ODA Budget

(Urgent Question): To ask the Secretary of State for Foreign, Commonwealth and Development Affairs if he will make a statement on reductions in the overseas development assistance budget.

I thank my right hon. Friend for his question. The pandemic has resulted in the biggest drop in UK economic output in 300 years, and it has had a major impact on public finances; the deficit this year is projected to be double its peak during the financial crisis. That is why we had to take the tough—but, I assure him, temporary—decision at the end of last year to reduce the official development assistance target from 0.7% of GNI to 0.5%.

In spite of that, the UK will spend £10 billion on aid in 2021, making us the third largest donor in the G7 as a percentage of our gross national income. Not only that, but we will be the third largest bilateral humanitarian donor, spending at least £906 million this year, and we will invest at least £400 million bilaterally on girls’ education in over 25 countries. We will deliver £534 million of bilateral spend on climate and biodiversity, a doubling of the average spend between 2016 and 2020. We have committed £548 million to COVAX to provide vaccines for poorer countries, and we are multiplying our impact by integrating our aid spend with our diplomatic network, our science and technology expertise and our economic partnerships.

This Government’s commitment to the UK’s being a leader in development has not changed. The integrated review reaffirmed our pledge to fight against global poverty and to achieve the UN sustainable development goals by 2030, and we reiterate our commitment to return to 0.7% when the fiscal situation allows. This week’s new allocations show that we are following through with the vision that the Prime Minister set out in the integrated review. The way the UK applies our world-leading investment and our expertise must be strategic, in line with the approach defined by the integrated review, it must represent best value for taxpayers’ money, and it must deliver results by tackling poverty and improving people’s lives around the world.

To achieve this, the Foreign, Commonwealth and Development Office has conducted a thorough review of aid spending to ensure that we target every penny at the highest-priority global challenges. The Foreign Secretary’s written statement to the House last week set out how this sharpened focus of the FCDO’s aid portfolio lies behind seven strategic priorities for poverty reduction. These are: climate and biodiversity, covid-19 and global health security, girls’ education, humanitarian preparedness and response, science and technology, open societies and conflict resolution, and economic development and trade. We believe that this plan will deliver the greatest impact where it matters most.

When Germany will now exceed the 0.7% target, France is now pledged to hit it and the US is increasing aid spending by $15 billion, why is Britain, chair of the G7, breaking its promises to the poorest and the election manifesto commitment on which we were all elected, and which this country previously has so proudly upheld? Do the Government understand that the aid cut to Syria undermines our key ally in the middle east, Jordan, and will increase the flow of refugees into Europe? Do the Government realise that sending 300 troops to Mali while cutting humanitarian aid to the Sahel is a failure of understanding that puts our troops at greater risk? Why are the Government derailing our Prime Minister’s pledge on girls’ education with cuts that will result in 4 million fewer girls going to school while Britain is simultaneously hosting an international replenishment conference asking others to fund this key British objective?

The 0.7% is not just a commitment to the world’s poorest enshrined in law by this House; it is a reflection of the kind of country we aspire to be and the values that we uphold. Ninety-five per cent. of red wall voters approve of life-saving humanitarian aid, but that is exactly what the Treasury is cutting in their name. We are cutting £500 million in humanitarian aid. This will mean that 3 million women and children will not now receive life-saving support. Is it not clear that the original estimate of 100,000 souls who will die as a result is now a tragic understatement? This dreadful political—not economic—decision shames our country and our Government. It should shame us all.

I completely understand the passion with which my right hon. Friend speaks, but the simple truth is that the UK economy is 11.3% smaller than it was last year and is undergoing the worst economic contraction for 300 years. The coronavirus has put in place a unique set of circumstances to which we are forced to respond. Yet despite these difficulties—despite this economic impact—the UK will remain in both absolute terms and percentage terms one of the largest ODA donor countries in the world, and will remain the third largest ODA donor in the G7.

My right hon. Friend speaks of the areas where the UK wishes to be a force for good in the world. We are still absolutely committed to making sure that we use our ODA spend in areas such as girls’ education, the environment and climate and others, but with our diplomatic efforts as part of the joint Foreign, Commonwealth and Development Office as a force multiplier to ensure that the money we spend is amplified by our diplomatic efforts both bilaterally and on the world stage. I remind him that when the fiscal circumstances allow, we are committed to returning to the 0.7% of GNI which he, others and indeed this Government are so rightly proud of.

