Deputy first minister rejects 'panto season' claim over budget tensions

Northern Ireland's deputy first minister has dismissed claims of "panto season" over funding pressures.

Emma Little-Pengelly was responding after leaked letters between the finance and education ministers laid bare tensions over Stormont's budget.

It comes as the four-party executive is due to meet this week to discuss the reallocation of money between departments.

The deputy first minister said the funding challenges were a "serious matter, and we will be dealing with it in a serious way".

The letters seen by BBC News NI show Education Minister Paul Givan warned in October his department would "unquestionably overspend" this year without extra funding.

Finance Minister John O'Dowd responded saying any overspend would "directly negatively impact front-line services" and "this damage cannot be overstated".

Givan, of the Democratic Unionist Party (DUP), told the Sinn Féin minister his approach in the correspondence "will make agreement of a budget for next year effectively impossible".

The deputy first minister was asked about the letters by Social Democratic and Labour Party (SDLP) assembly member Matthew O'Toole, leader of the opposition in the Northern Ireland Assembly.

He said "panto season has begun" with the letters and expressed concern over the prospect of the executive agreeing a multi-year budget.

"Budget dysfunction has been going on frankly nearly as long as May McFettridge at the Grand Opera House," he added.

"The difference is that May is entertaining, and unlike this place, she provides value for money."

O'Toole asked the deputy first minister to "guarantee that there will be a multi-year budget and that your party will not block one".

The DUP minister responded: "This is a serious matter, and we will be dealing with it in a serious way.

"The exchange of letters between the finance minister and the education minister outlined very starkly the challenges that we face within our core public services.

"Health and education in particular have made clear throughout this year the pressure that they are under - this is not new."

Little-Pengelly said she was "fully supportive of a multi-year budget" but there were "challenges" to address.

Ministers are set to meet this week to discuss how money will be allocated as part of a Stormont mini-budget, known as a monitoring round.

The process, which happens several times a year, involves a reallocation of unspent funds by Stormont departments and new money flowing from Westminster spending decisions.

It comes amid outstanding public sector pay pressures, with pay deals for healthcare workers, teachers and police staff for this year yet to be resolved.