The UK Government has announced it will provide £2bn in funding for the Strormont Executive.

It comes after the parties agreed a deal to restore the power-sharing institutions after a three-year absence.

Secretary of State Julian Smith said the money will help transform public services in Northern Ireland, including ending the nurses’ pay dispute.

He said: "This funding provides certainty to the Executive and ensures much-needed reforms across health, education and justice can be delivered."

The Government outlined the contents of the financial package.

They said it includes a £1bn Barnett-based investment guarantee which will include significant new funding to turbocharge infrastructure investment.

It said: "This guarantee will apply in all circumstances, and allow the Executive to plan new investment over a five year period."

The Government added that there will be a "rapid injection of £550m" to put the Executive’s finances on a sustainable footing, including £200m to resolve the nurses’ pay dispute immediately and deliver pay parity over the next two years.

It said it will ring-fence £60m of capital and resource funding to deliver a Northern Ireland Graduate Entry Medical School in Londonderry.

The Government also plans to provide £50m over two years to support the roll-out of ultra-low emission public transport.

New Decade, New Approach is about putting Northern Ireland’s Assembly on a sustainable footing.

Secretary of State Julian Smith

It will provide around £245m to support the transformation of public services, including transformation across health, education and justice.

And it pledged £140m to address "Northern Ireland’s unique circumstances".

In a statement on Wednesday evening, a spokesperson continued: "The deal includes strict financial conditions such as the establishment of a new independent Fiscal Council.

"But it does not include any conditions about the raising of revenue by the Executive - that will be a matter for the Executive to decide on if it wants to release extra funds."

Finance Minister Conor Murphy described the financial package as "woefully inadequate".

He said: "The parties are working together to deliver quality public services for our people.

"This act of bad faith makes our job much more difficult.

“As finance minister I cannot and will not accept this and will be taking this up with the British Government.”

Earlier, the First and deputy First Minister wrote to the Prime Minister over the "blockage" of financial commitments underpinning power-sharing.

Arlene Foster and Michelle O’Neill have told Boris Johnson the financial proposal around the deal to restore Stormont is not adequate.

Mr Murphy said civil servants in Belfast are preparing detailed costings for pledges the UK and Irish governments made in the agreement.

He said the Executive is “united in its approach to this”.

The Sinn Féin minister went on: "The first and deputy first minister wrote to the Prime Minister yesterday to tell him that we are doing a piece of work, a more detailed piece of work through my department, costing the commitments that the two governments made in the document that they produced last week.

"We want to provide accurate costs for that.

"We intend on the back of that work to engage with Treasury, to engage with the Prime Minister's office and to engage with the Northern Ireland Office because that is where the blockage is in terms of that commitment.”

Stormont ministers are expecting billions of pounds from the Treasury to finance ambitious plans outlined in the ‘New Decade, New Approach’ deal.

Conor Murphy said they “may well be may be over in London” next week talking to people in the Treasury and at Downing Street.