The UK’s ambassadors will have “KPIs that contribute to our economic growth” as diplomats shift to a more economic mindset, the foreign secretary has said.
David Lammy told an audience of businesses that he wants the Foreign, Commonwealth and Development Office (FCDO) to become the “international delivery arm of the government’s missions, the first of which is kick starting economic growth”.
Speaking at the British Chambers of Commerce (BCC) conference – Driving International Trade 2025 – in the City of London on Thursday, Lammy pledged: “For the first time, our ambassadors and our missions in these key markets will have KPIs that contribute to our economic growth.”
Lammy told City AM: “I want to ensure that the FCDO is absolutely the engine of delivering growth as a central mission on behalf of this government, and the City can play a huge role in supporting us and taking part, I hope, in the initiatives I announced.”
The foreign secretary used his speech to announce plans for: a new geopolitical unit impact unit based at the foreign office to share insights with firms; diplomats to be seconded to leading British businesses and vice versa; a new advisory hub within the BCC to support SMEs with geopolitics; and a quarterly business engagement series, at Lancaster House.
He also confirmed all of the UK’s ambassadors and high commissioners would become honorary presidents of their host countries’ Chambers of Commerce, as well as working with regional trade commissioners to produce strategic economic growth plans.
Foreign office ‘upskill’
It comes as the foreign office aims to shift to a more growth-based focus, which Lammy said would require “both a serious upskill and a sustained cultural transformation”.
Lammy, who also announced a “second diplomat” would be seconded to the UK’s largest aerospace, defence and security firm, BAE Systems, said: “From the next financial year, all ambassadors in priority markets will be assessed against their delivery of trade and investment wins overseas.
“From now on, I’ve told my ambassadors that they should give equal weight to their contacts in business as well as in politics.”
And he added: “I know that in 2025, every successful CEO is a form of foreign secretary, and the team around you know what it means to be diplomats.
“When I need to understand key countries, I found it’s often you in business that knows the key players best, that sense the risks first, but see the opportunities clearest, and can provide the most unvarnished advice.”
Hinge markets
Lammy said the UK’s closest relationships set to “generate the greatest return on investment for UK plc in the medium term” were still the European Union, China and the United States.
But he also said he wanted FCDO staff to “look beyond the obvious”, citing a recent visit to Japan with business secretary Jonathan Reynolds.
But pressed further by City AM, Lammy added that “detailed work is going on in the department to look at these new hinge markets that are so important to our future economy.
“Clearly, India is hugely important. There are countries in the Gulf, but there are emerging economies like Indonesia, where we’ve got to play a greater role.”
He stressed: “I do want our diplomats spending more time in your businesses and you spending more time with us.
“I do want our ambassadors being far better connected to your businesses at work overseas and indeed in this country… reminding us that we aren’t just there to understand the world.”
Training ambassadors
While BCC director-general Shevaun Haviland told City AM: “The British chambers work closely with our embassies, so they generally have good relationships with embassies, consulates, and high commissions.”
But she stressed: “What we’ve been saying to the FCDO is let’s be a bit more systematic and intentional about that. Let’s help train our ambassadors, especially if our ambassadors don’t have a lot of commercial background on our understanding.
“Let’s brief them. Let’s train them so then when they go to market, [and] they automatically become President of the Chamber… but that means they’re much closer to UK businesses in places they can use the UK, [and] UK pls to help them navigate… their new territory.”
Haviland stressed: “They should be gold dust for the ambassador. They should be strong partners.”
The BCC boss, who will take a delegation of leading British businesses to Washington, alongside Reynolds to meet with the UK’s US ambassador Lord Peter Mandelson, added: “He certainly has a tightrope to tread. I do not wish that role on many people.
“I think Lord Mandelson’s definitely the man for the job and we’re looking forward to seeing him [in Washington].”
Ali Lyon contributed reporting.