Second Report: Merging success: Bringing together the FCO and DFID

Select Committee
Foreign Affairs Committee HC 525 23 July 2020
Report Status Government responded
Conclusions & Recommendations 16 items (15 recs)
Source View on Parliament website
Government Response (AI assessment · 16 of 16 classified)
Accepted 4
Accepted in Part 4
Acknowledged 2
Deferred 3
Not Addressed 3
Government response
Sixth Special Report: Merging success: Bringing together the FCO and DFID : Government Response to Committee’s Second Report · published 24 Sep 2020
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Recommendations & Conclusions

16 results
1 Recommendation Deferred
Para 8
Given the gap between the merger and the reporting date of the Integrated Review, the...
Recommendation
Given the gap between the merger and the reporting date of the Integrated Review, the FCDO risks operating for months without clear strategic direction, which will be compounded by the likely productivity dips which follow departmental mergers. The FCDO is … Read more
Government Response Summary
The government states that the FCDO's strategic objectives will be shaped by the outcomes of the Integrated Review and Comprehensive Spending Review, not committing to a September publication deadline or specific parliamentary consultation beforehand.
Foreign, Commonwealth & Development Office
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2 Recommendation Acknowledged
Para 10
For the Government to deliver on its stated aim of more accountable development spending with...
Recommendation
For the Government to deliver on its stated aim of more accountable development spending with a greater focus on the national interest, it should establish and deliver on a clear strategy for communicating its interpretation of the ‘national interest’ to … Read more
Government Response Summary
The government acknowledges its commitment to the national interest and general parliamentary scrutiny, stating the FCDO will report to Parliament through usual methods, but does not commit to a specific new strategy or regular reporting on its interpretation of the 'national interest'.
Foreign, Commonwealth & Development Office
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3 Recommendation Not Addressed
Para 12
The FCO and DFID have shared ministers since February 2020, which may provide the model...
Recommendation
The FCO and DFID have shared ministers since February 2020, which may provide the model for ministerial portfolios in the new Department. However, it is not yet clear how many Ministers will serve in the new Department, whether the existing … Read more
Government Response Summary
The government states that the existing FCO and DFID joint ministerial team is continuing in their roles with previous portfolios to ensure continuity, thereby not publishing a list of expected ministerial roles or their reasoning by the specified date.
Foreign, Commonwealth & Development Office
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4 Recommendation Not Addressed
In the interests of accountability, the Government should explain the process that led to the...
Recommendation
In the interests of accountability, the Government should explain the process that led to the decision to merge the FCO and DFID. We ask that the Government publishes the findings of its consultation, including a list of contributors and the … Read more
Government Response Summary
The government did not explain the process leading to the merger or commit to publishing consultation findings, a list of contributors, or timeframes, stating that the merger decision is a matter for the Prime Minister.
Foreign, Commonwealth & Development Office
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5 Recommendation Accepted in Part
To integrate the Departments successfully, the new PUS must have the skills and experience necessary...
Recommendation
To integrate the Departments successfully, the new PUS must have the skills and experience necessary to effectively oversee both diplomatic and development projects. Above all else, they must have exceptional knowledge and experience of change management and major project delivery … Read more
Government Response Summary
The government states that many of the recommended selection criteria were used for the new Permanent Under-Secretary. However, it rejects the recommendation for pre-appointment hearings for the role, stating it is not appropriate for a Civil Service appointment.
Foreign, Commonwealth & Development Office
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6 Recommendation Deferred
Para 19
The strength and reputation of the UK’s world-class aid delivery is in large part due...
Recommendation
The strength and reputation of the UK’s world-class aid delivery is in large part due to the skills and experience of DFID staff. We recommend that the Government makes staff retention a priority and implements a clear strategy for retaining … Read more
Government Response Summary
The government initiated a staff engagement programme and plans to invest in learning opportunities to retain DFID staff expertise. However, it states it is too early to precisely harmonise remuneration differentials between departments, expecting it to occur after the next Spending Review.
Foreign, Commonwealth & Development Office
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7 Recommendation Accepted in Part
Para 21
We welcome the Foreign Secretary’s assurance and his pledge to engage with staff throughout this...
Recommendation
We welcome the Foreign Secretary’s assurance and his pledge to engage with staff throughout this process, but clarity on the nature of future roles is needed as soon as possible. We recommend that the Government presents a clear plan to … Read more
Government Response Summary
The government confirms there will be no compulsory redundancies in the new FCDO, and staff who previously would not have met nationality requirements will transfer into their current roles. However, long-term decisions on nationality requirements are deferred pending an ongoing review.
Foreign, Commonwealth & Development Office
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8 Recommendation Acknowledged
Para 23
Diplomacy and development require different but complementary skillsets; it is vitally important that staff are...
