13.1 |
Resources
•
as a finance
ministry, to ensure an appropriate level of funding was provided
to
achieve the
UK’s objectives in Iraq and that it was used
cost‑effectively.17
This
Section describes the Treasury’s involvement on Iraq in relation to
both those roles.
The
Treasury’s involvement in planning for and supporting Iraq’s
post‑conflict economic
reconstruction
is described in Sections 6.4, 6.5 and 10.
The version
of the Ministerial
Code that was
current in 2003 stated that the cost of a
proposal
should be calculated and discussed with the Treasury before that
proposal was
submitted
for discussion at Cabinet level:
“It is the
responsibility of the initiating department to ensure that
proposals have
been
discussed with other departments and the results of these
discussions reflected
in the
memorandum submitted to Cabinet or a Ministerial Committee.
Proposals
involving
expenditure or affecting general financial policy should be
discussed with
the
Treasury before being submitted to the Cabinet or a Ministerial
Committee.
The result
of the discussion together with an estimate of the cost to the
Exchequer
(or
estimates, including the Treasury’s estimate, if the department and
the Treasury
disagree)
should be included, along with an indication of how the cost would
be met
(e.g. by
offsetting savings). The estimate of the cost should identify any
impact on
20.
Sir Nicholas
Macpherson told the Inquiry that departmental settlements were
the
main source
of funding for FCO activity in Iraq, including the UK’s diplomatic
presence in
Baghdad and
Basra, and for DFID’s contribution to the humanitarian and
reconstruction
effort.19
Before the
invasion, the Treasury worked with departments to produce
estimates
of the
potential cost of intervention and to ensure that, where
appropriate, sufficient
funding had
been set aside within their existing budgets.
21.
If departments
were unable to fund activities from their departmental
settlements,
they could
bid to the Treasury for additional funding from the
Reserve.
22.
The table
below shows the departmental settlements for the MOD, the FCO
and
DFID from
2002/03 to 2009/10 (under the 2002, 2004 and 2007
Comprehensive
17
Statement,
15 January 2010, page 1.
18
Cabinet
Office, Ministerial
Code, 2001.
19
Statement,
15 January 2010, page 1.
20
Email
Treasury [junior official] to Iraq Inquiry [junior official], 17
April 2014, ‘Further Queries Relating to
Resources’.
Figures are near cash settlements, in real terms (2008/09 prices).
Figures may differ from
Comprehensive
Spending Review settlement letters due to budget exchange,
inter‑departmental transfers
and other
factors.
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