NI parties' reaction as government unveils offer

1. Stormont's five largest parties have held talks with NI Secretary Chris Heaton-Harris at Hillsborough Castle
2. It comes as the UK government announces a £2.5bn package to support the return of power-sharing government
3. It includes a lump sum to settle public sector pay claims and a new "needs-based" funding formula for public services
4. The Democratic Unionist Party (DUP) leader Sir Jeffrey Donaldson said it will study the government's offer but there is still "some way to go"
5. It is is boycotting power-sharing government in NI in protest at post-Brexit trade rules
6. Sinn Féin, NI's largest nationalist party, said it's decision time for the DUP, with Wednesday the "cut-off point", while fellow nationalists the SDLP said the money on offer is not enough
7. Alliance said it's essential parties get the deal right while the UUP welcomed the offer but said it cannot see a deal by Christmas
8. Earlier public sector workers protested outside the gates over pay issues, greeting parties with chants as they arrived

Bye for now

Matt Fox

BBC News NI

That concludes our live page for today but the saga of sorting out Stormont looks set to continue with further talks planned for Tuesday and Wednesday.

Today's coverage was brought to you by myself, Eimear Flanagan and David Wilson, and was edited by Ciarán McCauley.

For another look at today’s events, BBC Newsline is live on BBC One Northern Ireland and BBC iPlayer at 6.30pm.

Thanks for joining us.

BBC

• BBC Newsline - watch live

BBC

Where we're at after today's Hillsborough talks

Getty Images

It’s been a busy afternoon at Hillsborough Castle as representatives from Stormont’s five largest political parties gathered for roundtable talks with Northern Ireland Secretary Chris Heaton-Harris - their first sit down since July.

Here’s what’s went down:

• The UK government has proposed a financial package worth £2.5bn to support the return of a Stormont executive
• It would include a lump sum to settle public sector pay claims and a new "needs-based" funding formula for public services
• But the offer requires the return of power sharing, which the DUP has been boycotting for the last 22 months
• Public sector workers protested outside the gates over pay issues and urged the politicians to “get back to work”
• Sinn Féin, Northern Ireland’s largest party, says the financial package “doesn’t even touch the surface of what is required” - the party’s vice-president Michelle O’Neill says the talks need to be time-limited and says Wednesday should be a “cut-off point”
• DUP leader Jeffrey Donaldson agrees the financial package “doesn’t go far enough” but doesn’t agree that Wednesday should be seen as a deadline
• Talks are set to continue tomorrow and Wednesday

Sir Jeffrey could claim his 'Trimble moment'

Elaine McGee

BBC News NI

With political talks set to continue tomorrow and Wednesday, someone who knows plenty on unionism's history with deals has offered her view.

Baroness Trimble is the widow of former UUP leader Lord Trimble, who was instrumental in negotiations around the Good Friday Agreement - the deal which ended Northern Ireland's Troubles.

Lady Trimble, speaking at an event in Derry's Guildhall marking the 25th anniversary of her husband and John Hume winning the Nobel Peace Prize, said now Sir Jeffrey Donaldson may face his "Trimble moment".

Getty Images

While it may be "different times and different circumstances", Sir Jeffrey still faces a decision on restoring Stormont, she added.

"If there is no decision this side of Christmas, then we are going into [Westminster] pre-election and people's minds will be focused there and not Northern Ireland."

She said this week's talks are an opportunity, "not a last-chance saloon".

"I think if [Sir Jeffrey] comes up with an agreement... I think he can claim it as a Trimble moment."

Analysis: Breaking down the government's Stormont offer

John Campbell

BBC News NI economics and business editor

Let's take a closer look at this government package - first of all of the £2.5bn, the biggest chunk, just more than £1bn, is for a so-called stabilisation fund over four years to get public services back on an even keel.

The next biggest chunk of £785m that would come about due to a new funding formula for Northern Ireland, similar to what exists in Wales. It involves putting a mechanism in place to make sure spending per person on public services doesn't fall below a certain level.

So the way it works in Wales, they have a guarantee that for every £100 per head spent on public services in England, they’ll get £115.

