Foreign, Commonwealth and Development Office Debate
Full Debate: Read Full DebateDavid Mundell
Main Page: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)Department Debates - View all David Mundell's debates with the Foreign, Commonwealth & Development Office
(1 day, 12 hours ago)
Commons ChamberI absolutely agree with my hon. Friend. The only way that I am aware of co-operatives starting is by groups of local people coming together. That is what FCDO and ODA money is particularly good at doing—supporting civil society. I mentioned holding Governments to account, but of course, the economic empowerment that comes from communities being involved in the development of their own countries is something that we have supported so well for decades. I really hope we are able to continue to do so.
One concern I have is about the money that will likely be spent on staff redundancies that would be much better spent on furthering British priorities overseas. Of course, there are also pressures on the wider network of institutions that further the UK’s interests overseas, such as the British Council and the BBC World Service. Those institutions play a really important role in projecting the UK’s soft power, and require stable and predictable funding. Although more funding has been provided in the supplementary estimates, this follows a long period of damaging uncertainty, which has really weakened our hand.
Inadequate transparency over aid spending has been a persistent theme for the past few years. I am proud of the work my Committee has done to shine a light on where aid cuts have fallen and the impact they have had. I am also extremely grateful to the excellent support provided in this task by my Committee staff and the House of Commons financial scrutiny unit, but we do not do this work alone; independent scrutiny bodies such as the Independent Commission for Aid Impact play a central role in maintaining transparency and accountability and in ensuring that Members have the information we need. I am deeply concerned that ICAI may be axed as part of these cuts, and I hope the Minister can reassure us that I am wrong about that.
This estimates debate sits within a broader shift in the UK’s aid strategy towards investment-led development, which is evident in nearly £0.5 billion funding for British International Investment this year. BII’s model is built on long-term investments rather than rapid humanitarian response, but that raises questions about the breadth of our development portfolio, and whether we are still there to help the poorest of the poor if we do not have the other support that underpins BII.
I thank the Chair of the International Development Committee for her opening remarks, and I echo the sentiments of the hon. Member for Strangford (Jim Shannon). Does she agree that it was extremely disappointing that the previous Government, and indeed this Government, did not follow the recommendation of the International Development Committee that there should be someone from the Foreign, Commonwealth and Development Office on the board of BII—not to make investment decisions, but to ensure it is aligned with Government strategy and policy?
Let me begin with a very specific request to the Minister, which I hope he will be able to grant. My request is for a continuing commitment to Abercrombie House in East Kilbride as the FCDO’s second headquarters. The Government scrapped plans to build a new headquarters in Glasgow, and have so far confirmed that they are staying at Abercrombie House. However, as the International Development Committee has heard, that building requires significant investment, and at a time of such significant cuts in the FCDO budget and, obviously, staffing changes, there is concern about whether this will actually be done.
As a member of the International Development Committee, I now want to turn to the issue of official development assistance and development finance. As the Financial Times has reported, recent analysis from the Centre for Global Development reveals a startling reality: that this Labour Government are presiding over cuts in our overseas aid budget that are not only deeper but faster than those being implemented by the Trump Administration across the water. I cannot believe that that was the objective of a Government who said that they wanted to achieve global leadership in these matters.
I understand the necessity of financial discipline, and, of course, the funding pressures with which the Treasury is wrestling, even if some of them are self-inflicted. I have often argued in the House that we must be pragmatic and strategic with our development resources, looking for where we can make the best and most profound difference. I agree with the Chair of the International Development Committee, the hon. Member for Rotherham (Sarah Champion), that scrapping ICAI, which is monitoring how we obtain value, is the best way to achieve that. There have been some very significant ICAI reports, including the 2020 report that dealt with the extent of the value the Government obtained from investment in nutrition for every pound that was spent. As a champion of nutrition, I have long supported the Child Nutrition Fund. With a relatively modest investment from the UK Government, the fund can leverage philanthropic and private capital while mobilising domestic resources to dramatically improve the wellbeing of millions of women and children. In my view, the child nutrition fund meets the test of public expectations for ODA funding: it puts food in stomachs and jags in arms.
