Recommendation 10

HM Government · verbatim extract Accepted in Part

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. We are committed to improving transparency of aid globally and maintaining our high standards for overseas spending. Work has begun to bring together DFID and FCO’s different data systems, to support efficiency and aid transparency. We anticipate that FCDO will be assessed in the next Aid Transparency Index (next occurring in 2022). We will continue to be accountable to parliament and to taxpayers for how we spend UK aid. The ‘Devtracker’ tool will be maintained as an effective way of presenting aid spending to the public alongside other methods. “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 of the relationship , receive comprehensive training on the International Aid Transparency Initiative Standard ”. (Paragraph 30) 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. “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 the UK’s ODA spend. We recommend that the Government commits to maintaining ICAI as an independent body for scrutinising the UK’s overseas aid spending. Parliament should continue to be able to make full use of the important work of ICAI in scrutinising ODA spending; a dedicated select committee should have responsibility for all aspects of coordination and cooperation with ICAI”. (Paragraph 31) 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 high standards. The Foreign Secretary has recently announced that ICAI will not only continue to provide independent scrutiny of aid spending, but will have its mandate broadened to provide policy recommendations alongside its critical analysis. The Foreign Secretary has also commissioned a review to make sure ICAI’s remit, focus and methods are effectively scrutinising the impact of UK Official Development Assistance, in line with the aims of the new department. The Government agrees that Parliament has an important role in scrutinising UK aid spending. Select committees are fundamental in scrutinising the Government’s spending and policies, and we are grateful for the constructive and collaborative approach adopted by the Foreign Affairs Committee. The Government’s view is that Select Committees in the Commons should generally mirror Government departments. The Prime Minister has said, he expects Parliament will want to set up a new committee to scrutinise the new department. Ultimately the structure and remit of Select Committees is a matter for Parliament. “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 savings, no later than six months after the merger is completed”. (Paragraph 33) 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 from potential administrative savings but also through increased coherence through the Government’s overall international agenda. Work has commenced on monitoring what additional costs will need to be borne in the short term. Both the costs of the merger and potential efficiencies will be factored into the forthcoming Spending Review and FCDO are working closely with HM Treasury on this. Whilst we agree that the recording and reporting of merger costs and savings are important more time will be required before we can determine when a clear picture on the costs and savings can be known. We expect to publish figures in the FCDO’s annual report and accounts for 2020–21. “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