Recommendation
Diplomacy and development require different but complementary skillsets; it is vitally important that staff are clear on what specific skills staff will need to develop in order to undertake their responsibilities effectively and to progress in the new Department. Early … Read more
Government Response Summary
The government states it is prioritising learning and development opportunities to build staff capability and skills, but does not commit to outlining a specific programme for wellbeing support and training by the recommended September deadline.
Foreign, Commonwealth & Development Office
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9 Recommendation Accepted
We welcome work being done to increase in-country collaboration, and believe that in-country leadership of...
Recommendation
We welcome work being done to increase in-country collaboration, and believe that in-country leadership of projects should be enhanced, not diminished. The new Department has the opportunity to build on examples of excellent in-country work completed by both the FCO … Read more
Government Response Summary
The government confirmed that Ambassadors will lead all UK government work in host countries, supported by locally appointed staff, and the FCDO will continue to embed country and regional expertise in its programming.
Foreign, Commonwealth & Development Office
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10 Recommendation Accepted in Part
The merger presents an opportunity for the FCO to learn from DFID’s positive record on...
Recommendation
The merger presents an opportunity for the FCO to learn from DFID’s positive record on transparency, and to be more proactive in publishing details of project expenditure. We recommend that the UK sets ambitious new commitments to aid transparency, to … Read more
Government Response Summary
The government commits to maintaining the Development Tracker tool and consolidating data systems for aid transparency, while stating it anticipates FCDO will be assessed in the next Aid Transparency Index in 2022. It does not explicitly commit to ambitious new transparency commitments or striving for a 'Very Good' score in the FCDO's first year.
Foreign, Commonwealth & Development Office
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11 Recommendation Accepted
Para 30
To ensure this goal is achievable, all staff in the FCDO working on development should...
Recommendation
To ensure this goal is achievable, all staff in the FCDO working on development should have a thorough understanding of the international aid transparency frameworks and standards they are working towards. We recommend that all FCDO staff working on development … Read more
Government Response Summary
The government commits to ensuring FCDO staff will have access to information and training on transparency commitments and the IATI standard as part of their standard training for Official Development Assistance (ODA) delivery.
Foreign, Commonwealth & Development Office
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12 Recommendation Accepted
Para 31
We believe that, as the Government is maintaining its commitment to spending 0.7 percent of...
Recommendation
We believe that, as the Government is maintaining its commitment to spending 0.7 percent of GNI on ODA, the current level of scrutiny on ODA spend should also be maintained. The Independent Commission for Aid Impact (ICAI) has shown itself … Read more
Government Response Summary
The government committed to maintaining ICAI and broadening its mandate to provide policy recommendations. It acknowledged Parliament's role in scrutiny and stated that the structure of select committees is a matter for Parliament, though the PM expects a new committee for the FCDO.
Foreign, Commonwealth & Development Office
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13 Recommendation Accepted in Part
Para 33
The Government has made clear that the intention of the merger is not to save...
Recommendation
The Government has made clear that the intention of the merger is not to save costs but has suggested better value for money is available through it. This could be through reducing administrative costs. We recommend that the Government reports … Read more
Government Response Summary
The government agrees on the importance of recording and reporting merger costs and savings, stating work has commenced on monitoring short-term costs. They expect to publish figures in the FCDO’s annual report and accounts for 2020–21, but indicate more time is needed to determine a clear picture, implicitly not meeting the requested six-month post-merger timeline.
Foreign, Commonwealth & Development Office
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14 Recommendation Not Addressed
Para 34
Ministers have suggested that the merger will deliver better value for money on overseas spending...
Recommendation
Ministers have suggested that the merger will deliver better value for money on overseas spending of UK taxpayer money, but have not clarified how this greater value will be delivered. The Government should provide a detailed explanation of how this … Read more
Government Response Summary
The government did not provide a detailed explanation of how the FCDO merger will deliver greater value for money or how this conclusion was reached, instead reiterating that the primary purpose is policy alignment and greater effectiveness.
Foreign, Commonwealth & Development Office
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15 Recommendation Deferred
Para 36
As the aim of the merger is to harmonise UK foreign and development policy, it...
Recommendation
As the aim of the merger is to harmonise UK foreign and development policy, it is essential that the Government does not focus solely on the ODA spend of the FCDO, but ensures that the new Department has responsibility for … Read more
Government Response Summary
The government deferred the request to set out how ODA spending by other departments will support UK international objectives, stating that this will be addressed in conjunction with the Integrated Review and Spending Review.
Foreign, Commonwealth & Development Office
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16 Conclusion Accepted
It is also important that the alignment in aid and diplomacy is not used as...
Conclusion
It is also important that the alignment in aid and diplomacy is not used as an excuse to roll back the reforms that have ensured the UK’s IMF and World Bank positions are still staffed by individuals with experience of … Read more
Government Response Summary
The government accepted the conclusion, agreeing that IMF and World Bank positions should continue to be staffed by individuals with relevant expertise and that FCDO will house the necessary aid, policy, and programme management expertise.
Foreign, Commonwealth & Development Office
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