Edward Morello

The Foreign, Commonwealth and Development Office plays a vital role in supporting and protecting people around the world, upholding Britain’s diplomatic presence and promoting our values and interests. In my short time on the Foreign Affairs Committee, I have been repeatedly struck by the impressive quality of the people we are fortunate enough to have working on our behalf around the world. However, even as we face increasing geopolitical instability, transactional diplomacy and wars in multiple regions, the financial pressure on the Department is testing our ability to play the role that Britain should be playing in the world. For over a decade, the maintenance of the FCDO overseas estate, which includes 6,000 properties across 180 countries, has been funded through the sale of assets. That is not a sustainable model, and the reality is that there is no more silverware left to sell. Giving evidence to the Foreign Affairs Committee, Sir Philip Barton, the then outgoing permanent under-secretary, acknowledged that the current funding structure will not work for much longer. The cost of essential maintenance is estimated to be £250 million a year, and that figure is only rising. From next year, the ability to draw down from receipts of previous asset sales will disappear completely. Unless the Treasury allows for that additional cost in future budgets, the cost will have to be met by cuts elsewhere in an already overstretched Department. This issue goes beyond bricks and mortar. The UK’s overseas presence is a direct reflection of our diplomatic standing and soft power. We cannot expect our embassies to champion British interests when they are in dire need of investment. The Foreign Secretary himself has recognised the need for a sustainable funding settlement and highlighted the condition of our estate in China as a particular concern. The Government must set out an alternative long-term funding model—one that does not rely on the fire sale of national assets. At the same time, we must address the deeply concerning cuts to ODA. The UK has long been a world leader in international aid, and we are the fourth highest donor in absolute terms. The Government’s decision to reduce our aid budget risks undermining our ability to deliver on those commitments and the ones we have made to the world’s most vulnerable. The Prime Minister has rightly stated that the UK will prioritise Ukraine, Sudan, Gaza, climate finance and global health, but with a shrinking budget, delivering on those priorities will be close to impossible. I recognise that difficult choices must be made to stand firmly with our allies in Ukraine during this critical time. Our support for the Ukrainian people must be strong and unwavering. It is a sad indictment of the current state of global affairs that in a war between the west and Russia, the first to withdraw from the fight was the United States. It is therefore even more vital that we increase defence spending to ensure that our allies around the world know that they can continue to rely on Britain in this increasingly unstable world. The answer, however, is not to cut ODA. The Foreign Secretary himself warned of the risks of stepping back from development aid. The reality is that budget cuts will severely limit our ability to counter malign influence and to support fragile states. My party has warned that the UK’s decision to reduce its aid spending will “leave a vacuum for Russia and China to fill”.