Confusion has arose over how the money can be spent. (Daniel Leal-Olivas/PA)

Government sources have told the BBC the money agreed in the DUP/Tory deal will not be available to spend until devolution is restored.

The BBC reported on claims made by a senior civil service source who said the Treasury has made clear "not a penny" would be released until an Executive was up and running again.

Number 10 has been asked for a comment. The Treasury referred us to Number 10.

The Conservatives struck a "confidence and supply" deal with the DUP to allow it to operate a minority government. Health, education and infrastructure projects were set to benefit.

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In July the Treasury told the Belfast Telegraph the money was available for the power-sharing Executive to spend on key priorities and that it would not "sign off on projects".

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However, the DUP has said the money will be available to spend without local government.

In a written statement to Parliament ahead of the summer break, Secretary of State James Brokenshire also said it would be up to an Executive to agree how it wanted to spend the money.

The Stormont government has been suspended since the snap election in March. In a report in Friday's News Letter, Stormont sources said there had been a "definite shift" in relations between the DUP and Sinn Fein in finding agreement in the past two days.

Belfast Telegraph