Select committee: International Development Committee

Recommendation 13

Fourth Report - Effectiveness of UK aid: potential impact of FCO/DFID merger Published 16 Jul 2020 Paragraph 91 Addressed to Foreign, Commonwealth & Development Office
Recommendation (the committee's words)
Multilateral spending forms an important part of the UK’s ODA, but we are concerned that the merger may lead to an increase in funds provided to these organisations for generalised future spending rather than targeted funds delivering immediate benefits. As part of the Integrated Review, the Government should set out its strategy for development spending through multilateral institutions over the next five years, including the proportions of UK ODA to be spent through bilateral and multilateral channels, whether it intends to honour existing agreements and how it will it will seek to influence these organisations to ensure that UK aid is spent in the best possible way.

From: International Development Committee, Fourth Report - Effectiveness of UK aid: potential impact of FCO/DFID merger (HC 596), paragraph 91, 16 July 2020

Government response

The government responded to the whole report on 2 October 2020 (deadline 16 September 2020).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government defends the merger of DFID and the FCO as the right decision, saying it will "maximise the impact of our aid budget", and responds to the Committee's other recommendations with commitments, some qualified.

  • On the merger, it says it "was right to take the decision to create the FCDO when we did", and says it is "monitoring the costs" but "at this stage it is too early to assess what these will be".
  • On the proposal for a Minister for Development attending Cabinet, it states only that "The Foreign Secretary is responsible for development and aid spend."
  • On a target for programmes to achieve a minimum ICAI grading of 'green/amber' within a year, it says it strives for this "where applicable" and does not set the target. It expects the FCDO to be assessed in the next Aid Transparency Index, "next occurring in 2022".
  • On scrutiny, it says the structure and remit of Select Committees "is a matter for Parliament". ICAI will continue, with a broadened mandate and a commissioned review of its remit, and the form of scrutiny after the merger "will be set out in due course".

Read the government's response ↗ Report an error