The FCO and the Spending Review 2015

Tom Brake Excerpts

Tuesday 1st March 2016 Commons Chamber

[Crispin Blunt]

My hon. Friend will be delighted to hear that that is precisely what my Committee will try to do. Given the way that we are exquisitely balanced, my aim, which is informally supported in discussion by members of the Committee—they cannot be formally bound until the Committee reports, but we all share the objective—is to produce as balanced a piece of work as possible, identifying the factors that the electorate should consider on both sides of the question, but without advising the electorate what weight they should attach to those factors. I hope to complete that work about two months before the referendum, and for the Committee to do a service to the wider public of exactly the type that my hon. Friend identifies, as well as to this House and the reputation of its Committees.

[Tom Brake (Carshalton and Wallington) (LD)]

Does the hon. Gentleman agree that the public are keen that his Committee, and others, re-establish the Committees on Arms Exports Controls? Will he explain why that has not happened yet?

[Crispin Blunt]

It has, and I have already attended that Committee’s first meeting. It is being excellently chaired by the hon. Gentleman—I forget his constituency, which will not help me much, but I have every confidence in the new Chair of that Committee, and when I recall his constituency, I will inform the House.

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[Richard Benyon (Newbury) (Con)]

I congratulate the Chairman of the Foreign Affairs Committee, my hon. Friend the Member for Reigate (Crispin Blunt), and his Committee—albeit perhaps in its previous form—on making a recommendation that the Government have actually listened to. I entirely agree with my hon. Friend the Member for Basildon and Billericay (Mr Baron) that the Chancellor’s announcement on Foreign and Commonwealth Office spending drew a line under the reductions that had taken place over many years. Like many who have spoken in the debate today, I believe that those reductions have damaged Britain’s ability to project soft power.

I have just come from a meeting of the Defence Committee, at which we heard about an organisation called the Conflict Studies Research Centre, which used to be based within Whitehall. It was a Government organisation, but it was cut in a similar way to that described by my hon. Friend the Member for Basildon and Billericay when he talked about our ability to inform the Executive of what was going on. However, I am delighted to say that it has re-emerged in the private sector. With London continuing to be a major hub for international organisations, think-tanks and other sources of expertise in foreign affairs and defence issues, we need to be smarter and more fleet of foot in using those resources—much as similar resources are used in Washington, perhaps rather better than we use ours.

In my capacity as a Minister and subsequently in roles on Select Committees and on the NATO Parliamentary Assembly, I have been privileged to see our Foreign Office posts working abroad and I have huge respect for those who work in them. The programme of post closures was reversed under the coalition Government, and that was very welcome, but I believe that what we have in the Foreign and Commonwealth Office has become broad and shallow. We need to concentrate on finding depth, and I therefore agree with many of the sentiments that have been expressed today. William Hague’s reopening of the language school is a welcome part of the re-engagement with those important skills.

Through Foreign and Commonwealth Office posts abroad, the UK projects soft power. I often see this in my capacity as a trade envoy. Cuts to the FCO are short-sighted. When we engage with countries and build relationships over long periods of time, that is reflected in jobs at home, in exports and in helping our balance of payments. I have seen our influence way exceed expenditure because of the hard work being put into relationships being built with Governments, people of influence and countries. I am kicking the dust off my feet following a trip to Jordan and Lebanon last week with the Defence Committee. I should like to put on record my thanks to those two outstanding posts and to the ambassadors, the defence attachés, the political officers and the security staff operating in those countries. The United Kingdom’s stock is high over there, and we are benefiting from trying to keep those two countries stable in the face of unbelievable threats from over the border in Syria and Iraq.

I want to concentrate on what my hon. Friend the Member for Basildon and Billericay called trouble spots. He perhaps looked back with a degree of Schadenfreude, and in some cases he was justified in expressing that, although in other cases I might question it. In looking at trouble spots, he said that we should look forward and ask where the trouble spots of the future might be. I suggest that a glaring example is a resurgent Russia.