Because I realise that we are in a changing world, I have also supported the IDC’s inquiry into the future shape of aid. We recognise that things will have to be different, but we want to see leadership from the UK Government in this regard, and we want to see a plan. When the UK Government are slashing development spending by some 27% by 2027—outpacing the reduction proposed in Washington, as I have said—one must ask: how does this stack up against other Government objectives, and where is the plan? Whereas the US Congress has acted as a vital check, I see little of the same approach here in the UK, despite the very best efforts of the International Development Committee. As I have said before, if cuts have to happen, they need to be thought through, and that thinking needs to come prior to the cutting. Sadly, that has not been the case. Unless the Minister pulls it out of the hat at the end of this debate, there is no evidence of a plan.
Reductions in ODA were announced over a year ago, but the UK’s future of aid conference will not take place until May this year—if at all, I suspect. In the meantime, services that could be put on a sustainable footing through new and innovative approaches, or through being transferred to capable local partners, are falling over. The change in US policy has significant ramifications, which we should address now, particularly the withdrawal of funding for LGBT and family planning issues. This is most certainly not the time for the FCDO to cut its LGBT budget, as the Elton John AIDS Foundation, among others, has highlighted. We are told that the reductions are to fund our defence capabilities against Russian and, indeed, Iranian aggression. However, the Government must be careful not to create a vacuum of influence and allow malign actors to move in while we do this, as others have already highlighted. One need only look at the example of Russia’s Wagner Group and its operations in Africa, particularly around critical minerals.
As co-chair of the all-party parliamentary group on HIV/AIDS, I want my final remarks to focus specifically on the impact of the changes on the fight against HIV/AIDS. I particularly commend The Independent newspaper and its correspondent, Bel Trew, for highlighting some of these issues. Last November, I was pleased to welcome the Government’s pledge of £850 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria. At a time of tight resources, it offers real value for money by dealing directly with devastating and widespread diseases, but also by building capacity in the health systems of partner countries. The fund can be a crucial pathway to ending dependency, but although £850 million was welcome, it was none the less a £150 million reduction from 2022, and it was also coupled with uncertainty for other organisations, such as the Robert Carr Fund, Unitaid and UNAIDS. The One Campaign expects the shortfall to result in a very tangible 250,000 additional deaths and 1 million new infections. Here in the UK, the Government’s ability to reach our own target of zero new transmissions by 2030 would be imperilled by rising rates of HIV elsewhere. The UK’s life sciences and pharmaceutical sector—for which the Global Fund, among other organisations, is such an important partner—will also suffer.
What that tells us, as we have heard already, is that the reductions come at a cost, particularly if they are not thought through. They come at the cost of influence, the economy and, sadly, lives. At the end of this debate, I want to hear from the Minister what the Government’s plan is. Everybody understands that there will be reductions, but they must be on a planned basis.
There is now a speaking limit of seven minutes.
I start by paying tribute, as all Members of the House have, to our deeply dedicated and professional civil servants in the Foreign, Commonwealth and Development Office. Speaking as a Minister just about to enter his sixth month in the job, I have met nothing but thoroughly professional, decent and hard-working civil servants. In fact, they are a tribute to some of the best parts of UK plc and the civil service. More broadly, I pay tribute, as again every Member has, to the work of teams on the ground across the middle east and their work in response to the Iranian attacks.
I turn first to the shadow Foreign Secretary’ speech and what I will call her list of questions. She tempts me into a wider debate on foreign policy, which, frankly, is her job, and I have enormous respect for her in doing that, but I will bring us back to one particular point on Iran. I can confirm to the House that the Minister for the Middle East has just finished summoning the Iranian ambassador, and I know that will obviously be of interest to her and the whole House. That has taken place in the last 30 minutes.
I will give a brief update on consular assistance—something that is of concern to many Members across the House, including the Liberal Democrat spokesperson. As of 7 am today, 136,582 individuals have registered their presence. The breakdown covers Bahrain, Israel, Kuwait, Palestine, Qatar and the UAE. This is the largest ever response to this service that we have ever had across multiple countries, and it is testament to the significant pressure that the service is experiencing. Diplomats are undertaking this work across the middle east. We have received nearly 4,000 inquiries since the start of the crisis, and on 3 March, almost 1,000 calls were handled just on that one day. With the civil service, we are doing our very best across the middle east to offer as much support as possible, including—for one of the first times in the history of the Foreign Office—external-facing communications to people who register in place. That is an important part of our response.
I will make a bit of progress, but I can assure the right hon. Gentleman that I will give way later.
