Foreign, Commonwealth and Development Office

That, for the year ending with 31 March 2026, for expenditure by the Foreign, Commonwealth and Development Office:

(1) the resources authorised for current purposes be reduced by £595,921,000 as set out in HC 1676,

(2) the resources authorised for capital purposes be reduced by £228,252,000 as so set out, and

(3) a further sum, not exceeding £6,190,000, be granted to His Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.—(Taiwo Owatemi.)

I thank the Backbench Business Committee for granting a debate on this topic, which takes place at such a crucial time for the Foreign, Commonwealth and Development Office. I also take this opportunity to thank FCDO staff for their ongoing efforts to support British nationals caught up in the conflict in the middle east.

Over successive Governments, we have seen a sustained reduction in the United Kingdom’s development budget, ODA—official development assistance. First we saw the cut from 0.7% to 0.5% of GNI, and there is now a stated path towards 0.3% by 2027. It has also been reported that the UK’s international climate finance commitment is now to be slashed by £2.6 billion. Those cuts have consequences: they affect how the UK is perceived internationally, as well as our ability to support stability and prosperity, both overseas and in our own country.

Aid has always been a highly cost-effective way of preventing conflict and reducing pressures that eventually reach our own borders. It allows girls to be educated, women to work, farmers to feed their communities, and disease to be challenged and contained. It also allows civil society to hold Governments to account. It is our soft superpower, and its benefits must not be underestimated.

The FCDO, as the past weekend proved, is constantly dealing with fast-shifting geopolitical sands. In this current financial year, as part of the FCDO’s supplementary estimate, we see further cuts to both day-to-day and investment spending, both of which have reduced quite dramatically—day-to-day spending by £457 million, and investment spending by £228 million. Most of these cuts are focused on the ODA budget, although Parliament has not yet been provided with details showing exactly where these reductions will fall.

I commend the hon. Lady—a champion by name and a champion by conviction. We are very pleased to see her in her place, and we thank her very much for what she does.

I sometimes think there are opportunities for partnerships. For instance, churches in my constituency have very active partnerships in Zimbabwe, Malawi, Swaziland, Kenya, Uganda and Nigeria, so there is perhaps a way of partnering with church groups, non-governmental organisations and individuals that have an interest in helping. Does the hon. Lady feel that the Minister and the Government should take that on board and look at it?

I thank the hon. Member for his kind words and for expressing that sentiment. Of course, faith communities do so much internationally, because it is the right thing to do, but they should be complementing what Governments are doing. At the moment, we know the scale of the cuts, but we do not know the distribution—it is not fair to be looking for philanthropic kindness to fill those gaps.

We know that reductions are taking place, but we do not know which programmes will be impacted. That is not just us in this House but the people on the frontline trying their very best to deliver these programmes to the very poorest.

I appreciate that my hon. Friend’s answer to this question may well be that we do not know, which I think is the point she is making, but I have asked the Minister a number of questions about the UK leading on the eradication of polio, and I have actually received some very good answers—I am not just saying that because he is in his place. How reassured is my hon. Friend on that issue? Has she asked the FCDO about the need to ensure that the UK remains a leading player in the eradication of polio worldwide?

I thank my hon. Friend for raising that issue. Polio is one of the success stories to show what can happen when countries work together, and we have almost completely eradicated it—I think we are at 99.98%. I urge the Minister not to step away from that programme.

The FCDO has indicated that more information will soon be released about such programmes, including the eradication of polio, that will set out ongoing further funding for ODA projects. However, at present we must be realistic. Members are being asked to vote on billions of spending authority without having that complete picture, which greatly limits our ability to assess the real-world implications of the Government’s decisions. This uncertainty has consequences for long-term partnerships, humanitarian operations and communities that are relying on our support.

The estimate also raises questions about staffing and our capability. Crises from Sudan to Gaza, and from the horn of Africa to Ukraine and, of course, the middle east, require experienced personnel and effective programme oversight. Any reduction in FCDO staffing risks weakening the Department’s ability to deliver and evaluate programmes effectively.

