By Siobhan Fenton, Press Association
Powersharing talks between the DUP and Sinn Fein have stalled, Northern Ireland Secretary James Brokenshire said, forcing him to set a new deadline for a deal.
Mr Brokenshire said parties would now have to reach an agreement by the end of October, in order for Westminster to have time to prepare to set a budget the following week.
He said talks between the parties had made progress but had broken down last week over culture and language issues.
Mr Brokenshire made the assessment while giving evidence to the Northern Ireland Affairs Committee at Westminster.
He said: "A breakthrough has not been reached. Whilst if I had given evidence to this committee last week, I might have indicated some momentum, some more positive progress, that momentum stalled at the end of last week."
He added: "The prospects do not look positive at this time."
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