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The Report of the Iraq Inquiry
highlighted that need. Funding for such activities had typically been found
from the GCPP, crowding out other planned spending. The allocation for the
Stabilisation Fund would be £65m in 2008/09, £65m in 2009/10 and £115m
in 2010/11. In total, £50m/£50m/£100m of that allocation would be ring‑fenced
within the MOD’s 2007 Spending Review settlement. The balance (£15m in each
year) would be transferred from the GCPP. Any unspent funds could be switched
to core defence spending.397
644.  The Treasury told the Inquiry that it had no record of a response to that advice.398
645.  Mr Burnham wrote to Mr Browne the following day (24 July), to record the outcome
of the 2007 Spending Review for the MOD.399 Mr Burnham stated that the MOD’s
settlement included £50m in 2008/09, £50m in 2009/10 and £100m in 2010/11 for a
“Reconstruction Fund”. Mr Burnham described the Reconstruction Fund as “one step
in a planned re‑ordering of the way the Government handles planning and expenditure
on the prevention and stabilisation of conflict”.
646.  Following a conversation between Mr Miliband and Mr Alexander, Mr Miliband’s
Private Secretary wrote to Mr Alexander’s Private Secretary on 26 July setting out the
challenges faced by the FCO in securing funding for its work in Iraq and Afghanistan,
and expressing the hope that DFID and the FCO could work together to develop a
mechanism which would more effectively support the comprehensive approach.400
In the letter, which was not copied to any other department, Mr Miliband’s Private
Secretary rehearsed the arguments made in Mr Lyall‑Grant’s submission of 9 July.
647.  DFID has told the Inquiry that it does not have any record of replying to that
letter.401
648.  Mr Burnham wrote to Mr Miliband in October, to record the outcome of the 2007
Spending Review as it affected the Conflict Prevention Pools.402 Mr Burnham stated that
the Review provided a “healthy increase” in the funds available for conflict prevention
and stabilisation, and set out key reforms in the way that conflict issues were handled
within Government:
From 2008/09, the GCPP and ACPP would be merged into a single Conflict
Prevention Pool.
397 Minute Treasury [junior official] to Chief Secretary, 23 July 2007, ‘CSR2007 – Conflict Prevention and
Post‑Conflict Stabilisation’.
398 Email Treasury [junior official] to Iraq Inquiry [junior official], 17 April 2014, ‘Further Queries Relating to
Resources’.
399 Letter Burnham to Browne, 24 July 2007, ‘Comprehensive Spending Review 2007: Ministry of Defence
Settlement’.
400 Letter FCO [junior official] to DFID [junior official], 26 July 2007, ‘Funding a Comprehensive Approach
in Iraq and Afghanistan’.
401 Email DFID [junior official] to Iraq Inquiry [junior official], 8 April 2013, ‘Inquiry Query’.
402 Letter Burnham to Miliband, October 2007, ‘Comprehensive Spending Review 2007: Settlement for the
Conflict Prevention Pools and Stabilisation Aid Fund’.
550
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