Northern Ireland's public services will be required to find efficiency savings of at least £535 million by 2007/08, it has been announced.

While the devolved Stormont executive remains suspended, cash will continue to be channelled thorough the Northern Ireland Office.

Gordon Brown said that total spending on the Northern Ireland Office will be cut over the life of the spending review, falling from the current £1.159 billion to £1.154 billion by 2007/08.

But for areas covered by the executive it will rise by £1.3 billion to £8.3 billion by 2007/08.

Ulster's ministers indicated they would focus spending on supporting reforms in policing and the criminal justice and prison services.

Other programmes to tackle crime and re-offending are also set to gain.

Northern Ireland secretary Paul Murphy said the resources would also be used to push forward the peace process.

"The spending review demonstrates the government’s commitment to improving the efficiency and productivity of public services and modernising the workings of government," he added.

"I look forward to continuing with the wide ranging programme of reform to the police and prison services, and indeed to the whole of the criminal justice system. We are determined to increase confidence in the justice system and reduce crime in Northern Ireland."