Theresa Villiers backs DUP 'phantom budget' plan

Speaking from London, Theresa Villiers told the BBC's The View that the DUP's phantom budget proposal was "well worth pursuing" as spending decisions must be made

Northern Ireland's secretary of state has given her support to a DUP proposal for a so-called "phantom budget" in the absence of a Stormont deal on welfare.

Theresa Villiers told the BBC's The View it was "well worth pursuing".

The DUP Finance Minister Arlene Foster is to present spending plans to the Executive, on the basis that welfare reform has already been agreed.

The phantom budget will include cuts, but not the £600m cuts the DUP argued is needed if there is no welfare deal.

'Keep working'

The secretary of state told the programme that with or without welfare reform, Northern Ireland Executive ministers were facing other financial pressures on public services and had to make spending decisions.

"These questions in relation to the budget have to be answered... regardless of outcome on welfare reform because there are around £200m of in-year pressures on spending in the Executive which are separate to welfare," Ms Villiers said.

"So I did actually urge all the parties to work on the budget questions. This work has to be done regardless of whether the welfare question is settled, so I would urge parties to keep working on the budget on the basis that Minister Foster is putting it forward."

'Clock is ticking'

While she welcomed the DUP's plan, Ms Villiers said it was a "step forward in some ways but of course, it is not a whole solution".

She warned that time is running out for the parties to reach agreement on welfare payments.

"I want to be very clear - it is crucial that the five parties in the Executive find way to resolve welfare question and of course, I believe it is crucial that Sinn Féin and SDLP live up to the agreement that was made at Stormont House."

Asked if there was a cut-off point for allowing the five parties to reach at deal before Westminster steps in, Ms Villiers said: "We all know the clock is ticking.

"It's clear that if there isn't an agreed workable budget by around the middle of June then almost inevitably the emergency provisions on the budget come into effect for the Northern Ireland Executive by the end of July.

"The impact on frontline services could be felt pretty soon thereafter."

She warned that public services would be "deeply damaged" unless Northern Ireland parties accepted "financial reality" and their own responsibilities.

Theresa Villiers' interview will be broadcast on The View on BBC One Northern Ireland at 22:45 BST on Thursday 4 June.