13.1 | Resources

638. The Treasury told the Inquiry that it has no record of a response to Mrs Beckett on

that point.394

639. Mr Pattison commented to FCO colleagues on 11 July that Mrs Beckett’s proposal

“didn’t get past first base” with the Treasury.395

640. Mr Mark Lyall‑Grant, FCO Political Director, advised Mr David Miliband, the new

Foreign Secretary, on 9 July that he should try to secure the support of Mr Browne and

Mr Douglas Alexander, the new Development Secretary, for a new funding mechanism

to support the civilian elements of the UK’s comprehensive approach in Afghanistan

and Iraq.396

641. Mr Lyall‑Grant described the problem:

“There is no satisfactory Whitehall method to resource high priority, non‑military work

in conflict areas, in support of Ministerially‑agreed policy objectives. Afghanistan and

Iraq are cases in point. Ministers have long agreed that a comprehensive approach

is required … But there is no mechanism to fund in‑year priorities for this. The MOD

can call on the Reserve for additional military expenditure. HMT [the Treasury] tell

other departments that their expenditure … must be funded from re‑prioritisation.

At best this significantly slows down our ability to respond. In real terms it often

means the non‑military elements of the campaign are under‑funded, with a direct

impact on the length of time the military need to remain.”

642. Mr Lyall‑Grant identified two main possible solutions: allowing bids to the Reserve

to include both military and civilian costs; or establishing a ring‑fenced, multi‑year

contingency fund from which DFID, the FCO and others could draw.

643. On 23 July, a Treasury official invited Mr Andy Burnham, the new Chief Secretary

to the Treasury, to agree to establish:

• A single Conflict Pool, combining the GCPP and the ACPP. The Conflict Pool

would be managed by DFID, with advice from the MOD and FCO. A single Pool

would “drive a more consistent and coherent approach to conflict prevention and

poverty reduction, and … improve the management of the Pools overall”.

• A Stabilisation Fund, which would be “owned by the MOD but managed jointly

with DFID and FCO”. Experience in Iraq and Afghanistan had highlighted

the need for resources to be available for “immediate civilian support to

military operations (QIPs, shorter‑term development issues etc)”. Mrs Beckett

(the previous Foreign Secretary) and military commanders had repeatedly

394 Email Treasury [junior official] to Iraq Inquiry [junior official], 17 April 2014, ‘Further Queries Relating

to Resources’.

395 Email Pattison to Lyall‑Grant, 11 July 2007, ‘Funding the Comprehensive Approach in Afghanistan and

Iraq’.

396 Minute Lyall‑Grant to Foreign Secretary, 9 July 2007, ‘Funding a Comprehensive Approach in Iraq and

Afghanistan’.

549