Committee publication · Estimate memoranda · 29 April 2026

Foreign, Commonwealth & Development Office Main Estimate Memorandum 2026-27

From: Foreign Affairs Committee

Summary

This Foreign Affairs Committee estimate memorandum details the FCDO's spending plans for 2026-27, totalling £6.3 billion in Resource DEL and £3.1 billion in Capital DEL. Major changes include a £580.2 million transfer of the Integrated Security Fund to the Cabinet Office, reduced ODA allocations reflecting the 0.3% GNI commitment until 2027, and implementation of FCDO2030 reform priorities spanning security, growth, migration, development, women's rights, and alliance-building.

Key findings

  • Resource DEL reduced by £1.9 billion (-24%) from Supplementary Estimate 2025-26, primarily due to UKISF transfer (£580.2m) to Cabinet Office, ODA reductions, and depreciation reclassification to Resource AME (£389.9m).
  • ODA spending remains at 0.3% of GNI until 2027, with priority allocation to humanitarian response, global health, climate, and fragile/conflict-affected states; UK will return to 0.7% when fiscal circumstances allow.
  • Capital DEL broadly stable at £3.1 billion, with £143 million increase for British International Investment recapitalisation and £55 million budget exchange for delayed estates projects.
  • Administration costs declining 6% to £327 million; Department committing to overseas estate management overhaul, cyber security enhancements, and data systems rollout (Global Asset Management Plan, facilities management system).
  • Major projects include Tokyo Embassy compound refurbishment; Echo 2 (network/telecoms upgrade with British Council) completed and removed from NISTA reporting.

Tone

Procedural

Topics

public-financeinternational-developmentdefence-securitymigrationclimate

Key actors

Foreign, Commonwealth & Development Office (FCDO), Cabinet Office, Ministry of Defence, Home Office, British International Investment (BII), National Infrastructure and Service Transformation Authority (NISTA), Sir Keir Starmer, Nick Dyer (Accounting Officer, FCDO)

Notable line

FCDO2030 is a strategic transformation that will redefine how the Foreign, Commonwealth & Development Office delivers for the UK in an increasingly complex and volatile world.

Key Quotes

The FCDO makes the UK stronger, safer and more prosperous, by leading and integrating delivery of the Government's objectives abroad.
FCDO · Opening statement on departmental purpose
The UK will return to spending 0.7% of GNI on ODA when fiscal circumstances allow.
Government · ODA spending announcement regarding temporary reduction to 0.3% GNI
… the management of the Integrated Security Fund, and associated funding, was permanently transferred from the Foreign, Commonwealth and Development Office to the Cabinet Office.
Prime Minister · Written Ministerial Statement, 14 April 2026, explaining machinery of government change
From 2026 – 27, the Department is implementing a more structured and risk-based approach to estate management through a new Global Asset Management Plan, aligned with the FCDO2030 reform programme
FCDO · Response to Public Accounts Committee and NAO recommendations on overseas estate management
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Source · parliament.uk record ↗