To achieve our objectives we have to allocate our resources wisely.

We prepare annual accounts in accordance with orders given by HM Treasury to disclose Government Resources and Accounts Act 2000.

Our resource accounts give information on our assets, spending and risks which are set against our departmental goals.

Comprehensive spending review (CSR) 2007

As a result of the CSR our funding will grow from £1.6 billion in 2007-08 to £1.7 billion by 2010-11, with additional resources for counter-radicalisation programmes and significant investment in our embassy network. The review provides us with the resources to deliver:

• a £183 million capital investment programme, to improve security across the UK’s embassy network as well as provide for a new Embassy in Kabul; and
• additional funding of £37 million a year by 2010-11, to support the Government’s counter-radicalisation programmes, addressing weakness in governance, education, civil society, human rights and rule of law in priority countries.

This will be underpinned by a continuing programme of modernisation, cutting the cost of the overseas network through an innovative shared services programme and redeploying resources to the front-line.

Summary for our accounts for year end 2007

Net total resources expended was £1,925,518,000 against the Estimate of £1,983,313,000, resulting in an overall underspend of resources of £57,795,000 (2.9%).

The Winter Supplementary Supply Estimate included £11,000,000 non-operating income from the Home Office for biometric passports. The income was not received during the year and the FCO intends to effect the transfer in 2007-08.