We must boost Britain’s lagging diplomatic power for a positive EU outcome

Jonathan Lindsell, 28 November 2015

A recent Chatham House report by former UK ambassadors to America, Russia and Nato highlighted that Britain’s Foreign Office is seriously diminished. Funding has been cut by a fifth since 2008. Spending per capita is now lower than in America, France, Australia, Canada or New Zealand. Most countries are increasing investment in their negotiation capacity – Germany has boosted funds so now spends 50% more than Britain. Emerging economies like Turkey, China and Indonesia have also bolstered their diplomatic corps. This is an odd time to be retreating.

Mindful of this, George Osborne froze the Foreign Office budget in Wednesday’s spending review. However, if we look at the government’s attempted EU renegotiation, let alone at the large challenges ahead, it is clear that merely deferring further cuts is not enough.

Britain voting to remain in the EU would not mean our diplomats could relax. Whatever renegotiation promises are made will need to be defended and enforced, possibly over the protests of different EU leaders to those David Cameron is currently wooing. Then there would still be day-to-day tussles from the EU budget to free movement reform to the priorities of future trade deals. Soon there will be another treaty proposal to consolidate the eurozone’s fiscal and economic governance: Britain will need to lead the non-euro states demanding safeguards. If about 40% of Britons voted to leave Europe, it would give the government a serious electoral impetus to rebuff further EU integration: exemptions and blocks need diplomatic effort.

Whitehall’s challenge may be even greater if we vote to leave. Out campaigners think Britain would do better on the world stage free of the EU, which requires a joint commission position for bartering free trade deals. A recent Civitas publication shows how Britain could aim to replicate Switzerland’s proactive free trade strategy after Brexit.

This would, however, need diplomats. Free trade negotiations take numerous meetings between partners, plus consultations with domestic industries. After voting for Brexit, Britain would need to i) negotiate its exit from the EU, ii) negotiate continuity trade agreements with current EU partners like South Korea, South Africa and Mexico, and iii) set about winning new deals quickly with emerging markets or big players, to ensure prosperity and convince the markets that Britain is not turning insular.

The Foreign Office would also need to exert Britain’s influence on global standards bodies like the WTO, UNECE, International Labor Organization and Basel Committee. In some chambers of these bodies Britain has been represented by the EU for decades. Moreover, established interest-group blocs already exist in each, which Britain would need to work hard to join to have a real voice.

The civil service does not have the diplomatic personnel to tackle these all at once. Locking in the Foreign Office cuts is not reassuring when these challenges are potentially just a year away. The Commonwealth heads of government meet today in Malta, showing Britain’s vast array of international relationships. Given our impending challenges, these cannot be allowed to wilt.