(5 years, 6 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the quality of the work carried out by the Independent Commission for Aid Impact in the scrutiny of (1) the effectiveness, and (2) the value for money, of United Kingdom aid.
My Lords, the Government highly value the Independent Commission for Aid Impact’s scrutiny of UK aid and have assessed its quality in two reviews since its establishment in 2011. The last tailored review in 2017 found that ICAI’s work continued to be both necessary and important. Since its inception, the commission has contributed to improving the impact and value for money of UK aid.
My Lords, I thank the Minister for her reply. The retention of ICAI, at least in the short term, is welcome. Inevitably, however, the merger of two departments will see much jockeying for ideas. Therefore, first, does the Minister accept that it is important that ICAI’s remit is not curtailed but, instead, bolstered to ensure that transparent scrutiny is maintained and that effective and accountable aid will be the hallmark of the new FCDO? Secondly, can she tell us to whom ICAI will report?
My Lords, we are committed to more effective and accountable aid spending under the new Foreign, Commonwealth and Development Office, and of course that includes transparency and external scrutiny. We will reinforce that external scrutiny by not just maintaining ICAI but strengthening its focus on the impact of our aid and the value that it adds to our policy agenda.
My Lords, does the Minister accept that it is very disappointing that the Independent Commission for Aid Impact rated the UK’s progress on international climate finance as inadequate? How do the Government intend to rectify this, given the urgency of much more progress before the UK hosts COP 26 next year?
My Lords, we are committed to increasing and improving our work on climate. We are doubling our funding to the International Climate Fund and, as the noble Baroness says, we are hosting COP. We are also absolutely committed to making sure that that funding is spent effectively.
My Lords, I welcome the Government’s decision on ICAI. I worked with Andrew Mitchell on its establishment and the set-up agreed then has proved successful. ICAI is subject to confirmatory hearings by the International Development Committee and, through the committee, reports its programme and findings. This needs to be maintained if the UK’s global reputation is not to be risked. Therefore, I urge the Government to support a dedicated Commons Select Committee to monitor ICAI and UK aid, and to maintain the credibility of the great work that has been done to date.
I am grateful to the noble Lord for welcoming the commitment to keep ICAI. On the Select Committee point, the Government agree that Parliament has an important role in scrutinising UK aid spending, and Select Committees are of course fundamental in scrutinising the Government’s spending and policies. We acknowledge that, as a consequence of the merger, the House of Commons might have to reconfigure the Select Committee structure, but the Government’s view is that normally the committee structure mirrors the departmental structure.
My Lords, the independent commission clearly does a good and much-needed job in evaluating aid flows, but does my noble friend agree that it has been particularly useful in bringing home the fact that aid alone is not an effective driver of development or indeed of poverty reduction, and that issues such as counterterrorism, security, human rights breaches, private investment conditions and, obviously, good governance under the law are just as much part of the modern development package? Does she further agree that the proposed merger between our aid and foreign policy departments, about which I think we are going to hear a Statement later today, offers a highly effective and rational way of bringing these essential modern-day strands of development closer together?
My noble friend is right that my noble friend Lord Ahmad will be repeating a Statement later today. The advantages that my noble friend highlights are exactly the reason why the Prime Minister has merged DfID and the FCO to become the new FCDO. My noble friend is right that aid alone is not going to resolve many of the world’s problems. We need to make sure that we are taking a joined-up approach and bringing the strands of foreign policy, development and trade together in order to tackle these huge global challenges.
My Lords, the Government have confirmed that the Independent Commission for Aid Impact will continue to scrutinise all aid spending across all government departments. However, I am concerned that with the forthcoming review of its remit, and in the light of reports that the aid budget will be reduced, how will the commission ensure its independence and maintain its primary purpose?
My Lords, the review will consider how ICAI can improve the impact of aid spending across government and challenge the big decisions around aid spending so that it can provide robust and evidence-based recommendations. It will continue to follow overseas development assistance across all departments. I take this opportunity to reiterate the point that I made yesterday: the Government are committed to spending 0.7% of our gross national income on international development.
I call the noble Lord, Lord Collins of Highbury.
My Lords, the Minister rightly argues that transparency and accountability are vital. The Government have said that it will be up to the Commons to decide whether there is an International Development Select Committee, which precedes the creation of a separate department. If a Motion is tabled to abolish that, will the Government be giving those on the government payroll and on the Back Benches a free vote, or will they be advised which way to vote?
My Lords, we will reflect carefully on the recommendations of the IDC and the Liaison Committee before bringing forward Motions to change existing the committee structures for the House to agree later this year.
Is the noble Lord, Lord Collins of Highbury, in a position to participate? If not, we will move on to the noble Baroness, Lady Falkner of Margravine.
My Lords, I welcome the review. It is extremely timely, given the merger of the two departments. However, can the Minister confirm that the resources of ICAI will be strengthened? Surely three commissioners and a very small secretariat are not sufficient to provide the resources that the budget demands to provide assurance to Parliament and the public.
My Lords, that is certainly one of the issues that the review will look at. The terms of reference will be published on GOV.UK in due course. We are keeping ICAI because we welcome independent scrutiny, and we are committed to ensuring that it continues to give us robust and constructive criticism.
I call the noble Baroness, Lady Cox. No? I call the noble Baroness, Lady Goudie.
My Lords, I welcome the review. I very much hope that as part of it, unlike what has happened previously, the gender and disability lenses are looked at along with culture, and that there is respect for all countries in the projects that we are working on. I feel that this is very important. Further, I know this is not quite right, but there is spending in Scotland and Wales on development, and maybe we could include this in some way as an exception.
