MPs have warned of the need to invest in staffing and systems to make a success of the government's strategic shifts in aid and development policy.
A new report from the International Development Committee urges the FCDO to develop a clear staffing plan to mitigate the impact of the government's plan to reduce Official Development Assistance spending to 0.3% of gross national income from 2027, and to ensure it maintains in-house expertise.
The government last month outlined how it plans to make reductions in ODA and set out four "essential shifts", which include moving from donor to investor, and from providing grants to providing expertise.
The International Development Committee report, published on Tuesday, says successfully reorientating UK bilateral programming around these shifts will require cultural and process changes within government departments delivering ODA. And it says the FCDO, in particular, will need to invest in staffing and systems to achieve this transition.
"The government must be clear-eyed that its “four essential shifts”, and aspirations of reform within the multilateral system, require two things: influence and expertise," the report says.
"Both require money that is well targeted and accountable. Having the necessary levels of “buy-in” to the system and the quality of in-house staff to retain the UK’s influence as a thought leader is critical to achieving the cost-effectiveness implicit in the reduction to 0.3%."
The report also raises concerns about proposed staffing cuts, especially the 42% reduction to Centrally Managed Programmes, and says there needs to be "careful staff planning" to maintain expertise both in-country and centrally.
It calls for a "proper staffing plan" to protect valuable in-house expertise, such as the East Kilbride office, from the cuts.
Simon Hardcastle, FDA national Officer for the FCDO, welcomed the report's focus on the critical role of FCDO staff' "in delivering, managing, and reforming UK aid policy, the impact of staffing cuts, and the need for investment in staff skills and capacity to achieve the government's strategic objectives".
He said: “An elected government always has the right to determine the shape and size of government departments. However, as this report makes it clear, the scale and pace of jobs cuts at the FCDO due to the government spending review risks undermining the department’s ability to deliver the government’s own strategic shifts in aid and development policy.
“Successfully reorientating UK bilateral programming will require investment in staffing and a funded strategic workforce plan that will ensure the department doesn’t lose valuable in-house expertise, such as those based at Abercrombie House."
Hardcastle noted the committee's warning that the proposed FCDO 2030 reorganisation could impact the UK's ability to influence aid effectively.
"The restructure must not leave the department deprived of the staff or skills needed to deliver the government’s UK aid policy," he said.
The report says that, if the FCDO is to both “retain” and “increase” the expertise needed to influence multilateral reform, synchronising is needed between the FCDO 2030 skills audit and the skills requirement to manage this multi-billion-pound portfolio.
An FCDO spokesperson said: “The government welcomes the International Development Committee’s report and will respond to the recommendations in due course.
“Our commitment to international development remains a central part of our foreign policy. We know that tackling global challenges like conflict, instability and crises, as well as investing in growth and trade, is not only the right thing to do but also delivers mutual benefits to the UK and those we aim to support.”