Whitehall had real experts on the Soviet Union throughout the cold war, as my hon. Friend the Member for Reigate said. When the Soviet Union fell, many of those posts were stripped out as the people retired, were let go or moved to other areas of the Foreign Office or other Departments. At that point, our corporate knowledge fell to an alarming degree. I may be straying from the point slightly here, but the Defence Intelligence Service had no Ukraine desk officer at the time of the uprising. It had to borrow one from the South Caucasus desk. I imagine that similar problems existed elsewhere in the Foreign Office as the glaring reality of a major threat to the interests of Britain and NATO suddenly emerged. There is a real need to understand these threats and to examine how we should resource them in the future.

I am not making any excuses for the Soviet Union, but at least in those days there was some kind of group accountability in that country and we did not feel that the regime was simply being run by one individual on his whim. Now, Russia is ruled by one autocratic mega-thief, a kleptocrat of quite staggering proportions who can annex the sovereign territory of another state, who can have people murdered on the streets of London and no doubt elsewhere, and who oversees a regime that murders people such as the lawyer Sergei Magnitsky in prison in Russia. I wonder how many more Litvinenkos and Magnitskys there are. This is a man who can do to parts of Syria what he did to Grozny and who can threaten states that we are treaty-bound to defend under our membership of NATO. This is an individual for whom rules-based governance is anathema. We should therefore govern much of our thinking—and much of the way in which we resource our foreign policy and defence policy—by the use of one clear question: “What would Putin want?”

[Tom Brake]

And what does the hon. Gentleman think Putin would want in relation to the UK’s membership of the European Union?

[Richard Benyon]

The right hon. Gentleman must have read the next page of my speech. I shall answer that question precisely in a moment; I think he will agree with what I have to say.

What President Putin would want first is for the Foreign and Commonwealth Office budget to be curtailed. He would also want a weaker NATO that was riven by infighting and that continued to run down its armed forces, as it has done in years gone by. He would also want a NATO that did not respond to an escalation in aggressive actions against states on Russia’s western border. He has had a bit of bad news in that regard, however, because there has been a reversal in the decline in defence spending, not least by Britain but also by some of our allies. This situation requires massive efforts of diplomacy to keep our alliances moving in the right direction, showing resolve and showing the ability to stand up to the actions of his regime.

To answer the question from the right hon. Member for Carshalton and Wallington (Tom Brake), Putin wants a west in which influential countries such as Britain become less influential. I think the right hon. Gentleman can see where I am going here. Putin wants a weakened European Union. Let us remember that it is the EU, not NATO, that can impose damaging sanctions against his regime. He hates having an economic rule-setter on his western border.

As the leader of the UK delegation to NATO, I recently attended a meeting with other delegation leaders at NATO headquarters. Informally and formally, our allies crossed the floor to ask me, with varying degrees of incredulity, whether Britain was really going to leave the EU. I hope that the Foreign Affairs Committee’s report will look not only at the costs of a possible Brexit but at the impact it would have on the geopolitics of our European foreign policy. These people, including Americans, were coming up to me and saying, “Now? At this time? Really? With all that threatens Europe, economically, militarily and societally?” There is much that our diplomats and intelligence services have to do in the coming years: shore up our alliances, particularly NATO; encourage more spending on defence among our allies; and use all methods, through both our hard and soft power postures, to deter Russia. This is about how we invest; how we work with our allies; and how we exercise our armed forces and show strength.

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[Tom Brake (Carshalton and Wallington) (LD)]

I welcome the opportunity for this debate, and it is a pleasure to follow the hon. Member for Newbury (Richard Benyon). I agree entirely with what he said about President Putin. Others have made these points today, but let me address President Putin directly: esli vy hotite pogovorit' c nami, my budem govorit's vami. I hope he will have heard that message—

[Madam Deputy Speaker (Natascha Engel)]

Order. I hope that was in order, because I have no idea what the right hon. Gentleman just said. If he would translate it for the benefit of those of us who do not speak Russian, I would be very grateful.

[Tom Brake]

I am happy to translate it. I simply said that if President Putin wants to talk to us, we will be very happy to talk to him. The hon. Member for Newbury talked about language skills, which is an important matter, as without them it is difficult to engage effectively with others.

