Diplomatic budget cuts will harm Britain's influence on world stage, experts warn

Chancellor George Osborne has been urged to rethink the 25-40% of FCO cuts he has proposed

A meeting at the Foreign and Commonwealth office in Whitehall. Under the Coalition, Foreign Office spending fell by around 16 per cent in real terms (Getty)

Britain’s influence on the world stage will be seriously diminished unless George Osborne reverses cuts to diplomatic budgets, senior foreign affairs experts have warned.

The Foreign and Commonwealth Office (FCO) has been asked to find savings of between 25 and 40 per cent from its budget by 2020, following a wave of cuts since 2010 which mean the UK now spends less per head on diplomatic efforts than Australia, Canada and New Zealand.

In a new report experts including a former UK permanent representative to NATO warn that cuts have damaged Britain’s capacity to lead on diplomatic efforts, citing the absence of UK leaders at the Minsk peace talks that stabilised the conflict in Ukraine, as evidence of the dwindling influence of the once-famed British diplomatic service.

They add that there is now “widespread concern that the UK is disengaged” and call on the Chancellor to ring-fence the diplomatic budget his spending review later this month, and guarantee 0.2 per cent of national income is devoted to diplomacy.

Foreign office spending fell by around 16 per cent in real terms under the Coalition government, with most of the cut coming from its grant to the BBC World Service.

The Strengthening Britain’s Voice in the World report, compiled by experts including former NATO envoy Dame Mariot Leslie, and former government foreign affairs spokesman Lord Wallace, also warns that the forthcoming EU membership referendum has added to “uncertainty” about Britain’s role in the world.

“Our conclusion is that developments in the rest of the world matter hugely to Britain; that the UK cannot afford to be passive or leave the running to others who may not share its interests or its values; and that Britain should be ambitious about what it can achieve," says the report, which will be launched at the Royal United Services Institute.

“One of our greatest concerns is the impact that continuing disinvestment in the UK's diplomatic capabilities will have structurally on the country's ability to respond to the changing international context.”

Last month MPs on the Foreign Affairs Committee warned that any further significant cuts to the FCO’s budget would be “madness”. In their report the committee said it would “beyond irresponsible” to cut the department’s £1.7bn budget any further.