As you know, Madam Deputy Speaker, I am a pedant for procedure in this House, but I have forgotten something: I thank my hon. Friend the Member for Rotherham (Sarah Champion), and my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry), for securing the debate. I am sorry that I did not thank them at the beginning of my remarks, but the shadow Foreign Secretary tempted me, and I felt the need to bite. I am equally grateful to all other Members for their contributions. One thing I have learned is that my right hon. Friend the Member for Islington South and Finsbury has done a bit of gin-drinking and linen-wearing while travelling with the Foreign Affairs Committee. I need to up my game!
Let me set out and respond to some of the many points raised in the debate. Russia’s ongoing war in Ukraine, mentioned by many Members, including the shadow Foreign Secretary, has fundamentally reshaped Europe’s security landscape. Like many of our allies, we recognise the need to reduce overall reliance on the United States for our defence. Strengthening the UK’s sovereign defence capabilities is essential in this new era. It is in that strategic context that the Government have taken difficult but necessary decisions, although I appreciate that that view is not shared across the House. The Government have taken those decisions in that strategic context, while ensuring that the UK still plays a full part in European security and remains able to protect our people, our interests and our values.
I am known for many courtesies in this House, but I found it slightly disingenuous of the Liberal Democrat spokesperson, the hon. Member for Esher and Walton (Monica Harding), to skip over the fact that a Labour Government introduced ODA funding to begin with, and then gently suggest that the Lib Dems reached the 0.7% target after the 2010 general election. It is not my style to be combative in this House, but I thought that was slightly disingenuous—and I will leave it there.
The Chair of the International Development Committee, my hon. Friend the Member for Rotherham, mentioned the ICAI. I can confirm that no decision has been taken. I appreciate that that will not please her, but we remain totally committed to meeting our statutory obligation, as the independent evaluation of ODA spending is extremely vital for the Government’s work.
The right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell)—I hope I have got the name of his constituency right—asked about Abercrombie House in Scotland. We are committed to maintaining Abercrombie House. In fact, we are considering how other Government Departments could be based on that. I give him that assurance on the record, and I am more than happy to take the conversation away from the Chamber if doing so would be helpful to him.
There have been many questions about a plan, a way forward and the transformation agenda. I do not underestimate the challenges that come with FCDO 2030. Just a few moments ago, I made very clear my support for the civil service in the FCDO—whether on King Charles Street, in Abercrombie House or across the globe—but I have also heard civil servants themselves talk about the need for change in order for the service to be more agile in responding to the global events that many Members have mentioned. There is no hiding from the work that we need to do.
The FCDO needs be equipped to meet challenges today and in the years ahead. The permanent under-secretary of state is leading the transformation programme, to build an organisation that is agile, innovative and equipped to seize the opportunities of the day. They build on deep expertise, which I know is a concern for colleagues, and on the professionalism and commitment that the civil service brings to Britain’s diplomacy and development work every single day. Our workforce reforms are designed to strengthen that foundation, with officials developing a clear sequenced strategy supported by a Department-wide assessment of our skills, capabilities and requirements. I want to stress that point, because Members from across the House have raised the skillset, the institutional memory, and the scale of the knowledge that we bring, across the world, through our diplomatic service. We want to improve those things, not lessen them, and that can be done, among other things, through the skills audit.
As part of that audit, we of course remain committed to maintaining our development capability, but reduced ODA means deploying it with greater precision and impact. It will also mean closing and transitioning programmes in a planned way, drawing on lessons from previous budget adjustments. This includes strengthening the skills we need most for the future, expanding opportunities for specialist development, and ensuring that colleagues can gain the depth of knowledge and experience, both in the UK and overseas, that underpins a world-class diplomatic service. In short, our aim is to build a workforce with the right mix of expertise, regional insight and professional capability to deliver consistently for the UK in a rapidly changing world.
Let me focus on the specific challenge put to me this afternoon: that of development. The Government remain committed to returning to 0.7% when fiscal circumstances allow. We should be proud of the progress made in international development this century, but the world has changed and so must we. The British people and our partners around the world want a new approach to international development—that was raised by my hon. Friend the Member for St Austell and Newquay (Noah Law)—and the phrase “partners not patrons” is testament to where ODA needs to move to. We must listen to the countries that we support through ODA, not dictate the terms of what we think they need. That is important and I know the International Development Committee will agree with it, as will Members across the House.
The days of viewing aid as charity are frankly over. This modernisation is not simply the product of tighter budgets. It reflects what our partners have told us directly: they want support that is more responsive to their priorities, with partnerships focused on better health and education, and on ensuring that their people have opportunities at home. We have listened to that—I have listened, as have the Minister for Development and the Foreign Secretary—and our new approach is designed to match what our partners say they need, not what outsiders think they should have.
