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The Report of the Iraq Inquiry
505.  Mr Stephen Timms, Chief Secretary to the Treasury, approved the request on
30 May, but asked Mr Browne to take a government‑wide view of how to allocate the
funds, working with Mrs Beckett and others.334
506.  The next day, Mrs Beckett submitted a parallel request for additional funds for
an urgent programme of security works at the British Embassy Baghdad to meet the
increased threat that would follow Iraqiisation of security in the International Zone.335
Mrs Beckett explained:
“The £23m work in Baghdad … will only be affordable if other departments
who use the compound are prepared to contribute their full share … Of ‘teeth’
staff on the compound, and contractors involved in operational delivery (such
as police advisers), fewer than 50 percent are FCO … Of course, there are also
large numbers of contractors who provide security and life support, which is a
shared benefit.
“If we are not able collectively to make this investment, we would have to look hard
at how we could continue to operate safely and sustainably, meeting our duty of care
to all compound users and residents …”
507.  Mr Timms replied on 19 June. He welcomed FCO efforts to reduce and absorb
costs and agreed that the FCO should “work with other departments to agree joint
funding”.336 He expressed willingness to agree a request to use End‑Year Flexibility337
“if, after agreeing contributions with other departments and taking all viable steps to
reduce and absorb this pressure, the costs cannot be managed within your capital
budget this year”.
508.  The limited availability of hardened accommodation at the COB and the lack of
space to build more caused growing concern as the frequency and accuracy of IDF
attacks increased.338
509.  On 20 April. the IPU explained to Sir Peter Ricketts that IPAs employed by the FCO
contractor ArmorGroup were housed in the Skylink commercial caravan park, which
offered a lower standard of protection from IDF attacks. The Skylink accommodation no
longer presented an acceptable level of risk. In response, the FCO intended:
“… to continue to exert downwards pressure on overall civilian staff numbers in
Basra, so as to allow us to move all our IPAs into our new compound as soon as
possible … To this end, we and post will continue to look critically at all civilian slots,
334  Letter Timms to Browne, 30 May 2007, ‘Hardened Accommodation in Iraq’.
335  Letter Beckett to Timms, 31 May 2007, ‘Urgent Security Works at the British Embassy Baghdad’.
336  Letter Timms to Beckett, 19 June 2007, ‘British Embassy Baghdad’.
337  In the period covered by the Inquiry, the Treasury allowed departments to carry forward unspent funds
from one financial year to the next under the End‑Year Flexibility (EYF) system. Unspent funds would
otherwise have to be returned to the Treasury.
338  Minute IPU [junior official] to PS/PUS [FCO], 20 April 2007, ‘Accommodating ArmorGroup IPA at the
Contingency Operating Base in Basra’.
334
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