Committee publication · Correspondence · 17 December 2025
Correspondence with the Permanent Under-Secretary, FCDO, relating to the Annual Report and Accounts evidence session, dated 12 and 10 December 2025
From: Foreign Affairs Committee
Inquiry: Work of the Foreign, Commonwealth and Development Office
Summary
Correspondence between the Foreign Affairs Committee Chair and the FCDO's Permanent Under-Secretary following an evidence session on 12 December 2025. The Committee sought clarification on apparent £0.8bn budget reductions between the June 2025 Spending Review and November 2025 Budget, and on bullying, harassment and discrimination (BHD) survey results. The PUS explains the reduction as a Capital DEL-to-AME switch for British International Investments funding and a Resource DEL reprofiling between fiscal years, and reports BHD incidents fell one point to 12% despite remaining unacceptably high.
Key findings
- FCDO Capital DEL allocation fell £0.4bn due to reclassification as Capital AME for British International Investments funding under HM Treasury budgeting rules; this switch is not disclosed in Budget documents.
- Resource DEL allocation reduced by £0.4bn reflecting a reprofiling of spending between 2025-26 and 2026-27, with no net reduction in total resources.
- BHD survey results improved marginally from 2024 to 12% in 2025, but PUS acknowledges the figure remains unacceptably high; top three natures of BHD (negative micromanagement, unfavourable treatment, intimidation/aggression) unchanged from 2024.
- FCDO operates over 500 trained Fairness Champions to support staff experiencing BHD and plans additional actions to be agreed at January 2026 Corporate Committee meeting.
- Committee requests further updates on British Council funding arrangements, directorate restructuring chart, and overseas estate reduction plans by Spring 2026.
Tone
ProceduralTopics
Key actors
Sir Oliver Robbins, Dame Emily Thornberry MP, Foreign Affairs Committee, FCDO (Foreign, Commonwealth and Development Office), HM Treasury, British International Investments, Employee Experience Dignity and Respect at Work Team
Notable line
“… that figure is still too high. The top three reported natures ofBHD are unchanged from 2024: negative micromanagement; treated less favourably; intimidation …”
Key Quotes
“… there has been an unexplained reduction in 2025-26 DEL budgets, with no corresponding increase in future years.”
“This switch occurred to allow FCDO to provide funding to British International Investments as Capital AME in line with HM Treasury budgeting rules.”
“… overall figures for BHD have fallen one point in the 2025 People Survey to 12%, in part thanks to the work on BHD action plans and to support to teams from the Employee Experience Dignity and Respect at Work Team.”
“However, as I said during the session, that figure is still too high.”
“We have over 500 trained Fairness Champions, who act as a listening ear for staff who feel they have experienced BHD and they can signpost further support.”
Source · parliament.uk record ↗