Edward Morello

Edward Morello

Liberal Democrat — West Dorset

Speaking in the House of Commons on 4 March 2026

Debate

Foreign, Commonwealth and Development Office

Contribution

I am sure I am not alone in having been contacted by constituents trapped in the middle east or by those further afield who were hoping to transfer in the middle east on their way home. I am extremely grateful to all the FCDO staff around the world who are helping them out. It has brought into stark relief the fact that, in an unstable world, diplomacy and our diplomatic footprint has never been more important. The people, embassies, development expertise, aid, investment and political relationships we maintain across the globe are so important for our national security, our economy, the future of our planet and what Britain represents. The latest funding settlement for the FCDO moves us in the wrong direction. Day-to-day spending is being reduced by £457 million—a 5.3% cut; the second highest cut for any Department, behind only the Home Office. Capital investment is down by £228 million—a 66.6% reduction; again, the second highest cut for any Department, apart from the Ministry of Housing, Communities and Local Government. Demand-led spending is dropping by a further £139 million, or 25.7%. These are sweeping cuts across the board, aimed disproportionately at the FCDO. They are why the FCDO has been forced into a restructuring process that may lead to the loss of nearly 2,000 jobs. These are significant reductions that come at a time when the world is becoming more and more volatile. If we continue in this way, our diplomatic presence will shrink not because of strategy, but because of budget constraints and Treasury spreadsheets. We are no longer operating in a stable rules-based system dominated by one predictable power. We are moving towards a more fragmented, multipolar world. Middle powers are increasingly working together issue by issue on defence, trade and climate, rather than relying on a single hegemon to set the direction. As Canadian Prime Minister Mark Carney said in his powerful speech at Davos, middle powers must act together or risk being “on the menu”. For countries like the United Kingdom, the shift is important and it requires huge amounts of diplomacy and the use of our soft power on the world stage. Great powers can act alone. They have the market size and economic leverage to do so. Middle powers cannot. We rely on relationships; we rely on credibility; we rely on co-ordination with those who share our values; and we rely on diplomacy. That is precisely why FCDO funding is so important. We invested heavily, both politically and financially, in our relationship with the United States, but we should be honest about the returns on our investment when the President does not share our values. When tariffs are imposed on British businesses and working families during a cost of living crisis, when trade decisions affect our farmers and our food standards, when strategic choices are made without our meaningful input, and when economic clout is used as leverage, it is reasonable to ask whether our limited diplomatic resources are being used in the most effective way now that the weakness and fragility of our relationship have been exposed.

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