It is a pity that the hon. Member for Basildon and Billericay (Mr Baron) is no longer in his place, because if he had he been, I would have disagreed with him on the subject of Syria. What we know about the situation in Syria is that since the UK Parliament decided not to take action some years ago, a quarter of a million people have died, more than 4 million people have become refugees in neighbouring countries and 7 million people or more have become refugees within Syria. Although we cannot know for certain what the impact of limited UK military involvement might have been, we know and can see in concrete terms the consequences of the failure to take any action.

[Crispin Blunt]

Will the right hon. Gentleman remind the House of what we were being asked to take action for?

[Tom Brake]

I will come back to that—

[Stephen Gethins]

rose—

[Tom Brake]

But I will take another intervention first.

[Stephen Gethins]

I was going to raise a similar point to the one raised by the Chairman of the Foreign Affairs Committee, who discussed the Russians. If we were to take action, what would the consequences of Russian action be? Does this not go to the very heart of the debate we are having about the need to fund the Foreign Affairs Committee properly, in order to address military action?

[Tom Brake]

Indeed. To respond to the earlier point, we were being asked to leave open the opportunity of military action being taken in the future. That is what the debate and the vote were about; it was not a vote about whether we should take military action at that point. It would have left open that opportunity, but because the vote went against leaving open that opportunity, the chance to take military action in Syria was closed down at that point. I agree entirely with the hon. Member for North East Fife (Stephen Gethins) that the whole purpose of this debate is to highlight the importance of funding the Foreign and Commonwealth Office adequately.

[Crispin Blunt]

I think I can help the right hon. Gentleman. We were being invited to take military action in order to deprive President Assad’s regime of its chemical weapons—that was what we were being asked to do. If there was a proposition to do something much wider, that is the one that should have been put to the House.

[Tom Brake]

My recollection may be slightly different from that of the hon. Gentleman, but if I recall it correctly the vote was about leaving open the option of the UK Parliament taking military action at a point in the future, which would have required another vote. The UK Parliament decided at that point to say that it did not want to leave open the option of that future action, and I regret the fact that that decision was taken.

On the European Union, I hope we will be able to engage in a positive campaign on this matter. This is not entirely related to the estimates, but I wonder whether the Minister for Europe has a view about whether the GO—Grassroots Out—campaign is the one that should be pushed forward as the campaign for Brexit, on the basis that it is a good cross-party campaign and is perhaps best placed to represent the Brexit campaign.

I have a suggestion that will cost the FCO absolutely nothing. Once, hopefully, the EU referendum campaign is over and we have convinced the country that we are better off in, I hope to see the Ministers who have quite recently come out in favour of our membership of the European Union occasionally talking about the benefits of our being in the EU. The difficulty over the next four months is that many of those Ministers who have now rightly stated that, on balance, we are better off in the European Union, have previously not highlighted some of the positives involved. This suggestion that Ministers should speak more positively about the EU will have no cost to the FCO.

On Syria, it would be helpful to know exactly what is being built in the budget for what we hope will happen after the ceasefire. If the ceasefire holds, and we get to a position in which there is a degree of stabilisation in Syria, there will clearly be a need for the FCO to make quite a substantial financial commitment to greater involvement in the stabilisation process that should then follow. I hope that we have budgeted for that.

Let me turn now to human rights and the importance of having an FCO policy that promotes human rights. The hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) rightly referred to what the permanent under-secretary had said, which was that human rights

“is one of the things we follow, it is not one of our top priorities.”

He then went on to say in response to a subsequent question that

“right now the prosperity agenda is further up the list”.

I wrote to the permanent under-secretary to get some clarity over what he was saying about human rights and the prosperity agenda. I wanted to know how the two things worked together and whether one had a greater priority than the other. He replied, for which I was very grateful, but he did not comment on his quote, but what he did provide was a useful breakdown of how many people within the FCO, in full-time equivalent terms, work on human rights versus the number of people who work principally on prosperity. The figures are that 240 people work on human rights, against 2,900 people on prosperity. I do not know what is in the estimates from a budgetary point of view, but will the Minister tell us whether there is some sort of forward vision about how that balance might change?

