The government’s funding announcement comes as Stormont ministers are already braced for potentially difficult news in the Budget.

Recent months have been dominated by media reports about which taxes could increase, with multiple potential measures floated by the government.

On Sunday, Stormont’s Finance Minister John O’Dowd said executive departments are facing a £400m overspend based on current financial commitments.

O’Dowd said speculation and “confusion in messaging” ahead of the budget had been difficult for everyone.

He had previously warned other executive ministers to be braced for the potential of cuts in the Autumn Budget.

The SDLP (Social Democratic and Labour Party), Stormont’s official opposition, has written to the chancellor arguing for “enhanced” fiscal powers for Northern Ireland to allow for better planning on a multi-year basis.

Its leader Claire Hanna said executive ministers “cannot continue to absolve themselves of any responsibility when it comes to the state of our public finances”.