Getty Images

The government says it will accept a funding floor of £124 per head which is in line with a calculation made by the Independent NI Fiscal Council.

That would leave about £580 to £590m to settle public sector pay claims, which have been the disputes driving many workers to strike. And then, outside of that £2.5bn, there’s another £600m that would largely be reallocating money the UK government has already announced for Northern Ireland, which could be some of the Levelling Up money that was stopped.

Now it does come with strings attached - a rates increase of at least 15%; the publication of a revenue-raising plan by next spring; and the formation of a public services transformation board to push through reforms.

'Playing politics' and a 'political agenda' - NI's smaller parties react

PA Media

Today's talks involved Stormont's five largest parties, so the smaller parties with members in the assembly - People Before Profit and Traditional Unionist Voice (TUV) - were not present. But they've also been reacting to what's emerged so far.

TUV leader Jim Allister has described the Westminster offer as "by any definition, a bribe".

He says if the UK government recognises considerable financial need in Northern Ireland, an offer should not be dependant on the DUP's return to power sharing.

Allister adds that Westminster needs to step up and govern and "not play politics with deserving need".

“If money, even £3bn in smoke and mirrors, to abandon principle and become (Northern Ireland) protocol implementers buys off some, it will not impact those whose unionism is rooted in principle, not pounds."

Pacemaker

Meanwhile People Before Profit assembly member Gerry Carroll says the offer "shows Tories can find money for public services when it suits their political agenda".

Although the package is significant, he says, it will "still not plug the hole left by years of austerity".

"With or without an executive, people across the north will still have to fight for more investment in our communities."

Here's what's happened so far

PA Media

Public sector workers protested outside the talks at Hillsborough Castle

It’s been an eventful day of talks at Hillsborough Castle- here’s a round-up of what’s emerged following discussions between the UK government and NI’s five biggest political parties.

• The UK government is offering a financial package it says amounts to £2.5bn to get Stormont up and running again.
• The package would settle public pay disputes, and set a new funding formula for public services here. Earlier on Monday public sector workers protested outside the gates over pay issues.
• Sinn Féin, Northern Ireland’s largest party, says the financial package “doesn’t even touch the surface of what is required”. The party’s vice-president Michelle O’Neill says the talks need to be time-limited and says Wednesday should be a “cut-off point”.
• DUP leader Jeffrey Donaldson agrees the financial package “doesn’t go far enough” but doesn’t agree that Wednesday should be seen as a deadline.
• UUP leader Doug Beattie says the financial package gives the executive "an opportunity to get up with a running start". It would allow pay deals to be done, he says, but adds it may not be enough to get Stormont restored before Christmas.
• SDLP leader Colum Eastwood says more work was needed on the financial package. The majority of parties, he says, stressed in the talks that a restored Stormont is needed urgently.
• The Alliance Party say the talks were “a useful conversation” but party leader Naomi Long says more than a “short-term fix is needed for NI’s public finances". And she adds that providing financial stability “isn’t a barrier to the restoration of devolution”.

'Not a snowball's chance' of it being wrapped for Christmas

Jayne McCormack

BBC News NI political correspondent

The government may believe it’s offered the parties an early Christmas present with the promise of lots of cash - but it’s clear the parties have a much bigger wish list.

Alliance leader Naomi Long described it as London trying to “dangle baubles before Christmas”, in the hopes of turning up the heat on the DUP to bring Stormont out of cold storage.

While Sinn Féin wants these discussions done within the next two days the DUP has suggested that the process could run much longer.

The party leader Sir Jeffrey Donaldson still has another deal to finalise with the government and crucially, sell that to his party members and unionist grassroots.

When it comes to financial packages in Northern Ireland, memories run long and the parties still point out that the last agreement they reached in 2020 saw the promise of more money than was delivered.

So while we’re now officially in another Christmas talks process, in the view of one source who was in the room today there’s not a “snowball’s chance” of this being wrapped up before the new year.

DUP 'not working to any deadline'

Just a little bit more from Sir Jeffrey's comments earlier - while Sinn Féin said Wednesday was the "cut-off point" for the DUP and government to agree a deal, the DUP says it was not working towards any deadline

“I don’t see Wednesday as a deadline and the secretary of state didn’t characterise Wednesday as a deadline,” Sir Jeffrey says.

