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The Report of the Iraq Inquiry
between Government departments” which had consumed significant amounts of senior
officials’ time.10
48.  Departments found it particularly difficult to find funding for activities that emerged
“in‑year” or appeared to fall between the boundaries of departments’ responsibilities
(such as activities to promote political outreach or support the Iraqi media). A number
of civilian activities that Ministers had identified as a high priority – including, in 2003,
support for the Iraq Media Network and, in 2006, the first Better Basra Action Plan –
were funded late, and only in part.
49.  Departments recognised in mid‑2003 that the arrangements for funding civilian
activities were not working well. In September, the Treasury rejected a proposal from
departments for a new pool for funding non‑military activity in Iraq, on the grounds that it
might lead to an increase in claims to the Reserve.
50.  The UK’s deployment into Helmand province, Afghanistan, in 2006 prompted
departments, led by the FCO, to revisit the arrangements for funding civilian post‑conflict
activities. Initial proposals focused on enhancing or complementing the GCPP (on the
assumption that the Treasury would not allow access to the Reserve for non‑military
activities).
51.  At the same time, MOD claims on the Reserve for UORs increased significantly as
security in Iraq deteriorated, expenditure on Afghanistan increased, and the Government
provided new equipment for the Armed Forces.
52.  The Treasury continued to agree the MOD’s claims against the Reserve, but by
April 2007 had concluded that the UOR programme had become a straightforward
supplement to the MOD’s Equipment Programme rather than a response to urgent and
specific requirements in a theatre of operations.
53.  In July 2007, the MOD and the Treasury agreed a new arrangement for funding
UORs designed to shift the focus of the MOD’s Equipment Programme towards current
operations. The new arrangement was expected to be cost neutral for the MOD.
54.  There were also changes to the arrangements for funding non‑military activities.
In July, the Treasury announced the creation of a new Stabilisation Fund (later
renamed the Stabilisation Aid Fund – SAF) to fund immediate civilian support to
military operations (activities which had previously been funded from the GCPP).
The GCPP was combined with the Africa Conflict Prevention Pool to form the Conflict
Pool. New governance arrangements sought to link more closely expenditure from the
SAF and the Conflict Pool with UK strategy.
55.  The changes to the arrangements for funding UORs did not affect operations in Iraq,
which were by this time generating fewer demands for UORs.
10  Public hearing, 20 January 2010, pages 36–37.
578
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