UNCLASSIFIED. Foreign & Commonwealth Office Main Estimate Memorandum for the Foreign Affairs Committee

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1 Foreign & Commonwealth Office Main Estimate Memorandum for the Foreign Affairs Committee Introduction 1. The Foreign and Commonwealth Office Estimate has the following sections: Section A: Expenditure by the Foreign and Commonwealth Office (FCO), on its administration, strategic and bilateral programmes, FCO Services, Wilton Park Executive Agency, hospitality and facilities; scholarships, information services and sponsored visits; special payments and assistance programmes to support foreign policy objectives including human rights, good governance, international security and the fight against the illicit drug trade; and on associated non-cash items; Section B: Grants to international organisations and other bodies supporting FCO objectives and programmes; Section C: Resource grant to the British Council; Section D: The net expenditure of FCO sponsored Arm s Length Bodies (ALBs) in particular the Westminster Foundation for Democracy, the Marshall Aid Commemoration Commission and the Great Britain China Centre; Section E: Grant expenditure by the Foreign and Commonwealth Office on conflict prevention, early warning, crisis management, conflict resolution/peacemaking; Section F: Grant expenditure on peacekeeping and peace building activity and on associated strengthening of international and regional systems; Section G: AME non-cash expenditure on impairments, provisions, foreign exchange; and Section H: AME grants to refund certain taxes and duties paid by certain Foreign and Commonwealth governments. Main Estimates Changes Machinery of Government change 2. The FCO has transferred 2,797,000 (administration) funding for its European Union functions to the Department for Exiting the European Union (DEXU) following the Machinery of Government change (Section A) that took effect on 14 July Treasury allocations 3. In 2016 Treasury revised DEL depreciation and impairments assumptions used in Spending Review The Spending Review settlement provisionally rolled forward the baseline which was inflated due to capital investment arising from work on the FCO UK and Overseas Estate. The 2016 revision lowered non-cash DEL across all Spending Review years leading to a reduction of 68,517,000 (programme) non-cash in (Section A). We may need to revise non-cash further in the Supplementary Estimate. There has been a Capital DEL uplift of 33,000,000 for receipts banked in (Section A) and rolled forward into Treasury have also contributed 1,500,000 (administration) for International Trade officers as announced in the Autumn Statement 2016 (Section A).

2 Budget cover transfers 4. There are two major transfers (programme) from Department for International Development (DFID), 435,858,000 for conflict prevention (Section E) and 372,232,000 for peacekeeping (Section F) both funded from the Conflict, Stability and Security Fund (CSSF). There is a further major transfer from DFID of 96,200,000 (programme) Resource DEL for Official Development Assistance (Sections A and B). There is also a net transfer to the FCO of 14,220,000 (programme) in respect of redistribution of charges for use by other government departments of the FCO s overseas platform, details by department are listed in Table 1 below. The platform costs of the British Council and some smaller departments will be met directly by the FCO from the 14,220,000 net transfer (Section A). Other transfers included in the Main Estimate are: A transfer of 70,000,000 Resource DEL from DFID for the BBC World Service (Section B); A transfer of 28,000,000 Resource DEL from DFID for Chevening Scholarships (Section A); A transfer of 23,000,000 Resource DEL from DFID for the British Council Grant (Section C); A transfer of 5,000,000 Resource DEL to Cabinet Office for the Commonwealth Heads of Government meeting (Section A); A transfer of 3,442,000 Capital DEL from the Department for Business, Energy and Industrial Strategy (BEIS) in respect of the Science and Innovation Network (Section A); A transfer of 2,000,000 Resource DEL from DFID as the 1 st tranche of the Prosperity Fund monies due to the FCO in (Section B); A transfer of 1,000,000 Resource DEL from DFID as the 1 st tranche of the Empowerment Fund monies due to the FCO in (Section B); A transfer of 2,500,000 Resource DEL from Ministry of Defence (MOD) in respect of Falkland s demining (Section A); A transfer of 971,000 Resource DEL to Department for International Trade (DIT) for charged services (Section A); A transfer of 500,000 Resource DEL to Department for Environment Food and Rural Affairs (DEFRA) for the Darwin Plus climate change initiative in respect of Overseas Territories (Section A); A transfer of 100,000 Resource DEL from DIT for the Israeli Tech Hub (Section A); A transfer of 120,000 resource DEL from DFID in respect of Lesbian, Gay, Bisexual and Transgender (LBGT) rights work in Uganda (Section A). 5. No departmental activities are expected to be reduced as a result of the above transfers. Transfers between government departments are a routine occurrence and are incorporated in the normal budgeting process.

