UK & World News
The latest UK & World news stories from the Press Association.
Foreign Office budget move slammed
04:05, Mar 21 2010
The "ludicrous" decision to stop protecting the Foreign Office budget from fluctuations in exchange rates has caused an "unacceptable risk" to its ability to function properly, MPs have said.
A sharp fall in the value of sterling had caused a 13% drop in the FCO's core purchasing power since the system was axed in 2007, the Commons Foreign Affairs Committee found, sparking cuts in embassies and postings around the world.
The cuts caused a political row earlier this year when the Tories accused the Government of undermining Britain's global interests by scrapping the special fund that provided insulation from movements in the pound.
And the influential cross-party committee said the financial constraints under which the FCO was now operating were "unacceptably disrupting and curtailing" its work.
"We cannot see that it remains credible to regard the costs of currency fluctuations as predictable ones which the FCO might reasonably be expected to absorb," the committee said in its report.
"The cuts that the FCO is making at its overseas posts represent a serious reputational risk to the department and the UK, and thus a threat to the FCO's effectiveness," it said.
"Given the dispersal around the world of potential threats and areas of concern to the UK, and the large numbers of British citizens who travel widely overseas, closures of FCO overseas posts risk leaving potentially damaging gaps in UK information-gathering, provision of assistance and exercise of influence."
Committee chairman Mike Gapes said it was essential that the FCO had the resources it needed to carry out its traditional policy-making functions.
"For reasons largely beyond its control, the FCO's financial situation has come to represent an unacceptable risk to the department's ability to perform its functions," he said.
"Exchange rates should not drive UK foreign policy. At a time when globalisation is acknowledged as the key phenomenon of our times, it is incongruous that the position of the only government department with a global reach is threatened with erosion."
Romney returns to winning ways 00:05, Feb 12 2012
Mitt Romney has won the Maine caucuses by a slim margin, giving him a much needed boost following losses in three other contests in the past week, Maine Republican Party chairman Charlie Webster said. more
Salmond insists on no-strings poll 00:05, Feb 12 2012
Alex Salmond has again insisted that plans for an independence referendum must have "no strings attached" from Westminster. more
Call to embrace community energy 00:05, Feb 12 2012
The Government must overhaul the "closed shop" energy market by embracing community schemes, according to a new report. more
PM quashes Lansley speculation 00:05, Feb 12 2012
David Cameron has sought to quash speculation over the survival of health secretary Andrew Lansley and his controversial NHS shake-up. more
PM 'plans football racism summit' 00:05, Feb 12 2012
David Cameron is expected to step into the row over racism in football by staging a Downing Street summit on the issue. more
Anger over marriage tax breaks 00:05, Feb 12 2012
George Osborne has infuriated Tory MPs by reportedly ruling out tax breaks for married couples in the Budget. more
Murdoch expected in wake of arrests 22:05, Feb 11 2012
Rupert Murdoch is expected to fly to London next week after reassuring staff he would not sell The Sun in the wake of a second wave of arrests at the newspaper. more
Man charged with stabbing murder 21:05, Feb 11 2012
A man has been charged with murder after another man was stabbed to death on, police said. more
Protesters show Syria solidarity 19:05, Feb 11 2012
Hundreds of demonstrators have gathered in London in a show of solidarity with protesters across the Middle East and North Africa. more
Six bailed in corruption probe 19:05, Feb 11 2012
Six people arrested as part of an investigation into allegations of corruption have been released on bail, Scotland Yard said. more
The latest UK & World news stories from the Press Association.
