Boris Johnson to announce abolition of Dfid with Foreign Office to have direct control of aid budget

International Development secretary Anne Marie Trevelyan, pictured above, is being lined up for a new role Minister of State in the Foreign Office after a merger.

The merger is understood to be backed by both permanent secretaries in the departments with DfID’s Matthew Rycroft said to be “forward leaning on this”.

An all staff meeting is understood to have been called in the Foreign Office on Wednesday.

The merger between the FCO and DfID has been waiting for the publication of a cross-government integrated review by Professor John Bew from the Number 10 policy unit.

The Bew review was looking specifically at how to administer the UK’s £14 billion aid budget as part of a review of how the UK interacts with the world.

Mr Johnson is expected to announce the changes as he sets out his vision for Britain’s future as a global trading power this afternoon in a statement in the House of Commons.

The Prime Minister will tell the House of Commons that Brexit has provided a huge opportunity to exploit markets beyond the EU to the advantage of UK businesses and consumers.

Mr Johnson’s statement to the Commons, titled Global Britain, appears to be designed partly to put pressure on Brussels by highlighting the advantages the UK will have over the EU by signing advantageous trade deals around the world, rather than being bound by EU competition laws.

It will send a clear message to EU negotiators that if they refuse to give Britain a good trade deal, they risk losing billions of pounds in export trade that will go elsewhere.

It comes a day after Mr Johnson told EU leaders he will not in any circumstances extend the Brexit transition period, which expires on December 31, even if the two sides cannot agree a trade deal before then.

The UK is currently negotiating trade deals with the US and Japan among other countries and hopes to secure better terms with both countries than those on which they trade with the EU.