The Northern Ireland Secretary of State James Brokenshire has said he believes that a deal to re-establish a power-sharing government at Stormont is still possible.
Speaking to business leaders in Belfast this evening, Mr Brokenshire said he accepted that there was a mountain to climb in restoring the Executive and the Assembly.
However, he said Sinn Féin and the DUP, and the other parties, were still engaged in discussions aimed at achieving restoration.
He said that if it did not happen within a short number of weeks, there was a risk of greater political decision making for the North from Westminster.
Mr Brokenshire said: "If things don't change we are on a glide path to greater and greater UK government intervention.
"But I believe we can change course.
"This can be achieved with political leadership and with support of the people of Northern Ireland - including communities and businesses.
"For nine months government has been effectively in the hands of civil servants rather than accountable politicians who cannot agree on returning to devolved coalition government."
Mr Brokenshire added: "This has meant there has been no political direction to tackle the fundamental challenges facing Northern Ireland - including the reform and transformation of critical public services."
He said passing a budget at Westminster for public services in Northern Ireland this year would be profoundly a backward step.
"But in the continuing absence of devolution the UK Government retains ultimate responsibility for good governance and political stability in Northern Ireland as part of the UK - and we will not shirk from the necessary measures to deliver that."