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Defence, diplomacy and international development - Spending Review

  • Published: Thursday, 21 October 2010

A summary of the reforms to defence, diplomacy and international development announced in the Spending Review of 20 October 2010.

Defence

The Chancellor announced that the Ministry of Defence will reduce spending by 8 per cent in real terms over the Spending Review period.

On top of this settlement, the government will continue to fully fund the net additional costs of military operations in Afghanistan from the Treasury Reserve.

Spending will be based around the priorities outlined in the Strategic Defence and Security Review, published on 19 October 2010. This review includes decisions on the country's defence, security, intelligence, resilience, development and foreign affairs capabilities.

Diplomacy and international development

The Foreign and Commonwealth Office budget will be reduced by 24 per cent in real terms over the Spending Review period.

It will maintain the global network, but re-focus resources to key trade partners to win exports and secure jobs at home, by working closely with UK Trade and Investment (UKTI).

It will contribute to reducing the deficit by cutting administration by a third. It will do this by cutting back on costs in Whitehall and centralising global back-office operations in Milton Keynes.

The Department for International Development's budget will rise to £11.5 billion over the next four years.

The government will meet the commitment to spend 0.7 per cent of Gross National Income (GNI) on Official Development Assistance (ODA) from 2013.

DFID's administration budget will be cut by 33 per cent in real terms, so that running costs will account for 2 per cent of spending by 2014-15.

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