The foreign exchange adjustment account will be a departmental unallocated provision (DUP) which the Foreign and Commonwealth Office (FCO) will draw on as necessary to manage the impact of foreign exchange fluctuations. It is not a return to the Overseas Price Movements Mechanism under which the FCO budget was adjusted from the Treasury Reserve to reflect foreign exchange rate movements.
The Foreign and Commonwealth Office publishes details of disposals quarterly in a letter to the Foreign Affairs Committee. For commercial reasons and in order to realise maximum value from disposals, we do not publish details of planned disposals in advance.
The Foreign and Commonwealth Office (FCO) grant in aid to the BBC World Service for 2010-11 is £267 million in resources and capital. The FCO grant in aid to the British Council for the same period is £194 million in resources and capital. The BBC World Service will make available £7.7 million to the FCO including an underspend of £4 million in 2009-10. The British Council will make available £5 million to the FCO. These contributions will not result in permanent reductions in their baseline, but are for 2010-11 only.
FCO Services Trading Fund will make a special dividend payment to the FCO of £3 million in financial year 2010-11.
No other non-departmental public bodies or agencies for which the FCO is responsible plan to make similar contributions to the FCO budget in 2010-11.
The value of the contributions from the British Council and the BBC World Service to the Foreign and Commonwealth Office (FCO) budget for 2010-11 are expected to be £7.7 million and £5 million respectively, while FCO Services Trading Fund will make a special dividend payment of £3 million to the FCO. Details of the FCO programme of streamlining have yet to be finalised.