SR2002/FCO
15 July 2002
European enlargement, worldwide engagement
The Foreign Office received a boost today, as the Chancellor announced substantial increases in funding for Britain's international agenda, with £219 million more in 2005-06 than 2002-03.
A key part of the package is the new ?Global Opportunities Fund? that provides £120 million over the next three years to help promote global security and sustainable development. In a boost to UK universities, additional funding will be earmarked for Chevening Scholarships for outstanding students from overseas, to meet the Prime Minister's 1999 target of 3,000 scholarship places by 2005.
The FCO package included specific increases for the BBC World Service and the British Council. Spending on the World Service will be £38 million higher in 2005-06 than in 2002-03, to fund increased broadcasts to the Arab World, Africa and Europe. Reinforcing success, this includes additional funding for the award-winning World Service on-line services, and for capital modernisation.
Spending on the British Council will be £28 million higher in 2005-06 than in 2002-03 to increase engagement with the Islamic world through their new "Connecting Futures" programme to increase mutual understanding and dialogue between young people in the UK and the Arab and Islamic world. The Council will also increase the number of Knowledge and Learning Centres, and provide additional support to the Centres for English Language Learning Support.
The Foreign Secretary noted:
"I welcome this settlement - it underlines the importance that the Government attaches to the FCO and Britain's global role. Specifically, the Global Opportunities Fund allows us to focus in Europe on our new EU partners and the EU's newest neighbours after EU enlargement in 2004. Worldwide, it will expand programmes in economic reform, human rights, good governance, and promoting political pluralism."
Mark Byford, Director of the BBC World Service commented:
"This is a good settlement for the World Service. It's a strong endorsement from the government of the quality and impact of the World Service. It will enable us to improve services in key areas, expand our FM presence, develop our successful on-line capability and support our important capital modernisation."
Helena Kennedy QC, Chair of the British Council said:
"This is excellent news for the British Council, and it demonstrates the Government's strong commitment to public diplomacy. The settlement will allow us to increase our work in Eastern Europe, Africa and the Arab and Islamic world, engaging even more people with the UK's values, ideas and achievements."
Enhancing Public Diplomacy
- Spending on the Foreign and Commonwealth Office (excluding conflict prevention) will be £219 million higher in 2005-06 than 2002-03, a real terms increase of 2.8 per cent per annum.
- Additional funding for the BBC World Service provides new services to the Arab world / South West Asia, Africa, China and Europe. Investment funding provides increases to on-line, FM rebroadcast and capital modernisation.
- Increased funding for the British Council for public diplomacy, working with communities in Britain and in the Islamic world to foster increased understanding of Britain amongst young Muslims. Building on funding from the 2000 spending review, the Council will build more Knowledge and Learning Centres.
Notes for editors
1. The FCO's SR2002 settlement (excluding conflict prevention) is the largest since the end of the Cold War and provides an additional £219 million total DEL by 2005-06, compared to 2002-03. This increase represents 2.8 per cent annual average growth after inflation over the period to 2005-06.
| £ million | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
| Foreign and Commonwealth Office | ||||
| Resource Budget | 1,327 | 1,446 | 1,503 | 1,581 |
| Capital Budget | 112 | 132 | 136 | 143 |
| Total Departmental Expenditure Limit1 | 1,347 | 1,452 | 1,502 | 1,572 |
| BBC World Service1 | 201 | 220 | 225 | 239 |
| British Council1 | 157 | 170 | 175 | 185 |
| Conflict Prevention1 | 68 | 74 | 74 | 74 |
| Near-cash spending in FCO DEL2 | 1,262 | 1,364 | 1,411 | 1,477 |
1. Full resource budgeting basis, net of depreciation.
2. Consistent with previous control basis.
2. The Foreign and Commonwealth Office is responsible for the conduct of the UK government's relations with other governments and a range of international institutions. It also provides assistance and protection to UK citizens abroad and promotes UK commercial interests overseas via British Trade International (BTI, which is shared with the Department of Trade and Industry). The FCO does so through a network of 232 posts overseas.
3. The British Council has an important role in promoting the UK's cultural relations with other countries, including recognition for UK values, ideas and achievements. It undertakes a range of programmes in areas such as education and language training and is funded by the FCO and income from language teaching and other activities.
4. The BBC World Service is a respected international broadcaster that offers a range of services, including FM broadcasts in key overseas cities and has a growing on-line presence.
5. The Foreign and Commonwealth Office, the Ministry of Defence and the Department for International Development jointly manage the Global conflict prevention pooled budget. It funds a range of programmes overseas intended to reduce conflict in key areas, including by geographical region (e.g., the Balkans) and by theme (e.g., reducing the number of small arms in circulation).
6. The Government conducted a comprehensive review of public services - the Comprehensive Spending Review - in 1998. The 2000 Spending Review built on this by setting targets and allocating resources for the three years to 2003-04. The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.
7. For further details please contact the FCO Press Office on 020 7270 3100 or visit the FCO website at www.fco.gov.uk.