Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, by what proportion his Department’s work on governance, democracy and anti-corruption will change as a result of reductions to Overseas Development Assistance in 2021.
Answered by Nigel Adams
As announced last year, the impact of the global pandemic on the UK economy has forced us to take the tough but necessary decision to temporarily reduce how much we spend on Official Development Assistance (ODA) to a target of spending 0.5% of Gross National Income (GNI) on ODA, rather than 0.7%. As we have set out in the Integrated Review, this is a temporary measure and we will return to 0.7% when the fiscal situation allows. No decisions on individual country or sectoral budget allocations have yet been made.
The recently-published Integrated Review is clear about the UK's commitment to being a Force for Good, supporting open societies. We will use our aid budget and British expertise to strengthen democratic institutions, human rights, free media, protect the civic space, and promote effective governance, including combatting corruption and illicit financial flows. Championing this agenda is not only essential for future development progress, but also to protect our values and interests in a world where open societies are under threat.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, if he will provide a breakdown of the reduction in the amount of Overseas Development Assistance to (a) governance, (b) democracy, and (c) anti-corruption programmes for each country in receipt of that funding.
Answered by Nigel Adams
As announced last year, the impact of the global pandemic on the UK economy has forced us to take the tough but necessary decision to temporarily reduce how much we spend on Official Development Assistance (ODA) to a target of spending 0.5% of Gross National Income (GNI) on ODA, rather than 0.7%. As we have set out in the Integrated Review, this is a temporary measure and we will return to 0.7% when the fiscal situation allows.
We are now working through the implications of these changes for individual programmes. No decisions on individual country or sectoral budget allocations have yet been made. The UK remains a world-leader in international development and, based on current GNI forecasts, we will spend over £10 billion of ODA in 2021.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what assessment he has made of whether the reduction in spending on governance, democracy, and anti-corruption work through Overseas Development Assistance will affect the budgets of (a) the National Crime Agency and (b) other UK law enforcement agencies.
Answered by Nigel Adams
As announced last year, the impact of the global pandemic on the UK economy has forced us to take the tough but necessary decision to temporarily reduce how much we spend on Official Development Assistance (ODA). The UK will remain a world leading donor, spending over £10 billion in 21/22. No decisions on sectoral budgets have been made yet.
The Foreign Secretary has set out seven core priorities for the UK's aid budget this year, including defending open societies. The recently published Integrated Review sets out the UK Government's commitment to fight corruption and illicit finance as threats to democratic values and open societies around the world. The UK will ensure effective governance and resilience at home and cooperate with other countries on the basis of transparency and good governance.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what (a) technical and (b) financial support the Government has (i) provided and (ii) offered to the Overseas Territories to enable them to introduce publicly accessible beneficial ownership registers by 2023.
Answered by Wendy Morton
The Foreign, Commonwealth and Development Office is providing all reasonable assistance to enable each of the Territories' governments to establish a publicly accessible register of the beneficial ownership of companies registered in their jurisdictions.
In July last year the UK Government ran a series of workshops for Territory governments drawing on expertise from a range of UK departments and executive agencies, including Companies House, BEIS and the Home Office, and from the Crown Dependencies. Last November, together with Open Ownership - an organisation which supports countries to introduce beneficial ownership registers - the UK ran webinars for the Territories to scope out individual needs. All Territories now have access to direct, individualised assistance from Open Ownership.
The level of financial support offered to Territories depends upon their individual circumstances. Many Overseas Territories are fiscally constrained and their economies have been hit hard by COVID-19. For those Territories most in need, the UK Government will provide financial support.
The Government recently welcomed announcements made by Territories' governments committing to the introduction of publicly accessible registers.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what the schedule is for the technical workshops to be held with the Overseas Territories for the establishment of public registers of beneficial ownership.
Answered by Alan Duncan
The FCO is working with other Government Departments to determine the possible date, location and topics that should be included in the technical workshops.
Prior to the first technical workshop, the FCO will consult all of the Overseas Territories to find out what topics they would find it useful to cover. This should ensure that the sessions are appropriately designed.
For the workshops themselves, we will aim to provide expertise from a range of Departments and Executive Agencies; including Companies House, the Department for Business, Energy and Industrial Strategy, the Department for International Development and the Home Office.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what activities will take place during the technical workshops to be held with the Overseas Territories for the establishment of public registers of beneficial ownership.
Answered by Alan Duncan
The FCO is working with other Government Departments to determine the possible date, location and topics that should be included in the technical workshops.
Prior to the first technical workshop, the FCO will consult all of the Overseas Territories to find out what topics they would find it useful to cover. This should ensure that the sessions are appropriately designed.
For the workshops themselves, we will aim to provide expertise from a range of Departments and Executive Agencies; including Companies House, the Department for Business, Energy and Industrial Strategy, the Department for International Development and the Home Office.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, for what reason 2023 has been established as the new deadline for the creation of public registers of beneficial ownership in the Overseas Territories.
Answered by Alan Duncan
The Government will prepare draft legislation by the end of 2020, as required by the Sanctions and Anti-Money Laundering Act 2018.
The Overseas Territories (OTs) will be expected to have public registers in place by the end of 2023 in line with the UK Government's global campaign to make public registers the global norm by then.
It is important that the OTs with financial centres meet international standards on tax transparency and anti-money laundering. Most OTs are either currently being or due to be evaluated by the Financial Action Task Force and are also working to deliver their commitments to the EU Commission to prevent them being included on the EU's list of non-cooperative tax jurisdictions.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what reasonable assistance his Department plans to give to the Overseas Territories to support the implementation of public registers of beneficial ownership in accordance with section 51 of the 2018 Sanctions and Anti-Money Laundering Act.
Answered by Alan Duncan
The FCO is working in conjunction with several other Government Departments and Overseas Territories (OTs) to determine what assistance would be most useful.
As you are aware, the Minister of State Lord Ahmad of Wimbledon announced at the Overseas Territories Joint Ministerial Council that OT-UK technical workshops would be provided from spring 2019 to provide support.
The Government will also consider what financial support it will provide for territories which are eligible for Official Development Assistance.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what discussions representatives of his Department had at the Overseas Territories Joint Ministerial Council on 4-5 December 2018 on requests for assistance provided by the UK Government.
Answered by Alan Duncan
The Government has not received any formal requests for assistance from the Overseas Territories thus far. Lord Ahmad, however, has announced at the Overseas Territories Joint Ministerial Council the setup of OT-UK workshops that will be scheduled from spring next year to provide technical support to the territories. The UK Government will also consider what financial support is needed for the Official Development Assistance-eligible territories.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign and Commonwealth Affairs, what discussions representatives of his Department had at the Overseas Territories Joint Ministerial Council on 4-5 December 2018 on the establishment of public beneficial ownership registers in the Overseas Territories.
Answered by Alan Duncan
Lord Ahmad, Minister of State for the Overseas Territories, and Mr John Penrose MP, the Prime Minister's Anti-Corruption Champion discussed the Government's approach to taking forward section 51 of the Sanctions and Anti-Money Laundering Act with Overseas Territories' leaders. The UK will prepare draft legislation by the end of 2020, with all OTs expected to have fully functioning public registers by the end of 2023. The UK will push for action at the highest levels with our partners around the world to make public registers of company beneficial ownership the global norm by 2023. Gibraltar has committed to have in place a publicly accessible register of beneficial ownership for legal entities in line with the EU 5th Anti-Money Laundering Directive by January 2020.