Select Committee · Foreign Affairs Committee

FCO-DFID merger

Status: Closed Opened: 18 Jun 2020 Closed: 24 Sep 2020 14 recommendations 2 conclusions 1 report

Reports

1 report
Title HC No. Published Items Response
Second Report: Merging success: Bringing together the FCO a… HC 525 23 Jul 2020 16 Responded

Recommendations & Conclusions

16 items
1 Recommendation Second Report: Merging success: Bringin…

Given the gap between the merger and the reporting date of the Integrated Review, the...

Given the gap between the merger and the reporting date of the Integrated Review, the FCDO risks operating for months without clear strategic direction, which will be compounded by the likely productivity dips which follow departmental mergers. The FCDO is being created to bring coherent strategy to UK foreign and …

Government response. As the new Foreign, Commonwealth and Development Office sets its new priorities, it will be essential to draw on the outcomes of the Integrated Review and Comprehensive Spending Review to shape the objectives and systems of the new department. In …
Foreign and Commonwealth Office
2 Recommendation Second Report: Merging success: Bringin…

For the Government to deliver on its stated aim of more accountable development spending with...

For the Government to deliver on its stated aim of more accountable development spending with a greater focus on the national interest, it should establish and deliver on a clear strategy for communicating its interpretation of the ‘national interest’ to Parliament, institute regular reporting to Parliament, and be explicit in …

Government response. At the heart of the Integrated Review is the Government’s commitment to ensure that UK’s international and national security policy should deliver for our people and be firmly rooted in our national interests. As the PM has said, this merger …
Foreign and Commonwealth Office
3 Recommendation Second Report: Merging success: Bringin…

The FCO and DFID have shared ministers since February 2020, which may provide the model...

The FCO and DFID have shared ministers since February 2020, which may provide the model for ministerial portfolios in the new Department. However, it is not yet clear how many Ministers will serve in the new Department, whether the existing joint portfolios will be replicated, nor whether responsibilities will be …

Government response. The FCO and DFID joint ministerial team are continuing in their roles in FCDO with their previous portfolios to ensure continuity of delivery.
Foreign and Commonwealth Office
4 Recommendation Second Report: Merging success: Bringin…

In the interests of accountability, the Government should explain the process that led to the...

In the interests of accountability, the Government should explain the process that led to the decision to merge the FCO and DFID. We ask that the Government publishes the findings of its consultation, including a list of contributors and the timeframe in which it was executed. (Paragraph 14) Staff and …

Government response. The allocation of ministerial responsibility and the machinery of government that supports that is a matter for the Prime Minister. The Prime Minister has considered the question of synergies between FCO and DFID since his time as Foreign Secretary. Engagement …
Foreign and Commonwealth Office
5 Recommendation Second Report: Merging success: Bringin…

To integrate the Departments successfully, the new PUS must have the skills and experience necessary...

To integrate the Departments successfully, the new PUS must have the skills and experience necessary to effectively oversee both diplomatic and development projects. Above all else, they must have exceptional knowledge and experience of change management and major project delivery to allow them to oversee a merger of this scale. …

Government response. A comprehensive selection criteria, which included many of the elements listed, was used to recruit Sir Philip Barton as the Permanent Under-Secretary for FCDO. The recommendation regarding any pre-appointment hearing for the PUS of the merged Department is addressed to …
Foreign and Commonwealth Office
6 Recommendation Second Report: Merging success: Bringin…

The strength and reputation of the UK’s world-class aid delivery is in large part due...

The strength and reputation of the UK’s world-class aid delivery is in large part due to the skills and experience of DFID staff. We recommend that the Government makes staff retention a priority and implements a clear strategy for retaining DFID staff with valuable technical and programming expertise. This will …

Government response. DFID’s amassed world class expertise is rightly a source of national pride and has helped transform hundreds of millions of lives around the world. Their ambition, vision and expertise will be at the heart of the FCDO. We have initiated …
Foreign and Commonwealth Office
7 Recommendation Second Report: Merging success: Bringin…

We welcome the Foreign Secretary’s assurance and his pledge to engage with staff throughout this...

We welcome the Foreign Secretary’s assurance and his pledge to engage with staff throughout this process, but clarity on the nature of future roles is needed as soon as possible. We recommend that the Government presents a clear plan to staff over which specific roles will change, and which will …

Government response. Some roles in the FCDO may change due to business needs and any changes will be handled in accordance with relevant civil service policy and legal guidance. We can however confirm that there will be no compulsory redundancies as a …
Foreign and Commonwealth Office
8 Recommendation Second Report: Merging success: Bringin…

Diplomacy and development require different but complementary skillsets; it is vitally important that staff are...

Diplomacy and development require different but complementary skillsets; it is vitally important that staff are clear on what specific skills staff will need to develop in order to undertake their responsibilities effectively and to progress in the new Department. Early indications should be given as to the skills and competencies …

Government response. The FCDO will build on the strengths of both the FCO and DFID, developing the capability and skills of its staff in development and diplomacy while also leading efforts to improve international capability across Government. As we continue develop the …
Foreign and Commonwealth Office
9 Recommendation Second Report: Merging success: Bringin…

We welcome work being done to increase in-country collaboration, and believe that in-country leadership of...

