The UK’s Foreign Office has taken the brunt of cuts in the latest government spending review, prompting fears that Britain’s “soft power” capabilities will be heavily eroded.
Staff face a cut to their overseas allowances and potentially being downgraded on pay scales as the department tries to save £78 million a year, a supplementary document revealed.
If we aren’t proactive in maintaining our global influence, we can expect our standing to diminish
Emily Thornberry
With a major reduction in overseas aid to fund an increase in defence spending already announced, there is growing concern that Britain’s ability to use “soft power” diplomacy tools will be severely curtailed.
The cuts were condemned by senior Labour MP Emily Thornberry, chairwoman of the cross-party Foreign Affairs Committee, who said they were “alarming and inconsistent” and could damage Britain’s global influence.
The reduction in Foreign Office spending was part of the review announced by Chancellor Rachel Reeves, in which the military and security services, and the National Health Service receive significant increases in spending.
Efficiency plans
Morale at the Foreign Office is understood to have taken a blow after the small print of the review, labelled “departmental efficiency plans”, shows proposed cuts to pay and allowances.
The government department, which has 156 embassies and 49 consulates worldwide, will “tighten grading standards to ensure roles are … appropriately remunerated”.
“This will counter a pattern of grade inflation that has emerged over the past decade and more robustly support cost control,” the report warned.
Those operating in overseas postings, where they are compensated to maintain a standard of living comparable to the UK, are fearful that they too face cuts.
The overseas allowance would face “reform” and “streamlining” with the monetary value of specific allowances “being reviewed and revised”, the report said.
“This is an ambitious plan to transform the FCDO [Foreign Commonwealth and Development Office] into a smaller, technologically advanced department with planned investment in both workforce reform and digital transformation that will drive significant efficiencies,” it stated.
Harshest cuts
Ms Thornberry said that in the current international turmoil Britain had “never been more needed as a force for good”. However it was, she added, “very concerning that the FCDO appears to be suffering the harshest real-terms cuts”.
With the overseas aid budget already cut from 0.5 per cent to 0.3 per cent of GDP to pay for defence, she was “deeply concerned about the strain that this spending review will place on the entirety of the department”. She would scrutinise the report to ensure the department was “not suffering major further cutbacks”.
“Real-term cuts to the Foreign Office budget are alarming and inconsistent with the government’s objective to position the UK as a leader on the world stage,” she warned.
BBC World Service worries
Ms Thornberry also raised concern about the lack of “clarity or concrete commitment” to finance the British Council and the BBC World Service, which both rely heavily on Foreign Office funding.
The BBC has already scaled back the World Service, prompting concern about the UK’s soft power overseas. BBC Arabic radio was among 10 foreign language services to stop broadcasting in 2023.
Russian-backed news services have begun broadcasting in Lebanon on the former BBC Arabic frequency, leading to acknowledgement that closing the service may have been a mistake.
It has also been reported that ministers have asked the British Council look at efficiencies that could make the influential overseas organisation close in 60 countries
“If we aren’t proactive in maintaining our global influence, we can expect our standing to diminish, and for autocratic states to fill the vacuum we leave,” Mrs Thornberry concluded.
The efficiency report also revealed that the Integrated Security Fund, which supports initiatives on national security risks domestically and overseas, would need to “deliver efficiency gains” of £10 million within three years, mainly through “automation, AI, and digital tools”.
Lib Dem MP Rachel Gilmour warned on X that cutting the foreign aid budget by £6 billion a year could “not only undermine our soft power, but also leave vital regions exposed to hostile powers and geopolitical rivals.”
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Mohammed bin Zayed Majlis
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
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Price: Dh332,800
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Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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RESULTS
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
Winner RB Money To Burn, Fabrice Veron (jockey), Eric Lemartinel (trainer).
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
Winner Ekhtiyaar, Jim Crowley, Doug Watson.
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
Winner Commanding, Richard Mullen, Satish Seemar.
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
Winner Benbatl, Christophe Soumillon, Saeed bin Suroor.
8.50pm Handicap (TB) $135,000 (T) 1,600m
Winner Zakouski, William Buick, Charlie Appleby.
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
Winner Kimbear, Pat Dobbs, Doug Watson.
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
Winner Platinum Star, Christophe Soumillon, Saeed bin Suroor.
10.35pm Handicap (TB) $135,000 (T) 1,600m
Winner Key Victory, James Doyle, Charlie Appleby.
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
The specs: 2019 BMW i8 Roadster
Price, base: Dh708,750
Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery
Transmission: Six-speed automatic
Power: 374hp (total)
Torque: 570Nm (total)
Fuel economy, combined: 2.0L / 100km