Last week the Foreign Secretary exposed his fear of scrutiny by trying to sneak out a written statement on his callous aid cuts. Today, having been forced to come to face up to his decisions by the right hon. Member for Sutton Coldfield (Mr Mitchell), he has once again evaded scrutiny and hidden behind one of his Ministers instead.

Make no mistake, slashing humanitarian support in the middle of a global pandemic is callous and incredibly short-sighted. People will lose their lives as a result of the cuts, and we will all be less safe. As the only G7 nation to cut aid, it is a retreat from our moral duty and will weaken our position on the world stage.

The statement published last week was light on detail, so will the Minister tell us whether ambassadors have been informed of their allocated budgets and the date when all FCDO country office budgets for 2021 will be made public? Will impact assessments be conducted for each country? When will they be forthcoming? Will he explain the Foreign Secretary’s comment:

“Nobody is going hungry because we have not signed cheques”?

Sixteen million Yemenis and 12 million Syrian people are on the brink of famine. How does the Minister think the respective 60% and 30% cuts in aid will impact people in those countries?

The impact of the cuts on the Government’s own stated priorities are stark—from education, which has been cut by 40%, to health programmes such as the International Rescue Committee’s Saving Lives in Sierra Leone, which has helped more than 3 million people and has now been cut by 60%. In a year when Britain will be hosting the G7 and COP26, the cuts are a shameful act and part of a pattern of retreat from the world stage by this Conservative Government. Rather than continuing to treat Parliament with contempt, will the Minister commit to putting the cuts to a vote at the earliest opportunity?

The hon. Lady speaks about my right hon. Friend the Foreign Secretary attempting to avoid scrutiny; that would carry a bit more credibility had it not been for the fact that he specifically put the written ministerial statement in the public domain ahead of his appearance at the International Development Committee so that the Committee could grill him on that statement.

The hon. Lady made a point about our commitment to overseas development and assistance; I remind her of the answer that I gave a few minutes ago: we are facing an unprecedented set of circumstances. I also remind the hon. Lady that this is one of, if not the, most difficult economic years that the country has faced in a number of centuries. Even against that backdrop, we are committed to 2.5% of GNI—a proportion that previous Labour Governments managed to hit only a couple of times in the most benign economic circumstances. I am proud of the fact that this Government remain committed to being one of the most generous aid donors in the world and, as I say, to linking our diplomatic efforts with our development efforts to maximise the force for good in the world that we can bring about.

The British Government first committed to the 0.7% target in the year I first stood for Parliament. They would reach the target when they could; it took 39 years. The Minister’s prepared statement said that the Government intend to get back to 0.7% when circumstances allow. If they said that would be next year, the House would partly understand, but as the Minister has not, we have to assume that it will be more than a year.

A previous Minister, my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), said:

“The UK aid strategy sits firmly in our security and defence strategy. The 0.7% spent on international aid and the 2% commitment to NATO are the 2.7% that we spend, in our international interests, on securing a safer, more stable and more prosperous world.”—[Official Report, 13 June 2016; Vol. 611, c. 297WH.]

Will the Minister say how much would be saved by the reduction in the economy—the 11.2% to which he referred? That would be a big cut, but it is provided for in the legislation. Will he kindly read out the words that the current Prime Minister reinforced in our 2019 manifesto, when he added the word “proudly” to the commitment that repeated what was said by two previous Conservative Prime Ministers?

I completely understand the point that my hon. Friend makes. No one could have predicted the once-in-a-generation health and economic event that was covid-19 and we have had to take unprecedented action to respond to that. I can personally attest to the passion of both my right hon. Friends—the Foreign Secretary and the Prime Minister—for the priorities that we have set out in response to the urgent question from my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). The reason why we have not set a specific date in respect of the point at which we will get back up to 0.7% is that none of us can predict that—this is a genuinely unprecedented set of circumstances. The quicker we can get the British economy back into shape, the quicker we can get back to committing to development expenditure at the level that we would all want it to be at.

Last week, the Secretary of State admitted not only that 60% cuts would fall on Yemen, the world’s worst humanitarian disaster, but that no impact assessment had been undertaken. He shamefully hid behind the pitiful excuse of needing to make difficult decisions. Was it a difficult decision to use the money to deliver a windfall for the defence budget and increase spending on nuclear weapons, or was it simply an ideological decision that everyone can see through clearly? The global covid pandemic should not be used as an excuse to cut aid. Indeed, it is our essential duty to increase support to the world’s most vulnerable during this crisis.

