World’s poorest to be hit with up to £30bn less development support due to political decision to slash aid budget

• Inquiry: Future of UK aid: reductions to the aid budget

Chair of the International Development Committee, Sarah Champion, has today written to the Foreign Secretary seeking more details around the decision to shrink the aid budget to 0.5% of annual GNI. The Committee heard evidence arguing that the move was a purely political decision that will have little impact on the UK’s economic situation.

The letter follows the Committee’s recent hearing where it discussed the impact of cutting the aid budget to 0.5% from 0.7% of GNI. While the UK is unlikely to notice any change to the economic situation as a result of the 0.2% cut, some of the world’s poorest and most vulnerable people are likely to be hit very hard with what is estimated to be a £25-£30 billion drop in development spend over the next five years.

During the evidence session, the Committee also explored the Government’s new framework for UK aid, from which ‘poverty reduction’ is currently missing. To ensure the UK retains its reputation as being a world-leader in development, and remains compliant with UK development law, the Committee heard that ‘poverty reduction’ should be a key focus within the framework.

Chair's comments

Chair of the International Development Committee, Sarah Champion MP, said:

“Leaving the world’s poorest and most vulnerable with a £30bn funding black hole would be immoral and totally unacceptable, particularly when globally we are all tackling a pandemic. As has been made abundantly clear in our inquiries on coronavirus in the global south, the secondary impacts of the pandemic are severe. From children out of school, more cases of gender-based violence, and economies and healthcare systems nearing collapse, now is not the time to turn our backs on the world’s poorest.

“During our recent evidence session, we heard compelling arguments that the decision to slash the aid budget is unlikely to have any meaningful benefit to the UK’s economic position. If this reduction is only temporary as the Government has assured us, why bother with changing legislation? Why is the Government ignoring ‘poverty reduction’ in its new aid priorities – it should be underpinning the framework!

“Development boosts our international standing, and supporting the world’s poorest is also the right thing to do – why is the Government so intent on ignoring these positive arguments at the exact moment when we should be defining Global Britain as a force for good.

“I am writing to the Foreign Secretary for more answers on all these issues. We will also have the opportunity to question him in person in oral evidence in January.”

Further information

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