Committee publication · Estimate memoranda · 29 April 2026

Memorandum on Foreign, Commonwealth and Development Office Main Estimates 2026-27

From: International Development Committee

Summary

This memorandum details the Foreign, Commonwealth and Development Office's Main Estimates for 2026-27, seeking Parliament's approval for spending totals of £6.3bn Resource DEL and £3.1bn Capital DEL. It outlines the FCDO's six strategic priorities—security, growth and resilience, migration, development and climate, women and girls, and agile alliances—alongside significant budget changes including a £580.2m transfer of the Integrated Security Fund to the Cabinet Office and reduced Official Development Assistance allocation to 0.3% of GNI.

Key findings

  • Resource DEL decreased by £1.93bn (-24%) from final 2025-26 budget, primarily due to UKISF transfer to Cabinet Office (£580.2m), depreciation reclassification to Resource AME (£389.9m), and ODA reductions.
  • The Integrated Security Fund management permanently transferred from FCDO to Cabinet Office on 1 April 2026, consolidating security fund leadership and delivery structures.
  • Official Development Assistance reduced to 0.3% of GNI by 2027 to fund increased defence spending; UK commits to return to 0.7% when fiscal circumstances allow. Priority themes remain humanitarian, global health, climate and nature, and economic development.
  • Administration costs decreased by 6% (£20m) compared to 2025-26 final budget; Capital DEL remained broadly stable at £3.14bn despite ODA allocation reductions.
  • Major capital projects include Tokyo Embassy compound refurbishment and various infrastructure works; FCDO implementing new Global Asset Management Plan and cyber security enhancements in 2026-27.

Tone

Procedural

Topics

public-financeinternational-developmentnational-securityclimate-and-environmentmigration

Key actors

Foreign, Commonwealth and Development Office (FCDO), Cabinet Office, Ministry of Defence, Home Office, British International Investment (BII), Prime Minister Sir Keir Starmer, Nick Dyer (Accounting Officer/Permanent Under-Secretary), Foreign Secretary

Notable line

The UK will return to spending 0.7% of GNI on ODA when fiscal circumstances allow.

Key Quotes

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.
FCDO · Strategic transformation overview
The UK's commitment to international development is as important as ever – it reflects UK values, supporting those in conflict and extreme poverty, and is also in the UK national interest because in an interconnected world, crises and instability across the world undermine our security and prosperity at home.
FCDO · Justifying continued ODA commitment despite reduction to 0.3%
By centralising these functions in the Cabinet Office, the Government will improve its ability to respond to an evolving domestic and international threat landscape.
FCDO · Rationale for Integrated Security Fund transfer
The information in this Estimates Memorandum has been approved by myself as Departmental Accounting Officer.
Nick Dyer · Accounting Officer approval signature
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Source · parliament.uk record ↗