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UK counter-terror 'ambitions' cut UK defends counter-terror 'cuts'
(about 3 hours later)
The government has admitted it will be spending "less than we had ambition to spend" on counter-terrorism projects in Pakistan due to the falling pound. Ministers have admitted cutting some counter-terror projects in Pakistan - a day after Gordon Brown said the area was the "number one security threat".
But Foreign Office minister Chris Bryant told MPs the budget would still go up next year. Ministers say the budget for counter terrorism will go up next year - but not by as much as hoped and some projects have already been axed.
He was making an urgent statement after fellow minister Lady Kinnock appeared to contradict a statement by PM Gordon Brown on counter-terrorism. The Foreign Office is having to cut back because of the falling pound.
The Lib Dems said government policy in this key area was "shambolic". The Tories have accused the government of "being indifferent" to Britain's global interests.
Mr Bryant acknowledged that the Foreign Office budget had been hit by the falling value of the pound. In recent years the government has stepped up spending on counter-terror and de-radicalisation projects in Pakistan as part of a wider effort to prevent terror attacks on the streets of Britain.
But he said counter-terrorism spending in Pakistan had risen from £6.2m in 2008/09 to £8.3m in 2009/10 and would be between £9m and £9.5m in 2010/11. 'Essential projects'
In a statement to peers, foreign office minister Baroness Kinnock said the budget would go from £8.2m in 2009/10 to £9.5m in 2010/11.
But she admitted this was "not as much as hoped" and that a "small number of... projects that were not delivering as effectively as other projects at meeting CT (counter-terrorism) objectives" had been cut or "scaled back" as a result.
We have a government, and in particular a prime minister, which is indifferent to the point of negligence towards the global interests of the United Kingdom Shadow Foreign Office minister David Lidington Urgent question on BBC Democracy Live
The BBC understands they include education projects and efforts to tackle radicalisation in madrasas - Islamic schools or colleges.
Pakistan's High Commissioner Wajit Shamsul Hasan told BBC Radio 4's The World at One that the projects that had been axed were "essential projects" which he hoped would be restored when the British government had resolved its financial problems.
Shadow Foreign Office minister David Lidington said the row suggests "that we have a government, and in particular a prime minister, which is indifferent to the point of negligence towards the global interests of the United Kingdom".
But Chris Bryant hit back, telling Mr Lidington: "You can huff and you can puff as much as you want, but unless you are prepared to make commitments about your funding after a general election, I don't think anyone will take you seriously."
'Substantial cuts'
The Foreign Office, which receives about 50% of its funding in foreign currency, was cushioned against the falling pound by a special fund until it was axed in 2007.
Defence Secretary Bob Ainsworth has also said exchange rate issues were affecting the defence budget.
"We are having to try to live within our budget and move money around to our priorities," he said.
The full extent of the problem for the Foreign Office is set out in a leaked memo obtained by the Conservatives.
The memo orders officials to draw up plans for "substantial" cuts to be implemented "soon after the election" - blaming the cash crisis on the falling value of sterling and budget pressure.
Further cuts could and should not be achieved by salami slicing: it would require us to stop activity, close posts and reduce staff numbers Leaked Foreign Office memo Send us your commentsFurther cuts could and should not be achieved by salami slicing: it would require us to stop activity, close posts and reduce staff numbers Leaked Foreign Office memo Send us your comments
Lady Kinnock, who was speaking at the same time as Mr Bryant in the House of Lords, gave slightly different figures, saying the budget would go from £8.2m in 2009/10 to £9.5m in 2010/11. It suggests foreign posts may have to close if funding is cut further, although it stressed that Foreign Secretary David Miliband did not want this.
She said: "This is a smaller rise than we would have hoped, we are still spending more than on Pakistan CT (counter-terrorism) than we have ever done. Pakistan remains a critical partner in our nation's security. A small number of particular projects that were not delivering as effectively as other projects at meeting CT objectives have been cut or scaled back." Nevertheless, the Tories have accused Labour of drawing up a secret hit list of embassies it planned to close - something firmly denied by ministers.
