The secretary of state has said he has instructed officials to consider “contingency plans” around a budget for Northern Ireland, in the ongoing absence of agreement from the executive on a funding offer.

Last week, Sir Chris Bryant said the deal of £1.5bn over three years was the “final offer” and had given parties a deadline of Thursday.

Stormont Finance Minister John O’Dowd and Ulster Unionist Party (UUP) leader Jon Burrows had asked the government to push back the deadline, in light of political uncertainty over the Drumcree dispute.

In a letter seen by BBC News NI, Sir Chris said he appreciated the effect recent events have had on executive parties.

But he went on to say: “However, the time is already long past when the executive should have agreed a budget for this financial year.

“I cannot therefore countenance further delays and have instructed my officials to consider contingency plans”.

The Stormont Executive had previously said the government’s offer did not go far enough to allow them to balance their budget for this year, with pressures estimated at £1.6bn.

If the executive cannot set a budget it would fall to the secretary of state to do it from Westminster, but last week he said he did not want things to get to that stage.

In his letter he said he wanted to continue working with the executive and urged them to get back to him with suggestions on the budget “as soon as possible”.

He concluded by saying he hoped they would understand he has to “prepare for all eventualities”.

Last week, Prime Minister Andy Burnham urged the parties to be “realistic” about the offer and asked them to accept it.

A Department of Finance spokesperson said the minister “has requested an extension” to the deadline for responding to Sir Chris’s offer “given the significance of the issues involved”.

“Minister O’Dowd remains committed to engaging with the Secretary of State to secure a fair and sustainable outcome for citizens and public services here.”