​Savings within the health service in Northern Ireland mean it is currently operating at the limit of what can be achieved

Health Minister Mike Nesbitt has further warned that next year's budget will be “severely challenging” for public services in the province.

The budget assessment produced by his department said that the health service “will not have all the resources to do everything we want to do, or indeed everything that needs to be done”.

Since taking up the health portfolio in May, Mr Nesbitt has consistently warned about acute financial pressures facing health.

Last week he refused to support an executive funding reallocation exercise, insisting the £350 million given to his department was not enough to cover recommended pay rises for healthcare staff.

Despite receiving 57% of around £700 million shared among departments in the monitoring round, the minister insisted he is still £100 million short of the money he needs to make pay awards of at least 5.5% to all health staff.

Finance Minister Caoimhe Archibald has warned that, despite the funding boost from the chancellor's Budget, the devolved administration is still overcommitted by around £180 million across all departments this year.

She has made clear that ministers need to find more savings and balance the books.

Mr Nesbitt delivered a written ministerial statement and an updated budget assessment to the assembly yesterday.

He said that financial pressures on health services “remain significant”.

Mr Nesbitt added: “As the assembly will be aware, my department is still short of being able to make full 2024/25 pay settlements in line with those in England and Wales.

“I am continuing to actively seek a viable solution and I have emphasised that a concerted executive-wide approach is needed to resolve all NI public sector pay issues for 2024/25.

“A joined up executive approach to public finances will clearly be essential next year too, given the indications that the 2025/26 budget position will also be severely challenging.”