He said: "The UK possesses the third biggest aid budget and diplomatic network in the world.
“We owe it to our people to make best use of these assets.
“The British taxpayer has a right to expect that we will achieve the maximum value for every pound that we spend.
"It makes no sense to ask whether this amounts to aid or foreign policy - they are one and the same endeavour and are designed to attain the same goals which are right in themselves and serve the same goals."
It follows a review into UK aid spending by crossbench peer Lord Bew.
The Bew review assessed the UK's £14 billion aid budget as part of a review of how the UK interacts with the world.
The Department for International Development will now join with the FCO, with both sharing ministers since the February reshuffle.
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