Hillsborough Castle talks finish without a deal - as DUP say any trade deal will be judged against its seven tests

The parties will meet again on Monday and separate discussions will continue in the coming days.

Earlier in Westminster, Rishi Sunak said the government was prepared to legislate in relation to the UK Internal Market Act.

He made the announcement in response to a question from Sir Jeffrey Donaldson. It has given a further indication of the territory for any deal between the government and DUP on the Irish Sea border.

Speaking after the Hillsborough talks concluded, Sir Jeffrey said there was a broad level of consensus between the parties on a financial agreement. He also welcomed the “clarity” the Prime Minister gave on the UK internal market.

"It is about restoring Northern Ireland’s place in the UK and its internal market. We’ve always said – right back to our Assembly manifesto in 2022 – that this was for us the key issue. It is the issue from which our seven tests flow”, he said.

The DUP leader wouldn’t be drawn on a timescale for a deal. He said: “We continue to engage with the government. We have not completed this process yet in terms of our discussions about the Protocol. About the harm that the Protocol has done – about what the solutions look like. And in parallel with that we will continue to engage with the government on matters related to the budget – to the funding of our public services”.

He said any outcome would be judged against the party’s seven tests.

The Ulster Unionist leader said all the parties were of a similar view about what needs to be done to get a deal across the line.

Speaking as the all-party talks concluded, Mr Beattie said: “The disappointing part was there were no answers given to the questions that we’ve asked”.

He said the talks are focused on finance and have touched very little on the restoration of the Executive, adding: “there is momentum but unlikely to be a direct agreement on the financial package - but instead more work to be done. I am of the belief these talks should continue until that is concluded or momentum may be lost.

“Sir Jeffrey Donaldson’s question to the PM is well rehearsed and takes the same format as has previously been asked. It is clear there is going to be legislation to future proof NI’s place in the UK internal market. We have said this many times. Now it’s a case of getting it done”.

The Secretary of State said discussions would continue – and said he wanted clarity from the parties on how they intend to reform public services.

Chris Heaton-Harris said: “I would like to thank the parties for their thorough and constructive engagement over the last three days.

“The Government has outlined a fair and generous package which could assist a returning Executive to stabilise its finances and protect public services. Over the course of our discussions, a number of points have been raised which require further clarification, including the need for firmer proposals from the parties for how a restored executive plans to deliver the transformation of public services.

“We will be continuing our dialogue with the parties on these issues over the coming days, with the single focus of seeing the return of a locally elected and accountable devolved government.”

Speaking to the media before the final round of talks on Wednesday evening, Sinn Fein president Mary Lou McDonald said there had been “productive exchanges”.

"We’re now at a decision making point for the Treasury in terms of money – and for the DUP in terms of power-sharing”, she said.

"We have to ensure that the institutions are properly funded, that we can deliver fair pay for public sector workers – that we can finance public services to deliver for people”. She added: “We are now at the moment of truth, the moment of decision and we are very very determined that we have a government that can deliver for every citizen”.

The SDLP – who would form the official opposition in a restored Stormont – withdrew from the process earlier in the day. The party’s leader Colum Eastwood said: “The Executive should be restored without delay, we need an immediate plan to rescue public services and deal with the waiting list crisis and public sector workers forced out on strike should be offered a fair pay settlement now.

“No political leader can honestly say to people waiting for hospital treatment or to nurses and teachers demanding a fair wage that they have to keep waiting. It is now up to the Executive parties to close the deal with the British Government and prepare to restore power sharing.

“The SDLP will form an official Opposition to the new Executive. It will be our job to challenge and change the old Stormont politics. It’s right therefore that we are now withdrawing from the Hillsborough process to give the Executive parties the space they need to do the deal. People have waited long enough."