“He simply said discussions taking place this week at Hillsborough will conclude on Wednesday and he will then reflect on what the Northern Ireland parties have said."

Sir Jeffrey said the process cannot be “corralled into a few days”.

We'll see what emerges but it could point towards some parties pushing for movement in the next two days.

It's not about dangling baubles, says Alliance

BBC

And now we hear from the final party, Alliance - leader Naomi Long says the parties had a “useful conversation” with the Northern Ireland Secretary, in terms of the financial situation Northern Ireland finds itself in.

She adds that although her party was “heartened” by some of the financial offers put forward by Westminster, it's “not sufficient” to address the issues.

“This is not about a short-term fix, it is not about dangling baubles at us before Christmas and getting everybody to rush back,” she says.

She says financial stability should be a priority, regardless of the promise of a restored executive.

“It isn’t a barrier to restoration of devolution.”

She says it is essential the parties get this deal right as it will have “generational impact”.

Long also says she doesn't want Monday’s talks to become an annual event.

“We need our institutions restored as soon as possible and reformed so they don’t collapse again. That’s our bottom line and we’ve made that very clear in the room today.”

UUP leader positive on offer but can't see Christmas Stormont return

BBC

UUP leader Doug Beattie says the financial package gives the executive "an opportunity to get up with a running start".

"It allows us to do the pay deal that needs to be done," he says.

"Initially it's quite attractive, but in the long term we're not quite sure – we have to do a little bit more looking through it and negotiating around it."

Mr Beattie says the figures are "eyewatering" but the focus should be on long-term sustainability.

"We can do the pay deals for our nurses, our teachers, our police now but we don’t know if we’ll be able to do it in 24 or 48 months’ time," he says.

Mr Beattie says he's positive on the pay offer and that he doesn't see it as a bribe but adds he can't see it leading to devolution being back before Christmas.

"I just don’t think we have the time. But I could be wrong, I’ve clearly been wrong, but I cant see it at this moment in time."

Breaking£2.5bn on offer for return of Stormont - Westminster

John Campbell

BBC News NI economics and business editor

Getty Images

The UK government says it's financial package to support the return of power sharing is worth £2.5bn.

But it's conditional on an incoming Northern Ireland Executive committing to raising rates by at least 15%.

Rates are the property taxes paid by households and businesses.

The package includes a lump sum to settle public sector pay claims and a new "needs-based" funding formula for public services, with more details on how it would work continuing to emerge.

Read more on this story

Still some way to go - Sir Jeffrey Donaldson

The DUP feels the government's financial offer isn't enough to restore devolution, its leader Sir Jeffrey Donaldson says.

“We will study what the government have said,” Sir Jeffrey tells reporters.

“Our initial reaction is that it falls short of what is required to enable our public services to be placed on a sustainable basis in terms of the funding of those public services."

BBC

The DUP leader says there is “some way to go” on discussions both about finances and on post-Brexit trade rules for Northern Ireland.

He says the DUP are committed “to working each day to make the progress required” that will allow the restoration of devolution.

"I don't see Wednesday as a deadline," Sir Jeffrey adds.

"Does [the financial package] go far enough? No. Is more work required? Yes it is."

Wednesday should be deadline for possible DUP deal - Sinn Féin

BBC

Sinn Féin’s vice-president Michelle O’Neill says it's decision time for the UK government and that Wednesday should be the "cut-off point" for its talks with the DUP.

"For far too long the DUP have been off in a huddle with the government,” she says.

“This needs to be time-limited, this has gone on too long," she adds.

O'Neill says she's wrote to Chris Heaton-Harris asking the discussions come to a close.

"They need to bring an end to negotiations with the DUP, bring the other parties in and have that conversation," she says.

“We're now going to have that conversation over the next 24 or 48 hours

“Wednesday is the cut-off point.”

She says the financial package offered today “doesn’t even touch the surface of what is required” for properly funded public services and all parties should fight the Treasury on behalf of the people of Northern Ireland.

