18 July 2000
SR2000/FCO
Quicker response to global foreign policy issues
Faster and more reliable secure communications to aid a quicker and more co-ordinated response to global foreign policy issues is promised with the help of a 5.1 per cent real increase in resources over the next three years, announced today by the Chancellor, Gordon Brown.
The Foreign and Commonwealth Office will be implementing a radical programme of modernisation made possible by a comprehensive upgrading of its information technology systems.
Foreign Secretary Robin Cook said:
"I am delighted with this significant increase in funding, enabling us to invest in modernising our diplomatic capabilities and so deliver more for Britain abroad, while also tackling the remaining problems created by the cuts imposed on the BBC World Service and the British Council in the mid-1990s.
"With the extra money we shall invest in a modern, secure, efficient and effective IT and communication system, the most radical transformation of the way the FCO works since the invention of the telegram. This will enable us to pursue UK interests more effectively and to improve our commercial, consular and entry clearance services to business and the public. I am especially pleased that we shall be able to build on British Trade Internationals successful launch.
"Our Public Diplomacy work will receive a major boost from the additional resources we have secured for the BBC World Service and the British Council. The BBC World Service will be able to replace ageing short wave transmitters and expand on-line and FM broadcasting services. The British Council will be able to establish new knowledge and learning centres and intensify its work in, for example, Russia and China."
FCO expenditure including diplomatic, commercial and consular and entry clearance work will rise to £1,143 million in 2001/02, to £1,198 million in 2002/03 and to £1,238 million in 2003/04. Expenditure on the BBC World Service and the British Council will also increase, to £180 million in 2001/02, £199 million in 2002/03 and £210 million in 2003/04 for the World Service and £143 million in 2001/02, £152 million in 2002/03 and £159 million in 2003/04 for the Council.
The increased funding will enable the FCO, including British Trade International, to increase its investment in new information technology and security upgrades by £10 million in 2001-02, £21 million for 2002-03 and £31 million for 2003-04. As well as improving diplomatic capabilities, this will secure important benefits for consumers of the commercial, consular and entry clearance services. This will be reflected in a new Public Service Agreement.
Funding is also being provided to increase the FCO's effort on European issues, enabling better and more effective lobbying with all EU institutions and further enlargement. This will equip the FCO to continue to deliver on European issues and to influence EU developments.
Additional resources will allow British Trade International, through Trade Partners UK and Invest UK, to provide an integrated customer-focused service to British companies and inward investors.
The FCO will participate in new arrangements for handling cross-cutting issues, including conflict prevention, cleaning up nuclear waste in the former Soviet Union, and the fight against illegal drugs. The Foreign Secretary will chair the inter-departmental Committee on Conflict Prevention outside of sub-Saharan Africa. This will improve the Government's ability to deal with threats to UK interests.
The FCO has set itself an ambitious 3 per cent efficiency target, to deliver better value for money for taxpayers and produce savings to help fund modernisation. Its capital investment programme will also benefit from up to £100 million of recycled receipts from the disposal of under-performing or surplus assets.
Notes for editors
1. Key figures:
| £ million | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
| Total FCO* | 1087 | 1143 | 1198 | 1238 |
| of which: Resource Budget | 965 | 1006 | 1036 | 1065 |
| Capital Budget | 122 | 137 | 162 | 173 |
includes: BBCWS | 174 | 180 | 199 | 210 |
| British Council | 136 | 143 | 152 | 159 |
| * Departmental Expenditure Limit | ||||
2. Figures do not include the global cross-cutting conflict prevention budget of £60m/£68m/£78m.
3. The FCO's baseline has been reduced by £32.8 million to reflect its contribution to the pooled budgets on conflict prevention, peacekeeping, and nuclear waste clean-up in the former Soviet Union.
4. For more details contact the FCO Press Office on 020 7270 3909.