We welcome work being done to increase in-country collaboration, and believe that in-country leadership of projects should be enhanced, not diminished. The new Department has the opportunity to build on examples of excellent in-country work completed by both the FCO and DFID, and to build on existing cooperation between the …

Government response. As the Prime Minister noted in his statement to the House of 16 June 2020, the creation of the FCDO empowers The Foreign Secretary to deliver a single, unified UK strategy for each country overseen by the National Security Council. …
Foreign and Commonwealth Office
10 Recommendation Second Report: Merging success: Bringin…

The merger presents an opportunity for the FCO to learn from DFID’s positive record on...

The merger presents an opportunity for the FCO to learn from DFID’s positive record on transparency, and to be more proactive in publishing details of project expenditure. We recommend that the UK sets ambitious new commitments to aid transparency, to be reviewed on an annual basis. In its first year, …

Government response. The UK is globally recognised for its expertise and transparency in aid spending. The new Foreign, Commonwealth and Development Office will continue to benefit from that expert knowledge as it delivers aid programmes to some of the world’s poorest people. …
Foreign and Commonwealth Office
11 Recommendation Second Report: Merging success: Bringin…

To ensure this goal is achievable, all staff in the FCDO working on development should...

To ensure this goal is achievable, all staff in the FCDO working on development should have a thorough understanding of the international aid transparency frameworks and standards they are working towards. We recommend that all FCDO staff working on development projects or overviewing diplomatic outreach where aid is an element …

Government response. FCDO staff will have access to information and training on transparency commitments and the IATI standard, as part of the standard training for staff working on ODA delivery.
Foreign and Commonwealth Office
12 Recommendation Second Report: Merging success: Bringin…

We believe that, as the Government is maintaining its commitment to spending 0.7 percent of...

We believe that, as the Government is maintaining its commitment to spending 0.7 percent of GNI on ODA, the current level of scrutiny on ODA spend should also be maintained. The Independent Commission for Aid Impact (ICAI) has shown itself be an effective and reputable vehicle for the scrutiny of …

Government response. The Foreign, Commonwealth and Development Office remains committed to the highest standards for overseas spending and improving transparency of aid globally. ICAI plays a vital role supporting Parliament in the scrutiny of UK aid’s impact and helping to maintain these …
Foreign and Commonwealth Office
13 Recommendation Second Report: Merging success: Bringin…

The Government has made clear that the intention of the merger is not to save...

The Government has made clear that the intention of the merger is not to save costs but has suggested better value for money is available through it. This could be through reducing administrative costs. We recommend that the Government reports on the short-term costs as well as any anticipated long-term …

Government response. It is important that the FCDO records any new cost pressures that arise from the merger as well as assessing the opportunities for savings or efficiencies that might be achieved. Better value can be expected to be derived not just …
Foreign and Commonwealth Office
14 Recommendation Second Report: Merging success: Bringin…

Ministers have suggested that the merger will deliver better value for money on overseas spending...

Ministers have suggested that the merger will deliver better value for money on overseas spending of UK taxpayer money, but have not clarified how this greater value will be delivered. The Government should provide a detailed explanation of how this merger will provide greater value for money on spending, and …

Government response. There may be cost savings in the long term as a result of using resources more effectively and efficiently, but this is not the primary goal of this merger. As the Prime Minster outlined in his 16 July statement to …
Foreign and Commonwealth Office
15 Conclusion Second Report: Merging success: Bringin…

As the aim of the merger is to harmonise UK foreign and development policy, it...

As the aim of the merger is to harmonise UK foreign and development policy, it is essential that the Government does not focus solely on the ODA spend of the FCDO, but ensures that the new Department has responsibility for the coordination of ODA spending across Whitehall. In its response …

Government response. The Integrated Review will define the Government’s ambition for the UK’s role in the world and the long-term strategic aims for our national security, defence, development and foreign policy. In conjunction with the Spending Review, the Integrated Review will set …
Foreign and Commonwealth Office
16 Conclusion Second Report: Merging success: Bringin…

It is also important that the alignment in aid and diplomacy is not used as...

It is also important that the alignment in aid and diplomacy is not used as an excuse to roll back the reforms that have ensured the UK’s IMF and World Bank positions are still staffed by individuals with experience of multilateral aid and major project management, whose skills will now …

Government response. The UK’s IMF and World Bank positions should continue to be staffed by individuals with relevant expertise, such as experience of working with multilateral institutions and delivering major projects on the ground. FCDO will continue to house aid, policy, programme …
Foreign and Commonwealth Office

Oral evidence sessions

1 session
Date Witnesses
7 Jul 2020 Lord Macpherson of Earl’s Court · HM Treasury, Tim Durrant · Institute for Government View ↗

Correspondence

1 letter
DateDirectionTitle
7 Jul 2020 Correspondence with the Foreign Secretary on FCO-DFID Merger dated 23/6/2020 an…