Charities and scrutiny bodies have criticised the government’s “disgraceful” and “short-sighted” decision to cut the UK aid budget and urged the prime minister to reconsider his decision.
Keir Starmer announced plans yesterday to cut the Official Development Assistance (ODA) budget from 0.5% of gross national income (GNI) to 0.3% to boost defence spending.
The ODA budget was previously cut in 2020 from 0.7% to 0.5% of GNI to support public finances and the economy during the Covid-19 pandemic.
Labour pledged to return aid spending to 0.7% “as soon as fiscal circumstances allow” in its election manifesto but has now cut the ODA budget further.
Starmer said he would bring forward his party’s manifesto pledge to spend 2.5% of gross domestic product (GDP) on defence from 2030 to 2027, with plans to increase it further to 3% in the next parliament.
“I’ve decided that we’ll fund the initial increase in defence spending by cutting our spending on overseas development, moving from 0.5% of GNI to 0.3%,” he said.
Charities warned that reducing ODA spending to 0.3%, the lowest level in 25 years, will have a “catastrophic” impact on millions of people facing humanitarian crises.
‘Devastating consequences’
Romilly Greenhill, chief executive of Bond, called the move “short-sighted and appalling”, adding: “Slashing the already diminished UK aid budget to fund an uplift in defence is a reckless decision that will have devastating consequences for millions of marginalised people worldwide.”
She said following in the US’s footsteps would undermine the UK’s global commitments and credibility and weaken national security interests.
Rose Caldwell, CEO of Plan International UK, said it is “a catastrophic blow to an aid budget that has already been cut to shreds”.
“[The] cut will divert funding from some of the most devastating humanitarian crises in the world,” she said.
“It’ll mean less support for the vast numbers of people suffering in Gaza and Lebanon. It’ll mean less for the millions stricken by conflict and hunger in Sudan. And it’ll mean less for girls affected by poverty, violence, and crises around the world.”
Meanwhile, Hannah Bond, co-CEO of ActionAid UK, said reducing the ODA budget to “less than half of our legal obligation” is “reckless”.
“That it has done so to increase military spending only adds insult to injury,” she said.
“There is no justification for abandoning the world’s most marginalised time and time again to navigate geopolitical developments.
“This is a political choice - one with devastating consequences. At a time when USAID has been gutted and development initiatives abandoned by one of the world’s largest donors, the UK government appears to be following suit rather than standing against this dangerous trend.”
‘Reverse this shameful and dangerous move’
ActionAid, alongside many other charities, called on the government to “reverse this shameful and dangerous move before it causes irreparable damage”.
Natalie Roberts, executive director of Médecins Sans Frontières UK, said: “In recent years, the scale and complexity of humanitarian crises have escalated dramatically, particularly in regions such as Sudan, the Democratic Republic of Congo and Gaza.
“The gap between needs and an effective and properly funded humanitarian response is widening at an alarming rate.
“At this critical juncture, the UK has a unique opportunity to lead by example. Instead of retreating from its responsibilities, immediate action is required to significantly increase, safeguard, and deploy essential medical and humanitarian aid. This is crucial to address the pressing needs of the world's most vulnerable people.”
She urged the government to “commit to a robust and effective aid strategy that prioritises the health and well-being of those in dire need”.
Sarah Champion, chair of the International Development Committee, also called on Starmer to rethink his announcement.
“Cutting the aid budget to fund defence spending is a false economy that will only make the world less safe,” she said.
“Conflict is often an outcome of desperation, climate and insecurity; our finances should be spent on preventing this, not the deadly consequences.”
Scrutiny body: ODA is ‘vital for low-income countries’
Meanwhile, the Independent Commission for Aid Impact (ICAI), a non-department body that scrutinises UK aid spending, today published a report setting out the current picture on UK development.
The report finds that ODA spending within the UK has risen from £628m in 2020 to support refugees and asylum seekers to £4.3bn in 2023, representing 28% of the total aid budget.
This increase in domestic spending, coupled with reductions to the aid budget since 2020, has “significantly impacted traditional aid programmes”, the ICAI said.
“Funding directly to developing countries has fallen from £5.9bn in 2019 (57% of bilateral aid) to £2.7bn in 2023 (27%), with allocations to individual country partners reduced suddenly.”
It found that the humanitarian aid budget halved in 2021 from £1.5bn to £743m in 2023, but has partially recovered since then as the UK responded to humanitarian crises in Ukraine, Afghanistan and Sudan.
The ICAI added that “shifts in the UK’s spending priorities have taken place against a challenging global backdrop where development progress has slowed and conflict, climate change and extreme poverty have become increasingly interconnected”.
“While ODA represents just a small share of global development finance, it’s vital for low-income countries and those affected by conflict and fragility.”
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