Clearly, there are many, many human rights issues around the world—the Minister will be pleased to know that I will refer to but a few of the things in the thick sheaf I have here—and I want to know the FCO will be fully engaged in that. Let me run through them very quickly. First, on Burma, it is very pleasing that there are developments there, but I know that some of the Burma campaign groups are very worried that, even with the important role that Aung San Suu Kyi is playing, some minority groups are at a greater risk now than they were before. That requires FCO attention.

In Bahrain, we know that the UK Government are working with the prison authorities and the police to improve the regard for human rights, but there are concerns that the policy is not yet delivering the goods. I want to be certain that the FCO is sufficiently resourced to deal with such matters. I could say the same about China as well.

Perhaps the most worrying development—this is where the FCO really does need to invest very heavily to ensure that it has the right number of people in place—is with regard to Saudi Arabia and Yemen. I am really concerned that, at some point in the near future, it will be confirmed that there have been breaches of international humanitarian law. There are enough organisations that have produced evidence to suggest that that is likely to be the case. The FCO will be in a very difficult position. Although the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for Bournemouth East (Mr Ellwood) has repeatedly said that there have been discussions with the Saudis and that assurances have been given, it seems that the evidence points in the other direction. The FCO needs to monitor very carefully the activities of the Ministry of Defence, which is responsible for assessing whether IHL has been broken. It would be in no one’s interests to find out subsequently that, in fact, IHL had been broken in relation to the activities of the Saudis in Yemen.

I am pleased to hear that, perhaps without great fanfare, the Committees on Arms Export Controls has been re-established. I hope that, at its first inquiry, it will look at the question of UK arms sales to Saudi Arabia, because that is the most pressing problem.

I could also mention human rights issues in Sri Lanka, which remain a priority for the Tamil community. There is also the matter of the human rights of the Ahmadi Muslim community in various countries around the world where they are often put under pressure.

I will finish by saying that the investment that we make in the FCO, whether it is hard investment in terms of our presence around the world or the soft power to which many Members referred, must be a priority for us. It helps us to punch above our weight and to ensure that the UK, whether it is through the British Council or our embassy presences around the world, is a major player on the world stage. I would like to ensure that that continues.

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[Mr Lidington]

If my hon. Friend is expecting to reopen the debate on field sports, I will definitely disappoint him. That is one of the subjects on which I will write to him and the hon. Member for Glasgow North.

The Foreign Affairs Committee report, published on 20 October last year, came before the publication of the spending review, the national security strategy and the new development strategy in November last year. The report was important, because it contributed to an extremely vigorous public debate about the importance of continuing to invest in our diplomatic resources.

As a number of hon. Members noted, the Chancellor responded in his spending review. He noted in his statement in this place the crucial role of what he described as “our outstanding diplomatic service”, and he announced that the Government would protect the budget of the Foreign and Commonwealth Office in real terms. That is important because, as right hon. and hon. Members across the House have said, an effective and expert diplomatic service is an important element in allowing this country to respond to the international challenges that we face to our interests.

Now, there is no avoiding the fact that, despite that commitment to protect the FCO’s budget in real terms, my right hon. Friend the Foreign Secretary will still have difficult decisions to take about relative priorities in the Department, but that is no more than the challenge that would confront any Secretary of State. We would all like to feel that the budgets available to us were unlimited; in the real world, however, those budgets are finite, and they are constrained by the Government’s overall need to bring down the deficit and address this country’s long history of living beyond its means in terms of the public finances.

The Future FCO review, about which my hon. Friend the Member for Reigate asked me, is designed in part to find ways in which we can secure our objectives as a Department by doing things differently. I have talked briefly to the reviewer, who is also speaking to other Ministers and senior officials, and the purpose of the review is to advise Ministers and senior officials on how the FCO can be more expert, more agile and more focused on its key priorities than it is at the moment.

I expect the review to be in a position to set out its conclusions later this year—by the end of the spring, I hope. We intend there to be a clear vision of how the FCO should look by 2020, so that we can implement changes in the Department to enable us, within the priorities and resources we have, to secure our objectives more effectively and more efficiently than in the past. We also hope that the review will ensure that, where efficiencies can be made, the savings can be channelled straight back into serving the core objectives that the Foreign Secretary has set.