She said the government's counter-terrorism strategy was "but a small part" of its overall efforts in Pakistan. The row over Foreign Office funding blew up on Wednesday after Baroness Kinnock revealed it was facing a budget shortfall, which was due to get slightly worse in 2010/11.
Mr Brown, speaking on a visit to Stevenage, said: "It is important to recognise our counter-terrorism effort is also linking up the efforts of our police forces here and our border control system, which is keeping the country as safe as possible.
"We are extending the range of work we are doing on de-radicalisation... but we also want to support the moderates."
Counter radicalisation
The BBC understands the programmes cut or scaled back include education projects and efforts to tackle radicalisation in madrasas - Islamic schools or colleges.
BBC political correspondent Carole Walker said: "I understand the Foreign Office failed to clear the specific cutbacks through the government committee which oversees security and counter-terrorism.
"A senior source said the cutbacks would have no effect on national security in the short or medium term but were part of the efforts to counter radicalisation.
"However, the source said the decisions had been taken without being considered as part of the overall government strategy."
'Crucible of terrorism'
The row blew up after Lady Kinnock revealed on Wednesday that the Foreign Office was facing a budget shortfall across the board this year, which was due to get slightly worse in 2010/11.
She told peers: "We have had staff redundancies in Argentina, Japan and across the United States.She told peers: "We have had staff redundancies in Argentina, Japan and across the United States.
"Programmes in Afghanistan in counter-narcotics have been cut, capacity building to prevent conflicts in Africa, counter-terrorism and radicalisation in Pakistan, the list goes on.""Programmes in Afghanistan in counter-narcotics have been cut, capacity building to prevent conflicts in Africa, counter-terrorism and radicalisation in Pakistan, the list goes on."
'Crucible'
Her comments came two hours after Gordon Brown outlined a range of new counter-terrorism measures to MPs in a Commons statement.Her comments came two hours after Gordon Brown outlined a range of new counter-terrorism measures to MPs in a Commons statement.
It is absolutely vital that we maintain our presence in the world Foreign Officer Minister Chris Bryant
During that statement he said that the "crucible of terrorism" on the Afghan-Pakistan border remained the "number one security threat to the West".During that statement he said that the "crucible of terrorism" on the Afghan-Pakistan border remained the "number one security threat to the West".
It comes as the Conservatives accused the government of drawing up a secret hit list of embassies to be closed as a result of the sharp fall in the value of sterling. BBC political correspondent Carole Walker said the apparent confusion between the two statements had arisen because the Foreign Office "failed to clear the specific cutbacks through the government committee which oversees security and counter-terrorism".
Shadow foreign minister David Lidington said an internal Foreign Office memo revealed officials had been ordered to draw up plans for "substantial" cuts to be implemented "soon after the election". Speaking on a visit to a housing estate in Stevenage, Mr Brown stressed that there would be no cuts in the counter-terrorism budget to be spent in Pakistan and it would increase next year.
The memo says: "Even with cuts to programme to subsidise admin[istration], next year's admin budgets will still be substantially less than this year. "We are extending the range of work we are doing on de-radicalisation... but we also want to support the moderates," he said.
Significant challenges But Lib Dem foreign affairs spokesman Edward Davey said: "Cuts to essential counter-terrorism work in Pakistan are simply unacceptable.
"We were clear that further cuts could and should not be achieved by salami slicing: it would require us to stop activity, close posts and reduce staff numbers. "When our troops are in Afghanistan to fight the terrorist threat, it is a betrayal of their sacrifice to slash the diplomatic budget crucial to crushing the very source of that threat."
"That is not where any of us, including the foreign secretary and his ministerial team with whom we discussed this on 21 December, want to end up."
Mr Bryant acknowledged the Foreign Office was facing "very significant challenges" but denied there was a list of overseas posts facing closure.
"It is absolutely vital that we maintain our presence in the world," he told MPs.