The FCDO has responsibility for delivering £8,115 million of official development assistance (ODA) spend this year, approximately 80% of total UK ODA. I have recently concluded the FCDO’s internal business planning process to allocate this budget for 2021-22 in accordance with UK strategic priorities against a challenging financial climate as a result of covid-19. This statement updates the House on the conclusions of that process.
Throughout the business planning process, we strived to ensure that every penny of the FCDO’s ODA spend brings maximum strategic coherence, impact and value for taxpayers’ money.
The resulting portfolio marks a strategic shift, putting our aid budget to work alongside our diplomatic network, our science and technology expertise and our economic partnerships in tackling global challenges. We will focus on core HMG priorities for poverty reduction, including getting more girls into school, providing urgent humanitarian support to those who need it most, and tackling global threats like climate change, covid-19 recovery and other international health priorities. Based on OECD data for 2020, the UK will be the third largest donor within the G7 as a percentage of GNI.
The integrated review has helped guide the process, by setting out how an independent and sovereign global Britain will act as a force for good and use its influence to shape the future international order. To deliver that vision I have allocated resources to the seven priorities I set out to Parliament on 26 November:
Climate and biodiversity. FCDO will maintain a strong climate and biodiversity portfolio of £534 million as we host COP26. In total, the FCDO will deliver more than £941 million of activities this year, across all themes, that count towards the UK’s flagship £11.6 billion international climate finance target.
Global health security. FCDO will spend £1,305 million on global health. We will focus on the UK’s position at the forefront of the international response to covid-19, through our commitments to COVAX, GAVI and WHO, and through bilateral spend where the need is greatest in Africa.
Girls’ education. FCDO will spend £400 million on girls’ education. We will invest directly in over 25 countries, helping to achieve the global target to get 40 million girls into education and demonstrating our commitment at this year’s Global Partnership for Education summit.
Humanitarian preparedness and response. FCDO will spend £906 million to maintain the UK’s role as a force for good at times of crisis, focusing our work on those countries most affected by risk of famine, including Yemen, Syria, Somalia, and South Sudan. A £30 million crisis reserve will enable us to respond rapidly to new crises.