Devolved government in Northern Ireland is failing to deliver for the public and faces a crisis of confidence, MLAs told a Westminster committee.

Matthew O'Toole, leader of the SDLP opposition at Stormont, said the impact of the Executive's inability to make progress is "toxic". He told the Northern Ireland Affairs Committee that people cannot see meaningful improvement from Stormont, which he described as "really pernicious" in a society with a history of challenged governance.

Mr O'Toole highlighted that no budget has been agreed for the current financial year, which means civil servants can only authorise 95% of last year's spending, amounting to an effective 5% cut. He said repeated collapses and dysfunction have caused the public to lose faith in devolution, calling it a tragedy for a society that had invested so much hope in the institutions after the conflict.

He said that while structural reforms are important, a cultural shift in the Executive is also needed, along with leaders who are willing to lead.

Eoin Tennyson, deputy leader of the Alliance Party, criticised the UK government for not taking a more proactive role in making devolution work. He told MPs that the two largest parties are using vetoes at the Executive table to block each other's legislation.

Mr Tennyson said even when the Executive is sitting, there is an inability to deliver progressive change. He cited the blocking of an independent environmental protection agency, despite all parties having signed up to the New Decade New Approach deal, and the use of a Petition of Concern by unionist parties to prevent raising the minimum age of criminal responsibility from 10 to 14.

He warned that without urgent action the institutions face either repeated collapses or a slow erosion of public confidence. Mr Tennyson noted that the Belfast/Good Friday Agreement would not have been secured without an activist Secretary of State and Irish Government in 1998, and called for the same level of engagement now.

The committee is also due to hear from UUP leader Jon Burrows and DUP leader Gavin Robinson on Wednesday.