My hon. Friend asked about the spending review letter. The Government’s policy in respect of all Departments is not to publish settlement letters. There is plenty of public information in the spending review documentation and the Chancellor’s speech and answers. The letters are part of ongoing policy discussions, so it is not appropriate that they should be in the public domain at this time.

The overall resource departmental expenditure limit for the FCO will rise in line with inflation in each of the four years covered by the spending review, increasing our funding from £1.1 billion in 2015-16 to £1.24 billion by 2019-20. We believe that this settlement will enable the Department to maintain our world-class diplomatic service, including our network of posts around the world, which host not only the FCO but 32 other Government Departments and agencies. That global presence and continued foreign policy leadership in Whitehall by the FCO will serve to protect our national security, promote our prosperity and project the UK’s values overseas.

In line with the Government’s commitment to spend 0.7% of gross national income on development assistance, the FCO will be allocated additional ODA-eligible resources, more than doubling our spending from £273 million to £560 million in 2019-20. That will enable us to pursue our key foreign policies and to deliver the ambitions set out in the national security strategy and the development strategy.

The hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) asked, very reasonably, how we reconciled the priorities of different Departments and ensured that, as far as possible, they incorporated within an overall agreed Government approach. The answer, in part, is that there are frequent conversations between Ministers in the different Departments dealing with external affairs and between their officials. However, in the broadest sense, the strategic direction on the key elements of the United Kingdom’s external policy is set after discussion by the National Security Council, chaired by the Prime Minister. The NSC brings together the Prime Minister, the Foreign Secretary, the Chancellor, the International Development Secretary, the Defence Secretary and other interested Ministers precisely so that we can agree on an approach that harnesses the different skills of all Government Departments and, at the same time, establishes which Departments are to contribute which resources to that common objective.

The settlement includes increased spending to support the UK’s overseas territories. In order to meet our long-standing commitment to address their reasonable needs, the FCO will co-ordinate a new strategy for the overseas territories and chair a new director-level board to co-ordinate cross-Government activity. Furthermore, as announced by the Prime Minister during the Commonwealth Heads of Government meeting in Malta in November last year, the United Kingdom will host the next such Heads of Government gathering in 2018, and the FCO will co-ordinate that event.

The spending review settlement provides the same budget for Chevening scholarships as in 2015-16 of £46 million per year. Over its 32-year history, that scholarship scheme has built up a large and influential alumni network aligned with the interests of the United Kingdom, and this funding will ensure that that continues.

A number of hon. Members asked about language training and language skills. The FCO language centre was reopened in September 2013 to renew the focus on and investment in languages as a core diplomatic skill, and ensure that we get the right people with the right skills in the right jobs to deliver our objectives. As a priority, we will allocate new funds to improve Mandarin, Russian and Arabic language skills. In 2015, we trained 34 staff in Arabic, 14 in Mandarin and 24 in Russian, as well as 35 in French and 28 in Spanish. I completely accept that more needs to be done, but we are making progress, and there is a very clear commitment to continuing to develop language skills.

In addition, the Foreign and Commonwealth Office will spend up to £24 million over the next four years to increase the presence of its counter-terrorism and extremism experts overseas. In sum, our budget will allow us to focus on our key foreign policy objectives, including tackling Daesh and ensuring security in Europe. It will also allow us to do even more to prevent conflict and encourage stability in fragile states. My right hon. Friend the Foreign Secretary has made it clear that the Department will need to become leaner and build on its core strengths, and reinvest and refocus resources on new priorities. That is the reason for the review, about which I have already spoken, and it is also what lies behind the creation of a new digital transformation unit, the purpose of which is to ensure that FCO officials have access to the latest techniques for using modern technology in their work. After a year in operation, the diplomatic academy is already boosting both broader policy capability and specialist skills.

My hon. Friend the Member for Reigate (Crispin Blunt) asked about the tech overhaul programme. We are planning for its global deployment from 2016 to 2018, and a headline figure of £105 million has been agreed by the FCO board. We believe that the overhaul will provide greater speed, stability and reliability, and, partly by reducing the time currently lost because of inadequate IT systems, increase the productivity of staff members. We are using our IT partner, BAE Systems, to help deliver the tech overhaul to industry best practice standards.