In this context, the fact that the FCDO faces cuts to its headcount seems incredibly short-sighted. A major restructure is ongoing right now, and it is expected to reduce the workforce by 15% to 25%—we do not know and, unfortunately, the staff do not yet know. The failure to produce and share a workforce plan or equalities impact assessment does little to reassure me that the FCDO has sufficiently engaged the staff or unions in its restructuring, or that it has considered the implications of staffing reductions on its ambitions for ODA. There are unanswered questions about the FCDO’s ability to retain sufficient expertise and manage its complicated portfolio with such a tight funding envelope.

I thank my hon. Friend for her very powerful and pertinent speech. One of the big shifts is from aid to trade, and as trade envoys, we are trying to deliver some of our aid ambitions through trade relationships. However, if we just do not have the people available, there is no way that we can make that shift. I know that she has already started to talk about the importance of ensuring that we have people present, but can she elaborate on the importance of retaining them in the country so that we can deliver the transition that we expect to see?

My hon. Friend is absolutely right. Of course, we have FCDO and trade staff working together to support the work that he and many others are doing. Trade is fantastic—it is something that we support. I support British International Investment, which I will come on to in a moment, but it is not something that can stand alone. Our ODA money is there to support the very poorest in the world, to enable them through training, education and entrepreneurial skills to get to a point where we hope they can be a trading partner with the UK.

My hon. Friend makes a very important point about how we develop communities and individuals. Does she agree that co-operatives have an important role to play in economic development, as they not only create jobs but give people a stake in the future of those jobs?

I absolutely agree with my hon. Friend. The only way that I am aware of co-operatives starting is by groups of local people coming together. That is what FCDO and ODA money is particularly good at doing—supporting civil society. I mentioned holding Governments to account, but of course, the economic empowerment that comes from communities being involved in the development of their own countries is something that we have supported so well for decades. I really hope we are able to continue to do so.

One concern I have is about the money that will likely be spent on staff redundancies that would be much better spent on furthering British priorities overseas. Of course, there are also pressures on the wider network of institutions that further the UK’s interests overseas, such as the British Council and the BBC World Service. Those institutions play a really important role in projecting the UK’s soft power, and require stable and predictable funding. Although more funding has been provided in the supplementary estimates, this follows a long period of damaging uncertainty, which has really weakened our hand.

Inadequate transparency over aid spending has been a persistent theme for the past few years. I am proud of the work my Committee has done to shine a light on where aid cuts have fallen and the impact they have had. I am also extremely grateful to the excellent support provided in this task by my Committee staff and the House of Commons financial scrutiny unit, but we do not do this work alone; independent scrutiny bodies such as the Independent Commission for Aid Impact play a central role in maintaining transparency and accountability and in ensuring that Members have the information we need. I am deeply concerned that ICAI may be axed as part of these cuts, and I hope the Minister can reassure us that I am wrong about that.

This estimates debate sits within a broader shift in the UK’s aid strategy towards investment-led development, which is evident in nearly £0.5 billion funding for British International Investment this year. BII’s model is built on long-term investments rather than rapid humanitarian response, but that raises questions about the breadth of our development portfolio, and whether we are still there to help the poorest of the poor if we do not have the other support that underpins BII.

I thank the Chair of the International Development Committee for her opening remarks, and I echo the sentiments of the hon. Member for Strangford (Jim Shannon). Does she agree that it was extremely disappointing that the previous Government, and indeed this Government, did not follow the recommendation of the International Development Committee that there should be someone from the Foreign, Commonwealth and Development Office on the board of BII—not to make investment decisions, but to ensure it is aligned with Government strategy and policy?

I thank the right hon. Member, my fellow Committee member, and I share his sentiment. For those who do not know, BII is our development bank. The FCDO is its sole stakeholder, and it does seem very short-sighted and out of line with other international development banks that we do not have a seat on the board, even if it is a non-voting seat. I urge the Minister to consider that report of the Committee and its recommendations. I recognise the truly excellent work that BII does, but it is a strategy—