POLITICIANS in Northern Ireland have been given a grace period of a “short few weeks” to settle their differences and form a power-sharing executive, James Brokenshire, the Secretary of State, has made clear.

With Monday’s 4pm deadline for the Democratic Unionist Party and Sinn Fein to form a new executive having lapsed, the UK Government is facing either calling yet another election or reintroducing direct rule from Whitehall.

Speaking outside Stormont House, Mr Brokenshire made clear there was "no appetite” for another poll. Equally, reintroducing direct rule, which would require emergency legislation, is an unappetising prospect given the politically divisive ramifications of such a controversial move.

The cross-party talks broke down amid recrimination with the two main protagonists blaming each other.

The DUP claimed Sinn Féin was "not in agreement-finding mode" during the talks to save the political institutions while Sinn Féin insisted the DUP did not have "the right attitude".

Without an executive or agreed budget for the upcoming financial year, control of Stormont's finances will be handed to a senior civil servant on Wednesday, albeit subject to tight spending constraints.

Mr Brokenshire said that this was "not sustainable", making clear the final window for negotiations would not be allowed to drift.

"There are a short few weeks in order to resolve matters," he declared.

"The reason I say that is because of the stark issue in relation to public services here in Northern Ireland and the lack of a budget having been set, and, therefore, it is the impact on public services on having an extended period that is very much at the forefront of my mind in terms of the responsibilities that we have as the UK Government to provide that assurance to the public here."

The DUP/Sinn Fein administration collapsed in January amid a bitter row over a botched green energy scheme. The subsequent snap election campaign laid bare a range of other contentious issues dividing the parties.

The Northern Ireland Secretary rejected criticism of the UK Government's handling of the talks to form a new executive and defended the fact Theresa May had not participated in the process. He said the Government had played a "positive and active" role and the Prime Minister had been kept updated throughout.

Mr Brokenshire declined to be drawn on calls for an independent mediator to be appointed to inject fresh impetus into negotiations that some politicians have described as a "shambles" to date.

Under current legislation, the Government is required to call another snap election if a deadline for forming an executive passes.

However, there is some room for manoeuvre as there is no obligation to set a poll date immediately, rather, the law states it should happen within a "reasonable period".

The Secretary of State said there was "an overwhelming desire" among politicians and the public for "strong and stable devolved government".

"We now have a short window of opportunity to resolve outstanding issues and for an executive to be formed," he said.

"Everyone owes it to the people of Northern Ireland to grasp that and provide the political leadership and stability that they want," added Mr Brokenshire, who will make a Commons statement on the matter tomorrow.

In the fall-out, DUP leader Arlene Foster claimed Sinn Fein's "inflexible" approach to negotiations was to blame and stressed she did not believe another election would solve anything.

"We wonder whether Sinn Fein were serious about reaching agreement at this time," said the former first minister.

"We are just disappointed that Sinn Fein did not come to the talks in the same spirit as we came to the talks," she added.

But Michelle O’Neill, the Sinn Fein leader, claimed the DUP had failed to live up to previous agreements and was standing in the way of progressive policies.

"We are standing firm; previous agreements need to be implemented," declared Ms O’Neill.

"We came at the negotiations with the right attitude, wanting to make the institutions work, wanting to deliver for all citizens. Unfortunately, the DUP maintained their position in relation to blocking equality, delivery of equality for citizens; that was the problem," she added.