3 Reconciliation of Main Estimates to SR2015 Outcome 6. The Spending Review 2015 settlement showed the FCO Resource Budget for as 1,169,000,000 and the capital budget as 98,000,000. Subsequently there have been a number of changes to the FCO's Departmental Expenditure Limits (DELs) which bring the current Resource DEL figure for to 2,137,945,000. The Spending Review 2015 Capital DEL has also increased from 98,000,000 to 134,442,000. The tables below show the main changes and reconciles the 2015 Spending Review budget allocations with the Main Estimates figures. Table 1 Resource DEL Resource DEL Baseline from SR 2015 ( m) 1, Changes effected in Main Estimates A transfer from DFID (programme) for CSSF (Conflict Prevention) A transfer from DFID (programme) for CSSF (Peacekeeping) A transfer from DFID (programme) for ODA HMT Non-Cash reduction (programme) A transfer from DFID (programme) for BBC World Service A transfer from DFID (programme) for Scholarships A transfer from DFID (programme) for British Council A transfer from Home Office (programme) in respect of charges for the FCO platform A transfer from DIT (programme) in respect of charges for the FCO platform A transfer to DFID (programme) in respect of charges for the FCO platform A transfer to MoD (programme) in respect of charges for the FCO platform A transfer to Cabinet Office (programme) in respect of Commonwealth Heads of Government A transfer to National Crime Agency (programme) in respect of charges for the FCO platform A Machinery of Government transfer (Administration) to DEXU A transfer from MoD (programme)for Falkland s Demining A transfer from DFID (programme) for the Prosperity Fund A transfer to HM Revenue and Customs (programme) in respect of charges for the FCO platform Autumn Statement 2016 uplift (administration) for Trade Officers A transfer from DFID (Programme) for the Empowerment Fund A transfer to DIT (programme) in respect of charged services A transfer to Crown Prosecution Service (programme) in respect of charges for the FCO platform A transfer to Department for Transport (programme) in respect of charges for the FCO platform A transfer to Department for Work and Pensions (programme) in respect of charges for the FCO platform A transfer to Department of Health (programme) in respect of charges for the FCO platform A transfer to DEFRA (programme) in respect of charges for the FCO platform A transfer to DEFRA (programme) for Darwin A transfer from DIT (programme) for the Israeli Tech Hub.0.10 A transfer from DFID (programme) for LGBT rights in Uganda Total changes to Resource DEL Main Estimate Resource DEL Main Estimates , Table 2 Capital DEL

4 Capital DEL Baseline from SR 2015 ( m) Changes effected in Main Estimates Uplift for receipts banked in A transfer from BEIS for the Science and Innovation Network Total changes to Capital DEL Main Estimate Capital DEL Main Estimates Table 3 Resource AME Resource AME Baseline from SR 2015 ( m) Resource AME Main Estimates Programmes 7. Included in the Resource DEL total of 2,137,945,000 are FCO s own strategic programmes. A breakdown of the opening allocations for 2017/18 is shown below. This will be subject to in-year change based on reviews of performance and spend. Budget Indicative budget Official Development Assistance (ODA) 107,409,500 Non-ODA 32,889,738 Total 140,299, All the FCO s own direct programme spending scores against Section A of the Supply Estimate with Section B covering the corresponding grants to third parties.

5 Budget comparisons 9. The definition of departmental budgets changes over time. Table 4 shows the FCO outturn on the definition of budgets used in the relevant financial year in order to be consistent with data published at that time. Data for each year may not therefore be strictly comparable. Table 4 Previous years' expenditure against departmental budgets m Year Voted Non-voted Total DEL Outturn Variance Per cent Resource DEL Outturn 2, , , Outturn 2, , , Outturn 2, , , Outturn 1, , , Outturn 1, , , Outturn* 2, , , Plans 2, , Plans 1 1, , Plans 1 1, ,357.9 Of which Administration Outturn Outturn Outturn Outturn Outturn Outturn* Plans Plans Plans Resource AME Outturn Outturn Outturn Outturn Outturn Outurn* Plans Plans Plans Capital DEL Outturn Outturn Outturn Outturn Outturn Outturn* Plans Plans Plans *Outturn is provisional. (1) Excludes CSSF funding which is transferred to FCO annually.

6 Departmental Unallocated Provision (DUP) 10. The FCO has no DUP. Budget Exchange 11. We have made no use of budget exchange. 12. This memorandum has been seen and approved by the Accounting Officer. Andrew Sanderson Finance Director 11 April 2017

ESTIMATES DAY DEBATE ; FOREIGN AND COMMONWEALTH OFFICE: THE FCO AND THE SPENDING REVIEW 2015.

ESTIMATES DAY DEBATE ; FOREIGN AND COMMONWEALTH OFFICE: THE FCO AND THE SPENDING REVIEW 2015. Minister for Europe King Charles Street London SW1A 2AH 13 April 2016 Crispin Blunt MP, Chair of the Foreign Affairs Committee, House of Commons, London, SW1A 0AA Dear Crispin, ESTIMATES DAY DEBATE 2015-16;