The Northern Ireland Assembly returned from recess to sharp exchanges over the Executive's failure to agree a Budget, with the SDLP accusing Sinn Féin and the DUP of refusing to govern. The debate came as Michelle O'Neill joined the First Ministers of Scotland and Wales in Cardiff for a summit on the break-up of the United Kingdom, drawing condemnation from unionist parties and a defence from nationalists.

Opening an Opposition debate, SDLP MLA Matthew O'Toole said it was a 'profound failure' that the Executive had not set a Budget six months into the financial year. He rejected arguments that the absence of a Budget was a legitimate negotiating strategy with the UK Government, stating that 'irresponsibility here breeds cynicism there'. O'Toole acknowledged the Executive's case for better funding but said refusing to allocate existing resources was harming public services.

Sinn Féin's Deirdre Hargey moved an amendment arguing that the core issue was underfunding from Westminster, citing Northern Ireland Fiscal Council analysis that equitable funding with Scotland and Wales would mean £1 billion to £3.5 billion more annually. She said the British Government 'choose to fund war over public services' and called for a fair funding settlement. The DUP indicated support for the Sinn Féin amendment.

Alliance's Eóin Tennyson proposed an amendment acknowledging both the funding inequity and the Executive's own failures on reform and waste. He said agreeing the draft Budget without additional funding would have meant drastic cuts, including effectively defunding the Prison Service, and stressed the need for more fiscal devolution and institutional reform.

DUP MLA Brian Kingston criticised the SDLP for wanting the Executive to agree a Budget based on an inadequate block grant, saying that would require 'savage cuts'. He claimed that holding firm had already resulted in Treasury offering an additional £1.5 billion over three years. Ulster Unionist MLA Robbie Butler said the Executive lacked credibility due to waste and failure to transform services, and criticised O'Neill for being in Cardiff 'on a party political stunt'.

Earlier, a Matter of the Day on the Cardiff summit saw DUP deputy First Minister Emma Little-Pengelly insist O'Neill was not attending as First Minister and had no authority to sign anything on behalf of Northern Ireland. She said the summit was a 'wreckers' charter' and pledged never to allow the First Minister role to be used to push for Irish unity. Sinn Féin's Pat Sheehan said the meeting of nationalist First Ministers was historic and showed that 'a referendum on Irish unity is not something to fear but something for which to prepare'.

Alliance's Matthew Tennyson criticised the DUP for 'manufactured grievance' and said the public were 'scundered' by the politics of distraction. SDLP leader Matthew O'Toole pointed out the DUP's history of engagement with hard-right parties and said its reaction might inadvertently boost interest in a new Ireland. People Before Profit's Gerry Carroll welcomed the summit, saying the Union had failed working-class people, while UUP's Robbie Butler described it as a 'charade and a circus'.

In questions, Economy Minister Caoimhe Archibald faced scrutiny over grid capacity, university job losses, and the stalled 'Good Jobs' Bill. She said grid investment was a priority and insisted she had a good relationship with business, rejecting claims of a 'spat'. On Ulster University redundancies, she said it was too early to assess impact but urged engagement with unions.

Education Minister Paul Givan was questioned about school transport failures, with parents given only days' notice of route cancellations. He said the handling by the Education Authority 'fell well short' and promised a review. He also defended guidance on mobile phone pouches, saying no funding was being provided for them and that schools had flexibility.

Members' statements highlighted concerns including the closure of a rural school kitchen in Donagh, neurology service reform, policing morale, women's health, and allergies in schools. The Assembly also extended its sitting until 9pm to allow further debate.