Conclusions and recommendations
Staffing
1. We recommend that
the FCO give an assurance that any compulsory redundancies in
the next Spending Review period would not entail a decrease in
the number of staff providing direct policy support. (Paragraph
18)
2. The FCO should,
in response to this Report, set out its strategy for ensuring
that vacancies for key posts are filled promptly and by staff
of the necessary calibre. (Paragraph 20)
Overseas opportunities for UK-based staff
3. We believe that
the head of the UK's representation in any particular country
should only be a non-FCO career employee in the most exceptional
circumstances. However, we welcome the reassurance by the Permanent
Under-Secretary that he would expect a Head of Mission always
to be employed as an FCO employee. We believe that any other arrangement
would obscure an otherwise clear line of accountability, from
heads of mission to the Permanent Under-Secretary to FCO Ministers.
(Paragraph 33)
Disclosure of information
4. It is unacceptable
for Government departments to place constraints on the disclosure
of information which directly concerns public expenditure, is
not internal policy advice, and which we suspect is neither commercially
confidential nor likely to present a security risk if disclosed.
(Paragraph 39)
Conclusion on pay and morale
5. The FCO must continue
to ensure that the Department is an attractive place to work and
that it can compete with other high-prestige employers to attract
high-quality applicants. Maintaining a tradition of excellence
will be key, but we believe that the FCO cannot entirely overlook
pay and benefits. The FCO could either seek to eliminate the pay
differential between the FCO and comparable Government departments:
that would require Treasury dispensation and might cost £20
million, maybe spread over a period of five years or so; or it
could put more resources into safeguarding the benefits and allowances
which are most valued by staff. (Paragraph 43)
Overall conclusion on FCO spending and impact on
capacity and workforce
6. The cuts imposed
on the FCO since 2010 have been severe and have gone beyond just
trimming fat: capacity now appears to be being damaged. The next
Government needs to protect future FCO budgets under the next
Spending Review. The FCO already spends less per head of population
than foreign ministries in our closest comparator countries. The
majority of the FCO's expenditure is either ring-fenced or non-discretionary,
and so its scope to make savings is limited. If further cuts are
imposed, the UK's diplomatic imprint and influence would probably
reduce, and the Government would need to roll back some of its
foreign policy objectives. In short, the FCO would need to aim
to do less. (Paragraph 47)
Diversity at the FCO
7. We recommend that
the FCO, in its response to this Report, explains how it plans
to use diversity factors as a "legitimate consideration in
appointment decisions", if it has ruled out the use of positive
discrimination. (Paragraph 55)
8. Persistent under-achievement
on diversity targets has the potential to drain morale and risks
damaging the reputation of the FCO as an employer and service
provider. The problems do not appear to reflect institutional
barriers but rather a lack of confidence among women that they
have the same opportunities for career development and advancement
as their male colleagues. We would expect the measures already
in hand to have an effect, if not an immediate one; and we endorse
the principle that the FCO should continue to make appointments
on the basis of best person for the job. The FCO will, however,
need to continue to demonstrate that cultural change is under
way, if women in the FCO are to feel confident that they can make
it to the top of the organisation. (Paragraph 61)
Export target
9. The Chancellor's
target for the value of UK exports in goods and services to reach
£1 trillion by 2020 is very demanding: it appeared unrealistic
at the time it was set and it is proving to be so now. We do not
believe that a major reallocation of FCO staff and effort would
necessarily help to reach that target; nor do we believe that
such a rebalancing would be desirable. We believe that the Government
should set a new, more realistic target for UK exports, and it
should expect other Government Departments to play their part
in helping to reach it. (Paragraph 67)
Commercial sponsorship
10. We recommend that
data on sponsorship for events hosted by the FCO in the UK is
included in disclosures on corporate sponsorship. (Paragraph 71)
11. We welcome the
assurances from the Department that no special favours are granted
to companies which sponsor FCO activities. (Paragraph 72)
12. The value of sponsorship
currently being raised by the FCO hardly justifies the reputational
risk to the Department, nor does it appear to compensate adequately
for the undoubted value that sponsors receive on behalf of the
taxpayer. We encourage the FCO to derive greater value for the
taxpayer by extracting more from commercial sponsors, on the understanding
that all sponsorship (not just deals with a value of over £5,000)
should be transparent and should be published by the FCO on a
rolling basis, rather than being held over to the Annual Report
and Accounts. (Paragraph 73)
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