The right hon. Member for Dumfriesshire, Clydesdale and Tweeddale spoke about a plan. The new approach is based on four fundamental shifts: it moves us from donor to investor; it moves us away from delivering services ourselves and towards supporting the capacity of our partners to improve their own service delivery; it moves us away from providing grants to offering our expertise; and it moves us from imposing change from overseas to championing local leadership. My hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) raised the latter point with respect to co-operatives, and I was pleased that at the development conference at the beginning of November, I was able to include the crucial work done by the co-operative movement. I reassure him that while I remain in the job, co-operatives will be an extremely important part of how I see development moving forward.
As we progress through the aid budget work, and to announcements on decisions, I confirm that we plan to publish indicative ODA allocations for the next three years shortly. Those three-year budgets will provide the predictability that our teams need—the need for long-term funding allocations has been raised, and I can assure the House that the announcement will come soon. Effectively managing the reduction in aid spending will demonstrate how we intend to put our modern approach into practice. Our development work has never been solely about our aid budget, and access to private investment—the shadow Foreign Secretary raised that—remittance flows, efficient tax systems and trade opportunities are essential foundations for countries to achieve self-reliance. With less money to spend, we must make choices and focus on greater impact, as has been said by many Members. Every pound must deliver for the UK taxpayer and the people we support. The UK remains committed to meeting our statutory obligation on the independent scrutiny of our ODA spending—I am saying that again for emphasis, and to reassure the International Development Committee and its Chair of that work.
Let me come to points raised the hon. Member for Melksham and Devizes (Brian Mathew) and my hon. Friend the Member for Putney (Fleur Anderson) about water, sanitation and hygiene. We have increased humanitarian funding that includes WASH support in both Gaza and Sudan, working with the World Bank and the UN. The shadow Foreign Secretary may see things differently, but I reassure the hon. Member for Melksham and Devizes that that part of our ODA change is about being a player in this space—as an advocate in the room, ensuring that we campaign and lobby for investment within the multilateral space. I also speak as the Minister responsible for multilateral issues, and the change can be a crucial part of such work. We are also supporting several fragile and conflict-affected states to strengthen WASH services, and we have supported more than 700,000 people in Sudan with access to water. I assure the hon. Member and my hon. Friend the Member for Putney that we understand the importance of access to water, and how that can lead to security in the spaces where people are living and on which they are reliant.
The UK will also remain at the forefront of the world in relation to responses to humanitarian crises, particularly in supporting people affected by violent conflict, whether in Ukraine, Gaza or Sudan, and helping displaced people in or near their counties of origin. My hon. Friend the Member for Lewisham East (Janet Daby) raised the right of women and girls to live in a world free from violence, which I know is an issue that she champions. We recognise that human rights, good governance and our work through the preventing sexual violence in conflict initiative are key enablers of our wider FCDO priorities. I cannot stress enough to the House how important this is to both me and the Foreign Secretary. It is vital that we find solutions to the fact that the rape of women, girls and boys is used as a tool of war. I am sure that there would be no dividing line for anybody in the House over the part that the UK Government will play in reducing and, we would all like to hope, ending that practice. We will champion the rights of women.
We will accelerate the global clean energy transition, promoting green and resilient growth and seizing the opportunities for Britain. We will also continue to support countries to build resilient and sustainable health systems, as mentioned by the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale—I seem to be highlighting him today, but I promise I will get to other Members —including through major investments, such as our £1.25 billon pledge to Gavi and our £850 million commitment to the Global Fund to Fight AIDS, Tuberculosis and Malaria. I cannot give the right hon. Gentleman a clearer reassurance than that. This will help to protect millions of children from disease and save well over 1 million lives in the years ahead. All this is underpinned by our commitment to sustainable, inclusive long-term economic development, and it is built on the foundation of our strong relationships with countries around the world and our standing on the global stage.
Let me turn to questions raised by the Chair of the Foreign Affairs Committee, the Chair of the International Development Committee, the right hon. Member for Maldon (Sir John Whittingdale) and others, including the Liberal Democrat spokesperson, the hon. Member for Esher and Walton, about soft power. I know, understand and support utterly and totally the UK’s role in making sure that soft power is relevant and crucial to our wider work within foreign affairs and diplomacy.