A Downing Street spokesperson said:
The Prime Minister has spoken on the phone to the leadership of the DUP and Sinn Fein parties about the political situation in Northern Ireland.
In separate phone calls, she expressed her concern that despite recent progress agreement had not yet been reached and she urged both parties to bridge the gaps on the outstanding issues that remained.
On Northern Ireland’s finances, the Prime Minister explained how the UK Government will reluctantly be taking forward legislation for a Budget Bill on Monday, to ensure that in the absence of an Executive, public services in Northern Ireland have the resources they need to operate.
The Prime Minister made clear this was absolutely not an indication of direct rule but it was necessary to enable the Northern Ireland Civil Service to allocate funds for key public services while talks between the parties continued.
There was agreement on the importance of devolved Government being returned to Northern Ireland for the benefit of all communities and the Prime Minister said that the UK Government would continue to work, alongside the Irish Government, with the parties in reaching a successful outcome.