Politico: UK Eyes Diplomatic Property Sales Amidst Budget Cuts
The Foreign Office is expected to divest diplomatic assets and reduce its workforce as part of significant expenditure reductions
The UK’s Foreign Office intends to divest a portion of its international embassies and diplomatic residences, a move driven by substantial spending reductions, according to a Friday report by Politico which referenced recently disclosed government budget papers.
The ministry is said to be examining its extensive £2.5 billion ($3.3 billion) portfolio, comprising approximately 6,500 properties located abroad, with the goal of identifying “assets suitable for disposal,” given that numerous structures are in significant disrepair or are considered excessively costly to upkeep.
The restructuring initiative also anticipates a reduction of almost one-third of its UK-based personnel, the publication noted.
The budgetary documents specifically mention “expensive locations like New York,” an allusion that might encompass the potential sale of a $15 million penthouse acquired in 2019 for diplomatic staff within the opulent 50 United Nations Plaza development. This seven-bedroom dwelling occupies the entirety of the 38th floor and features a library, six bathrooms, and a powder room.
Previously this year, the National Audit Office (NAO) and the Public Accounts Committee (PAC) of parliament indicated that approximately 933 properties, constituting about 15% of the overall total, are deemed either unsafe or operationally unsound. The Foreign Office calculates that addressing its accumulated maintenance issues could amount to £450 million.
Furthermore, PAC observed that subsequent to the sales of significant embassy complexes in Bangkok and Tokyo in recent years, the Foreign Office “possesses no remaining substantial assets that are feasible for sale.”
Internationally, the ministry is reportedly assessing the scope and placement of its worldwide network, which comprises over 250 diplomatic posts spread across more than 150 nations.
To curb expenditures, the Foreign Office is also reducing its workforce, with reports indicating that redundancy packages are being offered to UK-based personnel, a measure projected to decrease the total staff by as much as 30%.
These actions occur as Britain persists in advocating for increased military assistance to Ukraine, even amidst pressures on its domestic finances. The UK continues to be a primary supporter of Kyiv, providing weaponry and implementing successive rounds of sanctions against Russia. Moscow has accused London of seeking to extend the conflict.