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Row over UK terror spending 'cut' Counter-terror spending defended
(about 1 hour later)
The government is facing criticism after a Foreign Office minister said UK counter-terrorism projects in Pakistan were being cut back. The government has admitted it will be spending "less than we had ambition to spend" on counter-terrorism projects in Pakistan after currency fluctuations.
Lady Kinnock said the weak pound meant the Foreign Office was having to deal with an estimated shortfall in its budget this year of £110m. But Foreign Officer Minister Chris Bryant insisted the budget would still go up next year, from £8.2m to £9.5m.
Her comments came shortly after the PM called the Afghan-Pakistan border the "number one security threat". The minister was making an urgent statement after Lady Kinnock appeared to contradict a statement by PM Gordon Brown on counter-terrorism.
The Lib Dems have demanded an urgent statement from Gordon Brown. The Lib Dems said government policy in this key area was "shambolic".
The party's foreign affairs spokesman Ed Davey said: "It is unbelievable. This is shambolic. They have got to reverse these cuts and they have got to explain why they have got this whole thing in such a mess."
'Cheeseparing'
He said a mechanism that cushioned the Foreign Office from currency fluctuations had been removed and this was "playing havoc" with its budget.
But with British troops fighting a war in Afghanistan the "cheeseparing" of counter-terrorism budgets could not be tolerated.
"It beggars belief that ministers should allow what is probably relatively small cuts to go ahead but the sort of money that's needed in this diplomatic push in Pakistan is relatively small but it can make a massive difference," he told the BBC News channel.
Cutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy William Hague, shadow foreign secretary Send us your commentsCutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy William Hague, shadow foreign secretary Send us your comments
Lady Kinnock revealed at Lords question time 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.Lady Kinnock revealed at Lords question time 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."
Lord Wallace of Saltaire, for the Liberal Democrats, said he estimated that there had been a "20% cut" in the effective budget of the Foreign and Commonwealth Office since the Treasury removed the Overseas Price Mechanism in 2007, which made up shortfalls caused by exchange rate changes.Lord Wallace of Saltaire, for the Liberal Democrats, said he estimated that there had been a "20% cut" in the effective budget of the Foreign and Commonwealth Office since the Treasury removed the Overseas Price Mechanism in 2007, which made up shortfalls caused by exchange rate changes.
Lady Kinnock's comments came in the House of Lords two hours after Gordon Brown outlined a range of new counter-terrorism measures to MPs in a Commons statement.Lady Kinnock's comments came in the House of Lords two hours after Gordon Brown outlined a range of new counter-terrorism measures to MPs in a Commons statement.
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".
SurprisedSurprised
Shadow foreign secretary William Hague said the cuts were the "direct consequence of Labour's decision to remove the FCO's protection against exchange rate movements".Shadow foreign secretary William Hague said the cuts were the "direct consequence of Labour's decision to remove the FCO's protection against exchange rate movements".
He said: "Pakistan has been identified as one of the major sources of the terrorist threat to this country.He said: "Pakistan has been identified as one of the major sources of the terrorist threat to this country.
"Cutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy."Cutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy.
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
"It is time that the truth is known and the full extent of the damage done to British diplomacy overseas laid bare.""It is time that the truth is known and the full extent of the damage done to British diplomacy overseas laid bare."
The Foreign Office said it was constantly reviewing the precise allocation of its counter-terrorism spending.The Foreign Office said it was constantly reviewing the precise allocation of its counter-terrorism spending.
A spokeswoman said its spending had increased year-on-year throughout the current comprehensive spending review period and was expected to increase again next year.A spokeswoman said its spending had increased year-on-year throughout the current comprehensive spending review period and was expected to increase again next year.
"Pakistan has remained our top priority for counter-terrorism and has rightly been the largest single recipient of our counter-terrorism support throughout this period," she said."Pakistan has remained our top priority for counter-terrorism and has rightly been the largest single recipient of our counter-terrorism support throughout this period," she said.
'Not coherent''Not coherent'
Labour peer Baroness Royall, leader of the House of Lords, said she was surprised by Lady Kinnock's comments, saying the government's counter-terrorism work in Pakistan was of the "utmost importance".Labour peer Baroness Royall, leader of the House of Lords, said she was surprised by Lady Kinnock's comments, saying the government's counter-terrorism work in Pakistan was of the "utmost importance".
Labour's Baroness Symons, a former defence procurement minister, urged the government to increase the counter-terrorism budget and said Lady Kinnock remarks, coming so soon after Mr Brown's statement, did not "add up to a very coherent point of view".Labour's Baroness Symons, a former defence procurement minister, urged the government to increase the counter-terrorism budget and said Lady Kinnock remarks, coming so soon after Mr Brown's statement, did not "add up to a very coherent point of view".
I don't think that this immediately is affecting the hard end of our counter-terrorism activities Kim Howells, chairman of the intelligence and security committeeI don't think that this immediately is affecting the hard end of our counter-terrorism activities Kim Howells, chairman of the intelligence and security committee
Labour MP Kim Howells, chairman of the intelligence and security committee and a former Foreign Office minister, said he was surprised at the timing of Lady Kinnock's remarks but not at their content.Labour MP Kim Howells, chairman of the intelligence and security committee and a former Foreign Office minister, said he was surprised at the timing of Lady Kinnock's remarks but not at their content.
"It's well known that if the currency devalues against other currencies, then you buy less for your money," he told BBC Radio 4's Today programme."It's well known that if the currency devalues against other currencies, then you buy less for your money," he told BBC Radio 4's Today programme.
"I don't think that this immediately is affecting the hard end of our counter-terrorism activities."I don't think that this immediately is affecting the hard end of our counter-terrorism activities.
"But undoubtedly what it will affect are those kind of softer, diplomatic efforts and, for example, trying to convince the Pakistani government and the regional governments in Pakistan that they should try to improve the material lives of people, and that will make them less susceptible to the overtures of al-Qaeda and the Taliban, and so on.""But undoubtedly what it will affect are those kind of softer, diplomatic efforts and, for example, trying to convince the Pakistani government and the regional governments in Pakistan that they should try to improve the material lives of people, and that will make them less susceptible to the overtures of al-Qaeda and the Taliban, and so on."
In December, Mr Brown pledged an extra £50m to help Pakistan fight terrorism in the Pakistan-Afghan border region, telling Pakistan's Prime Minister Yousuf Raza Gilani: "This is your fight but it is also Britain's fight."In December, Mr Brown pledged an extra £50m to help Pakistan fight terrorism in the Pakistan-Afghan border region, telling Pakistan's Prime Minister Yousuf Raza Gilani: "This is your fight but it is also Britain's fight."
There is no suggestion that this money is at risk, although the Foreign Office said it could not go into detail at this stage about which programmes were facing cuts.There is no suggestion that this money is at risk, although the Foreign Office said it could not go into detail at this stage about which programmes were facing cuts.