Source · Select Committees · Foreign Affairs Committee
Recommendation 13
13
Paragraph: 33
The Government has made clear that the intention of the merger is not to save...
Recommendation
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 Reference:
33
Government Response
Acknowledged
HM Government
Acknowledged
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.