Budget 2023: DUP demands more money from London, Sinn Fein demands end to DUP boycott

Sir Jeffrey Donaldson said that he agrees the Province’s public sector needs “transformation”, but that the bottom line is not enough cash is coming from the Treasury each year as part of the block grant.

• Northern Ireland's budget broken down: Whose funding is growing and whose is shrinking in 2023/24?

He also repeated an earlier call for pay rises for public sector workers.

Meanwhile, the erstwhile Sinn Fein finance minister Conor Murphy sought to lay much of the blame for the largely-flat budget at the DUP’s feet, calling the party’s ongoing boycott of Stormont “gross negligence”.

Sir Jeffrey said: “The DUP is not going to be brow-beaten by the government. We will stand up for Northern Ireland and get the best deal for the people we represent.

“Whilst we agree with and support the need for transformation of our services to better reflect the needs of our citizens, this will not be the outcome of this flat budget allocation. The Secretary of State knows this to be the case.

"If the Northern Ireland Executive was reformed tomorrow, there is not enough money in the system to fund our public services let alone reform them.

“The costs and impacts of inflation, energy costs, as well as the need to fairly fund wage settlements, are not taken account of in what is being proposed.

"If we do not invest in proper pay awards for our public sector workers, then our ability to deliver public services will be greatly diminished.

"Whether it is an NIO Minister or a local Finance Minister, the problem is the same, there is not enough money from Treasury.

"The Treasury contribution to fund public services in Northern Ireland is going down, rather than rising. As an example, in England up to 2025, spending will increase by 6% but only 3.6% in Northern Ireland...

"The Barnett Formula is not working for Northern Ireland as it does not take account of need.

“If the Secretary of State and the Prime Minister want to see sustainable local decision-making, then much more assistance and support will be needed from His Majesty’s Government alongside a locally agreed modern public services plan that moves Northern Ireland into more stable territory.”

Meanwhile Mr Murphy returned to a common theme: savaging the DUP and the Tories.

“Spending on the economy and education has been cut. Funding for health flatlined. That is before inflation, pay for workers, and growing demands on public services are factored in.”

He said the budget will “cause long-term and irreparable damage to our society”, adding: “It is quite clear that ordinary people are the collateral damage in a political conflict between the British government and the DUP.

"This unadulterated Tory budget is the direct consequence of the absence of the Executive.”