Stormont has missed the deadline to agree a budget, triggering contingency arrangements that limit departmental spending to 95 per cent of last year's levels from Saturday.

The automatic cap comes into force at the end of July under public finance laws if no budget act is in place. In practice, full cuts are not expected because the Northern Ireland Secretary can step in and pass a budget through Westminster, as happened in 2017 and 2022.

Justice Minister Naomi Long said the draft budget allocations did nothing to close a historic funding gap in her department. She warned that the Department of Justice had exhausted all reasonable savings measures and that if the draft budget was implemented without extra money for unavoidable pressures, the justice system would slow further and its ability to preserve life and protect the public would be compromised.

Alliance leader Ms Long said a modest increase over three years had not corrected chronic underfunding, which had blocked reform and prevented efficiencies. The department's share of the overall budget has fallen while demand has risen sharply, she added.

The Executive has operated with contingency budgets since April after failing to agree either a multi-year or single-year budget. Executive ministers are pressing the Treasury for additional funding, arguing that Northern Ireland is underfunded compared to Scotland and Wales.

The independent Northern Ireland Fiscal Council supported that position, finding that Scotland and Wales are funded above their assessed need while Northern Ireland is at or slightly below. It said Stormont could mathematically receive an extra £1 billion to £3.5 billion a year if funded like the other devolved administrations, but warned that was not the most likely outcome.

Finance Minister John O'Dowd said there was a real commitment around the Executive table to resolve the budget. He called on the new Labour administration to properly fund the Executive.

The new Northern Ireland Secretary Chris Bryant is meeting the main Stormont parties at Hillsborough Castle on Friday during his first official visit since his appointment. The lack of an agreed budget and legacy issues are expected to top the agenda.

SDLP opposition leader Matthew O'Toole said the UK government had a collective responsibility with the Executive to secure a fair financial settlement, but that refusing to set a budget was not the right tactic.