Foreign, Commonwealth and Development Office

Edward Morello Excerpts

Wednesday 4th March 2026 Commons Chamber

[Edward Morello (West Dorset) (LD)]

I am sure I am not alone in having been contacted by constituents trapped in the middle east or by those further afield who were hoping to transfer in the middle east on their way home. I am extremely grateful to all the FCDO staff around the world who are helping them out. It has brought into stark relief the fact that, in an unstable world, diplomacy and our diplomatic footprint has never been more important. The people, embassies, development expertise, aid, investment and political relationships we maintain across the globe are so important for our national security, our economy, the future of our planet and what Britain represents.

The latest funding settlement for the FCDO moves us in the wrong direction. Day-to-day spending is being reduced by £457 million—a 5.3% cut; the second highest cut for any Department, behind only the Home Office. Capital investment is down by £228 million—a 66.6% reduction; again, the second highest cut for any Department, apart from the Ministry of Housing, Communities and Local Government. Demand-led spending is dropping by a further £139 million, or 25.7%. These are sweeping cuts across the board, aimed disproportionately at the FCDO. They are why the FCDO has been forced into a restructuring process that may lead to the loss of nearly 2,000 jobs. These are significant reductions that come at a time when the world is becoming more and more volatile. If we continue in this way, our diplomatic presence will shrink not because of strategy, but because of budget constraints and Treasury spreadsheets.

We are no longer operating in a stable rules-based system dominated by one predictable power. We are moving towards a more fragmented, multipolar world. Middle powers are increasingly working together issue by issue on defence, trade and climate, rather than relying on a single hegemon to set the direction. As Canadian Prime Minister Mark Carney said in his powerful speech at Davos, middle powers must act together or risk being “on the menu”. For countries like the United Kingdom, the shift is important and it requires huge amounts of diplomacy and the use of our soft power on the world stage. Great powers can act alone. They have the market size and economic leverage to do so. Middle powers cannot. We rely on relationships; we rely on credibility; we rely on co-ordination with those who share our values; and we rely on diplomacy. That is precisely why FCDO funding is so important.

We invested heavily, both politically and financially, in our relationship with the United States, but we should be honest about the returns on our investment when the President does not share our values. When tariffs are imposed on British businesses and working families during a cost of living crisis, when trade decisions affect our farmers and our food standards, when strategic choices are made without our meaningful input, and when economic clout is used as leverage, it is reasonable to ask whether our limited diplomatic resources are being used in the most effective way now that the weakness and fragility of our relationship have been exposed.

[Emily Thornberry]

The hon. Gentleman is making a really good speech and until a moment ago I agreed with everything he said. Does he not agree that our relationship with the United States goes far beyond any leadership? It goes very deep. During the visits the Foreign Affairs Committee has made, we have met people from many different aspects of the United States. They are good friends of ours and we need to ensure that we keep those relationships close.

[Edward Morello]

I thank the right hon. Member—I have the huge privilege of serving under her chairmanship of the Foreign Affairs Committee. I do not disagree that the British relationship with the United States goes far beyond the current occupant of the Oval Office. I am extremely grateful for the depth of our relationship, especially on intelligence matters. However, in a situation where funding is constrained, we should focus more clearly on reliable partners, European allies and other middle powers who share our goals on defence, trade, climate and the rule of law.

We are increasing defence spending. It is not as quick or by as much as the Liberal Democrats would like, but there is an increase. It is necessary, but it should not come at the expense of the FCDO. Defence and diplomacy are not alternatives; they are two sides of the same coin. Hard power without strong diplomatic engagement limits our ability to prevent crises before they escalate. The Prime Minister himself said just this week, in his statement on Iran, that we must

“eliminate the urgent threat, prevent the situation from spiralling further, and support a return to diplomacy”

because that is

“the best way to protect British interests and British lives.”—[Official Report, 2 March 2026; Vol. 781, c. 585.]

If diplomacy is the best way to protect British lives, why are we cutting the funding to the very Department charged with delivering it?

We are living in a world where over one weekend global markets and alliances can shift, and energy bills and food prices can skyrocket, all because of the decisions of one person or one social media post. That is why we must stand up for international institutions and co-operation, not cut funding for the Department that facilitates it. In my time on the Foreign Affairs Committee, I have been consistently struck by the quality of the people who represent us overseas. They are capable, committed and brave, and are often operating in extremely difficult environments. But that capability requires resourcing. If posts are thinned out, if programming is cut back, if estate maintenance is delayed, our ability to influence outcomes diminishes. If we want to secure trade deals that support growth at home, we need negotiators with time and presence to build trust abroad. If we want deeper co-operation with European partners, we need sustained diplomatic engagement. If we want to prevent conflict, we need early intervention, development support and political dialogue through the FCDO.

Our current funding direction risks narrowing our options at precisely the wrong time. If we want Britain to remain a serious influential power, we must fund the diplomatic tools that make that possible.