripping up of the Belfast Agreement, the principle of consent, and the fall of the assembly. It has also imposed EU law on part of our country and that law will be imposed by the European Court of Justice. "Does the minister accept you can't improve on that, you have got to remove it?"

Mr Heaton-Harris replied: "Actually, I do think there is a negotiated path where you can completely change how we deal with the protocol, which would mean that it deals with the issues of governance, it deals with the issues of trade, and it deals with all the other practical issues that are causing legitimate concerns to the communities he represents."

The NI secretary also told MPs that a government fund to support businesses with cross-border trade issues would cost £340 million by the end of the year, adding he hoped it would not need to be extended due to progress in the negotiations.

Conservative MP Andrew Selous (South West Bedfordshire) told MPs: "The trader support services has helped thousands of businesses in Northern Ireland navigate the way in which goods move under the protocol. How will this very important service be funded over the next year?

Mr Heaton-Harris replied: "By the end of this year we will have spent £340 million helping traders process 2.3 million customs declaration through the traders support service for trade between Great Britain and Northern Ireland, but we very much hope we can find a negotiated solution to the protocol issues which mean we do not have to spend this money in the future."