MPs brand Dfid merger an 'extraordinary mistake' as concerns over aid scrutiny grow

MPs have condemned the government’s decision to merge the Foreign Office and the Department for International Development, with one branding the move “unfathomable” in the midst of a pandemic.

Boris Johnson announced last month that Dfid and the FCO will become one department, known as the Foreign, Commonwealth and Development Office, under the leadership of Dominic Raab.

But on Thursday Sarah Champion, chair of the international development committee (IDC), which scrutinises Dfid, told the House of Commons the merger had “come as a complete surprise” - especially because a formal review of the integration was suspended in April due to Covid-19.

“I fully accept that it's a Prime Minister's gift to change the machinery of government,” Ms Champion, a Labour MP, said.

“However it is unfathomable to carry out a merger in the midst of a pandemic with no consultation of the sector or staff, no evidence this move will save money, or indeed make us more efficient at delivering the global Britain the Prime Minister so dearly wants.”

In a passionate defence of the department, Ms Champion added that the UK’s aid strategy, which is focused on reducing poverty, “amplifies our voice on the world stage” and “should never be linked to political pressure”.

“It promotes our national interest by projecting our core values and transforming the lives of the very poorest around the world,” Ms Champion told MPs. “A shift away from this is counterproductive - global poverty drives conflict and instability.”

Andrew Mitchell, a Conservative MP and former international development secretary, added that he regards the “decision to dismantle Dfid as a quite extraordinary mistake” which could “plunder the [aid] budget and Britain’s development effectiveness”.

The debate comes amid concerns that UK aid spending will no longer be effectively scrutinised post-merger. The future of both the IDC and Independent Commision for Aid Impact (ICAI) - a watchdog that has been praised for significantly improving the quality of aid spending - remain in doubt.

Though the government has indicated that it is in favour of continued scrutiny of the aid budget, which represents 0.7 per cent of the UK’s gross domestic product, as yet there has been no confirmation that ICAI will be retained.

And after announcing the merger in June, the government sent a letter to the IDC suggesting that the committee should be dissolved - though this decision ultimately lies with Parliament.

Tom Tugendhat, chair of the foreign affairs committee (FAC), indicated on Thursday that he was in favour of retaining ICAI.

“Tax is money taken by force. It must be scrutinised by this House and made sure that it is spent appropriately and correctly and that is why I am passionate in defending the ICAI Commission.

“We must remember that when we bring Dfid and the Foreign Office together, it is a merger of equals and not a takeover,” he added.

The debate followed the first FAC evidence session on the merger on Wednesday, which demonstrated the need for specialised security of aid policy, according to development insiders.

And in a separate IDC meeting earlier this week the current international development secretary, Anne Marie Treveylan, fleshed out details of what the FCDO might look like, insisting it would be a “blended new organisation.”

The government has also confirmed there will be just one Cabinet minister and one permanent secretary for the department. This contradicts recommendations in an IDC report earlier this week, which called for Dfid to maintain independence and Cabinet representation.

Commenting on the debate on Thursday Stephanie Draper, chief executive of Bond, the UK network for non governmental organisations said that the government must “meaningfully engage with aid and development experts to help inform the new department's priorities”.

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