A number of hon. Members asked about human rights. We have taken action to mainstream human rights across the FCO network. The issue remains a priority, but we believe that, rather than it being ring-fenced for a few specialist staff, it should be the responsibility of all British diplomats. More detail of our approach has been provided in our written evidence to the Foreign Affairs Committee’s human rights inquiry, to which my right hon. and noble Friend Baroness Anelay gave evidence on 24 February.

[Tom Brake]

The Minister has mentioned mainstreaming the issue in the FCO, but, as I said earlier, there are 240 people working on human rights, versus 2,900 people working on prosperity. Does he expect that ratio to change significantly?

[Mr Lidington]

The difficulty with providing numbers is that we are talking about not only people who will be in post, but people in desk offices in London who will spend part of their time on human rights and other parts of it on prosperity and advancing British economic interest. I do not think there is a contradiction between the two. When I talk to British businesses about possible investment markets, they frequently tell me that when they assess investment opportunities in a particular country, one of the criteria they use is how good the rule of law is in that country. From a business point of view, they do not want to take the risk of putting money into a place and then finding that, because of corruption, their money, licence or permit is revoked at the behest of some political leader. This is not guaranteed, but a country with an effective rule of law of the kind that will attract inward investment is more likely to have genuinely independent courts and to respect the rights of individuals, so I think that the two go together.

In addition to its resource allocation, the FCO will be provided with a flat cash settlement of £98 million of capital funding per year, to invest in our estate. That will provide further investment across the estate, to maintain our global network and to keep diplomats and other Government staff safe while they work for the UK abroad. Additional capital requirements will be funded from asset sales and the recycling of receipts and, where necessary, through recourse to the reserve.

I have been asked about cross-Whitehall funds. I can confirm that the Government’s spending on international priorities will increase further, with a larger conflict, stability and security fund, a new prosperity fund and more funding for both the British Council and the BBC World Service. The CSSF, through which the FCO funds much of its conflict prevention work, will grow by 19% in real terms by 2019-20 to a total of £1.5 billion a year. That will strengthen our ability to support stabilisation in countries such as Syria, Ukraine, Somalia and Afghanistan, and it will strengthen our response to serious transnational threats, including extremism, serious and organised crime, and illegal migration.

In the conflict, security and stabilisation fund allocations for 2015-16, £400 million were allocated to countries eligible for official development assistance and £633 million to non-ODA countries. The new prosperity fund will be worth £1.3 billion over the next five years, and it will be used to support global growth, trade and stability. That will help us to reduce poverty in emerging and developing countries, and it will open up new markets and opportunities to the United Kingdom. Our diplomatic network helps to facilitate deals for trade and inward investment, to tackle barriers to our own businesses, and to promote open economies and a rules-based international system, which will benefit British business now and in the future.

Funding for the British Council will be protected in real terms, but there will need to be a shift in the balance between ODA and non-ODA funding to support an expansion of the council’s work in developing countries. In addition, the British Council will be able to bid for up to £700 million in additional funding to improve links with emerging economies, help to tackle extremism globally and support good governance.

I was asked about the Department’s human rights work through the Magna Carta fund, and about the balance between ODA and non-ODA countries. The Magna Carta fund has 47 priority countries, the overwhelming majority of which are ODA countries—developing countries. There are four non-ODA countries: Saudi Arabia, Bahrain, Russia and Israel. Those four, as well as being eligible for support from the Magna Carta fund, are eligible for funding streams such as the Arab partnership fund and the CSSF.

I think there has been agreement across the House that a strong diplomatic service and worldwide network are essential for this country to maintain its position in the world. I believe that the Government’s commitment to protect the Foreign and Commonwealth Office budget and provide additional funds for cross-government international activity will ensure that we are able to play a pivotal role, both bilaterally and through the membership of the many international and multilateral organisations of which we are part, in tackling the most important global challenges.

Without wanting to stray too far from the subject matter, I will simply say that I agreed completely with the point made by my hon. Friend the Member for Newbury (Richard Benyon) about how we can amplify the United Kingdom’s diplomatic reach through our active membership of the European Union. I am therefore confident that the outcome of the spending review is good not only for the Foreign and Commonwealth Office and British diplomacy, but, most importantly of all, for the interests of the people of the United Kingdom.