Foreign, Commonwealth and Development Office maintains 0.7% commitment

By Tim Le Couilliard, Senior Executive

Whitehall has a new department – the Foreign, Commonwealth and Development Office. Forming from the merger of the Foreign and Commonwealth Office and the Department for International Development, the FCDO unveiled its new plaque outside the grand King Charles Street building earlier today.

Unlike other departmental mergers, disbandment, reshuffles and general Whitehall movement, this merger has an added complication – the controversial and politically charged debate surrounding Britain’s aid budget. In the midst of an economic crisis, and one that is going to be painful and costly to shrug off, this financial contribution has been brought into question once again.

There has been typical political debate, at least behind the scenes, concluding in the government once again committing to spending 0.7% of the UK’s national income on foreign aid. The establishment today of the FCDO was seen by some, including those at the Treasury, as being the moment to spark the debate on the allocation of the circa £15 billion aid budget. The morning papers were heavily briefed to suggest that the Chancellor was looking to cut aid spending in the upcoming Autumn budget, which would be a direct rejection of the 2019 Conservative Manifesto, as well as requiring a change in the law. This has since been quickly shut down, strongly, by Foreign Secretary Dominic Raab – “tittle-tattle” he said.

Of course, it was only last week that Raab called for a review into the aid watchdog Independent Commission for Aid Impact, ICAI. Being launched later this month, the review will seek “tangible, evidenced-based recommendations to drive effective overseas development spending.” With both the amount and direction of UK aid being scrutinised the government may well redefine the whole meaning of UK aid.

Part of the reasoning behind the review is to support the new FCDO’s target to “unite aid with diplomacy” – one of Boris Johnson’s goals when he announced the new department a few months back. The Prime Minister says that “for too long,” Britain’s overseas aid has been a “giant cashpoint in the sky” and that the merger would ensure “maximum value.”

Today, in the official announcement of the FCDO, the stated aim of the Department is to “fight back against the devastating impacts of coronavirus, conflict and climate change”, commencing with a new £119 million aid package to tackle the issues. To lead this Raab has appointed former DFID acting Permanent Secretary Nick Dyer as the UK’s first Special Envoy for Famine Prevention and Humanitarian Affairs.

It seems fitting therefore that the new Department has been launched just as the UK takes on both the G7 and COP26 Presidencies – reflections of both that can be seen in the new Department.

In terms of the leadership of the Department, Foreign Secretary Raab has remained in position, as have the former FCO ministers, most of whom had previously served in a joint role with DFID anyway. Anne-Marie Trevelyan has been relieved of her role as Secretary of State for International Development. She is highly regarded, however, and so one to watch at the next reshuffle, with many current Cabinet Ministers potentially set to be replaced by her. For an up to date look at the Newgate ‘SPAD Chart’ reflecting the new changes, see here.

Sir Philip Barton is the new Permanent Under Secretary for the new department, having previously been High Commissioner to India (and previously Pakistan). He thus serves as the Head of the HM Diplomatic Service and has picked up the responsibilities from Sir Simon McDonald, who was appointed in September 2015 but has since taken early retirement as part of the departmental merger.