While this Government are intent on breaking their manifesto commitment to maintaining the 0.7% target, the SNP has pledged to increase the Scottish Government’s aid budget by 50% if re-elected next week. Indeed, the rest of the G7 have increased their aid spending as a result of covid, and over 200 non-governmental organisations have accused this Government of delivering a “tragic blow” to the world’s poorest people. Does the Minister believe that the G7 and all these NGOs are wrong and that the UK Government are right? Is this not further proof that the reality of global Britain is, indeed, rather little Britain?

I remind the hon. Gentleman that the UK remains, in both absolute terms and percentage of GNI terms, one of the most generous ODA-donating countries in the world. He mentions the impact of coronavirus. The UK has donated over half a billion pounds to support COVAX to help to vaccinate the poorest countries in the world. In addition to that, we have commitments both for science and technology and for health preparedness as priorities. The UK Government have had to make—

The hon. Gentleman can shake his head, but the simple fact is that the UK Government have had to deal with an unprecedented, once-in-300-year economic as well as health event, and we have to respond, but we do so in a way that maintains our commitment to the poorest in the world.

The integrated review identifies the United Kingdom as a “soft power superpower”, citing as one of the reasons our contribution to international development. Exactly how is that position going to be enhanced by the action of cutting aid to the world’s poorest, including those in slavery? I note that slavery was not even referred to in the written statement issued by the Foreign Secretary last week.

My right hon. Friend is absolutely right that the UK is viewed globally as a soft power superpower. The conversations I have had since the announcements have been made demonstrate that the international community still very much sees the UK as a soft power superpower. Our development expenditure is an important part of that, and that is why we are committed to getting back to 0.7% when the fiscal situation allows. We will continue to work with partners, and to lobby, co-ordinate and convene our international friends and partners to support the poorest in the world. We will not step back from that just because of the temporary financial situation we find ourselves in. I can assure her that she and I and, as I say, the Prime Minister and the Foreign Secretary are as one, in that we aspire to be a global leader in soft power and in development, and we will recover back up to 0.7% as soon as the fiscal situation allows.

Over the last 12 months, this Government have asset-stripped our foreign aid programme, and along with it done serious damage to the UK’s global standing, security and soft power. All this was done without consultation or scrutiny by this House or the aid sector. To be quite honest, I am staggered that the Secretary of State tries to justify there being scrutiny of this House by sneaking out a statement last Wednesday before my Committee met the following morning. Can the Minister please tell us the date when this House will be told the funding allocation for aid projects by countries, and when will he publish the impact assessment that should have been done alongside the decision?

The written ministerial statement was put out so that the hon. Lady’s Committee would be able to scrutinise the Foreign Secretary. It is unusual, perhaps even unprecedented, to set out thematic allocations at the beginning of the financial year, as the Foreign Secretary has done via his written ministerial statement last week and in his IDC evidence. Detailed information about how we will spend ODA is usually set out in the “Statistics on International Development” process in the year following the spend, and programme-by-programme information is also published on the Development Tracker. We have tried to be as open and as transparent as we are able to be. Clearly we are still in the process of making detailed decisions. We have informed the House and her Committee of as much detail as we are able to at this point. As we go through country by country and theme by theme, more details will be forthcoming.

I am intrigued to hear the comment that it is a challenge that we will return to the 0.7% as soon as possible, because the Minister realises, like everybody else in this House, that the rest of the world is not standing still. Others are filling the gaps that we leave, and votes in the United Nations and different support elements are going according to those power dynamics.

Can the Minister assure me that the decisions being taken will be in keeping with the other decisions that the Foreign Office is taking in reinforcing our bilateral interests, defending British people abroad and making sure that things such as covid do not have pools of disease around the world in which they can develop further? Of course, aid spending is not actually about foreigners; it is about us and supporting the world we live in and making sure we are able to communicate, to travel and to operate around the world. Will he assure me that that in that integration, although we are committed legally to multilaterals we will not forget the bilateral commitments we have made, which are so much more easily dropped?

My hon. Friend makes an incredibly important point. The UK is proud of the role it plays in multilateral forums around the world, and we are a leading player in many of them, but we are very conscious that we have incredibly important long-standing bilateral relationships around the world. I am very proud of the fact that we have maintained not only our commitments to multilaterals, but, through ODA and our diplomatic channels, our very strong set of bilateral relationships. He is right to highlight that both matter. Both are incredibly important to our partners around the world, and also, as he says, to the interests of people here in the UK.