British Prime Minister Mr Tony Blair is resisting pressure from Ulster Unionist leader Mr David Trimble to recall the Stormont Assembly to vote on a motion to exclude Sinn Féin from a resumed power-sharing Executive.
This emerged last night as the Northern Ireland Secretary, Mr Paul Murphy, prepared to impose limited financial sanctions on Sinn Féin in response to the Independent Monitoring Commission's (IMC) report on the Northern Bank robbery.
The Irish Times understands that in his Commons statement today Mr Murphy will propose the renewed withholding of Sinn Féin's "Assembly Party Allowance" - worth £120,000 - when that existing penalty expires in April.
In addition, he is expected to signal the government's willingness to bring forward a motion calling for the withdrawal of Sinn Féin MPs' Westminster allowances, worth close to £500,000 a year.
However indications are that Mr Murphy has decided against withdrawing the salaries and expense allowances of Sinn Fein's Assembly members, worth an estimated £1.5 million a year.