Source · Select Committees · International Development Committee

Recommendation 2

2 Paragraph: 29

While merging departments may seem attractive short-term, with improved policy coherence and possible administrative savings,...

Conclusion
While merging departments may seem attractive short-term, with improved policy coherence and possible administrative savings, they can be extremely costly and disruptive and impair organisational effectiveness. In the long run, the creation of the FCDO could reduce the UK’s influence on the world stage.
Paragraph Reference: 29
Government Response Acknowledged
HM Government Acknowledged
As the Foreign Secretary stated in Parliament on 8 September, “The creation of the new Foreign, Commonwealth and Development Office today is a key moment: a key moment for our vision of a truly global Britain, and a key moment for our integration of our international efforts in order to maximise their impact abroad. With this innovation, we are drawing on the example of many of our allies, such as Australia and Canada and, indeed, the vast majority of OECD countries, by putting our world-class aid programme at the beating heart of our wider foreign policy decision-making, and doing it in a way that works best for the United Kingdom. We are integrating and aligning the UK’s expertise as a development superpower with the reach and clout of our diplomatic network in order to ensure that their impact internationally is bigger than the sum of their parts”. As we have seen with the coronavirus pandemic, the world will become even more complex and competitive, with growing, interconnected challenges and opportunities for the UK. That is why the Prime Minister has decided that now is the right time to reform how the government operates internationally. We need a new all-of-government approach if we are to secure our values and interests, and be a stronger Force for Good, in a changing world. Building shared global prosperity, eradicating poverty, tackling climate change, strengthening the international rule of law and global security, and promoting free, open societies are in our national interest. This approach will strengthen our ability to lead the world’s efforts to recover from the Covid-19 pandemic and allow us to seize the opportunities ahead, as we prepare to take on the G7 presidency and host COP26 next year. We are monitoring the costs of the merger; however, at this stage it is too early to assess what these will be as the full transformation will be developed and delivered through the phased transformation programme. Both departments are committed to minimising costs where possible, as well as maximising the opportunities for savings and efficiencies. 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.