Political reaction to cash offer coming in - watch live

The DUP are now at the mic following Sinn Féin a little while ago, with the UUP and Alliance still to come - you can watch live by pressing the play button at the top of this page.

'We've seen cash amount - and it's not enough' - SDLP

BBC

Colum Eastwood (left) said there was more work to do

The SDLP are first out in front of the cameras after the talks - and after that breaking news of Westminster's cash package offer for a restored power-sharing government.

But leader Colum Eastwood is staying tight-lipped about how much extra money is on offer, although he does say it's not enough to fill the "black hole" in Northern Ireland's finances.

"There have been figures shared with us," he told reporters outside Hillsborough Castle.

"And I think it's important that parties are able to discuss and negotiate with the British government - hopefully get those figures up a bit, because we're clearly not there yet."

On the financial package being offered, he said: “In every discussion I have ever been in with the British government about money, everyone says that it is not enough."

Although Mr Eastwood said there was "more work to do" on the financial package, he added: "Most of the parties were clear that we have to get Stormont back up and running immediately."

BreakingGovernment offers cash package for Stormont return

John Campbell

BBC News NI economics and business editor

The UK government is offering a significant financial package to support the return of a power-sharing government in Northern Ireland.

It includes a lump sum to settle public sector pay claims and a new "needs-based" funding formula for public services.

It would also allow Stormont overspends from last year and this year to be repaid over five years.

It is understood Westminster is framing the package as dependent on the return of devolution.

The UK government briefed Stormont's main parties on the headline offer, with further technical briefings to follow.

Read more here.

Talks come to an end - watch reaction live

We're hearing the talks have ended, about 90 minutes or so after they started - we're expecting the parties to speak to the media as they emerge.

You can watch the parties' reaction live as they come out of Hillsborough Castle by pressing the play button at the top of this page.

Smaller parties urge DUP's power-sharing return

The principles of power sharing in Northern Ireland mean there cannot be a government without the inclusion of its biggest nationalist party and biggest unionist party.

Smaller parties have regularly vented their frustration at the ongoing DUP standoff.

Last week, the Alliance Party's chief whip Andrew Muir tweeted: "People's patience has run out.

"Public services are in a state of crisis, and there is a real need to have ministers at the helm of a restored, reformed and fairly funded executive."

BBC

Doug Beattie spoke to protestors on his way into Hillsborough Castle

UUP leader Doug Beattie said it had been "too long" since the last five-party meeting and this had created an "unhelpful atmosphere".

In a statement he added that he didn't care who takes credit for any financial package, provided it can be directed to where it is needed "at pace and with purpose".

Earlier, SDLP leader Colum Eastwood called on the DUP leader to show “political courage” and return to power sharing.

“I genuinely do believe if this goes beyond Christmas then it [Stormont] won’t come back anytime soon," he said.

Mr Eastwood added it would be a good thing if Monday's talks were "part of that choreography" to get the DUP back into government.

But he also said "we shouldn’t be cheerleading this because people are frankly bored".

In pictures: Protestors picket Hillsborough Castle talks

We can't see what's happening inside Hillsborough Castle right now as the talks are taking place behind closed doors.

But here are some pictures of what's been happening outside the gates of the County Down castle as public sector workers protest over their pay levels.

David Young/PA Wire

Health workers protested outside the talks at Hillsborough Castle

David Young/PA Wire

They urged assembly members to "take your seats" and return to Stormont

David Young/PA Wire

The protestors held a banner to lobby NI Secretary Chris Heaton-Harris

Who gets a seat at today's talks table?

Getty Images

Only the five biggest parties in Northern Ireland have been invited to the talks at Hillsborough Castle on Friday afternoon.

But between them they hold more than 95% of the 90 seats in Stormont.

The most recent elections to the Northern Ireland Assembly took place in May 2022.

Its current membership now looks like this:

• Sinn Féin - 27 seats
• DUP - 25 seats
• Alliance - 17 seats
• UUP - 9 seats
• SDLP - 8 seats
• Independents - 2 seats
• People Before Profit - 1 seat
• Traditional Unionist Voice - 1 seat