My Lords, ICAI’s reports have led to much substantive action in key areas, including the use of data and the preparation of results, as well as helping us to mainstream our policies on gender, making sure that all our policies are inclusive and that we reach the poorest and leave no one behind. We will encourage ICAI to continue to assist us on those measures. I also take the opportunity to reiterate the point that advancing gender equality and women’s rights are of course a core part of the new Government’s mission.
Lord Collins of Highbury? The noble Baroness, Lady Cox, is with us.
Is the Minister aware that the recent report by the All-Party Parliamentary Group for International Freedom of Religion or Belief, which I co-chair, highlights urgent concerns about British aid to Nigeria, especially the refusal of aid to the Middle Belt states, which are among the areas worst affected by Islamist killings, abductions, atrocities and the displacement of thousands of civilians? Will the Minister ensure a more rigorous and effective use of British aid, including food, medical care and shelter, for Nigeria’s Middle Belt states?
My Lords, I am of course aware of the report that the noble Baroness refers to, and we are looking at it very carefully. We all want to ensure that our aid is spent effectively and in a way that gives value for money but that it also really helps the people that it is designed to help. That is something that ICAI helps the department to do.
I make one last call for the noble Lord, Lord Collins of Highbury. If he is not responding, all supplementary questions have been asked and we will move to the next Question.
(5 years, 6 months ago)
Lords ChamberTo ask Her Majesty’s Government, further to the establishment of the Foreign, Commonwealth and Development Office, what plans they have to maintain the requirement to spend 0.7 per cent of Gross National Income on aid.
My Lords, the commitment to spending 0.7% of our national income on aid is a manifesto commitment and is enshrined in law. As the PM has made clear, the new Foreign, Commonwealth and Development Office will maximise the impact of our aid budget to help the world’s poorest, while making sure that we get the best value for money for the UK taxpayer.
My Lords, in an article in this week’s Sunday Times on the Chancellor’s possible tax rises was this line:
“Treasury officials are also examining ways of siphoning cash from the foreign aid budget.”
Given that £2.9 billion has already been cut from UK aid this year, going further would mean repealing legislation. From the same article was this quote:
“A source said: ‘Foreign aid is being looked at as well’.”
Quite simply, can the Minister say whether such media reports over the last few days are wishful thinking within elements of her party, or is it a precursor to yet another government U-turn, this time on a Conservative manifesto commitment?
My Lords, rather than focusing on unattributable media reports, I point the noble Baroness to No. 10’s confirmation yesterday that there is no change to the Government’s commitment to maintaining a 0.7% aid target. Also, the Foreign and Development Secretary today confirmed that we will continue to spend 0.7%. That is written into the law. The Prime Minister has said that we want aid capacity and development expertise; that is what we want to be the beating heart of the new department.
My Lords, I have two questions. When will the first accounts for the new joint department be signed off, as they must be, by the FCO permanent secretary, and published? Secondly, on 19 June, 191 NGOs, think tanks and charities, all working on humanitarian assistance—including of course the current Covid problem—wrote to the Prime Minister protesting about this new arrangement. The doctors wrote, similarly, a couple of days later. All made the point that DfID is one of the most successful and respected aid departments anywhere in the world, and is recognised as such by everywhere else in the world. Has the Prime Minister answered those letters from the 191 NGOs and the doctors? They were written 10 weeks ago. If not, after almost 10 weeks, when will he reply?
My Lords, departmental accounts will be published in the usual way. I reassure the noble Baroness and, indeed, the NGOs to which she referred, that of course we are listening very closely to what they say to ensure that the new department is greater than the sum of its parts, and what we want it to be. We aim to use all the tools of our influence and expertise to continue our work and development. We are a world leader in international development, as the noble Baroness says, helping to end extreme poverty in developing countries around the world. We are absolutely committed to putting UK aid at the heart of what we do in the new department. We will continue with our 0.7% and will ensure that we continue the good work that we have seen from DfID in the new FCDO.
Development is global and long term, which is usually different from the aims of other government departments. Given the headlines about raiding the development budget, including from the Treasury, exactly how will her department guard against this?
My Lords, as I hope I have made clear, we will continue our commitment to 0.7% in the new department, as was said in the Conservative Party manifesto on which we were elected, and we will proudly maintain that commitment. We must ensure that both our diplomacy and development work continues, as it has done in the two separate departments, within the new department. In our new department, we aim to pursue our national interests and project the UK as a force for good in the world, which includes safeguarding UK security, defending our values, reducing poverty and tackling the huge global challenges that we face.
My Lords, our overseas aid programme is under a triple threat: the questioning of the commitment to 0.7%; the reduced value of the 0.7% because of the post-Covid recession; and the subverting of aid spending into quite different areas, such as defence. Does the Minister accept that an effective aid programme is, in fact, firmly in the UK’s national interest and enhances our reputation globally? Will she reassure me that spending in areas where we are acknowledged world leaders, such as malaria—I declare my interest—which was also specifically mentioned in the Conservative Party manifesto, will be safeguarded going forward?
I completely agree with the noble Baroness that our work in international development is firmly in the national interest and absolutely enhances our global reputation abroad. We have been a world leader in many things, including malaria. We need to focus, rightly, on the Covid-19 response, but we must not forget or reverse the significant gains that have been made over the years. We have many proud achievements on malaria, and the UK will continue to lead the way on eradicating malaria as part of our work on ending preventable deaths.
I welcome the Minister’s comprehensive replies and have a simple question for her. On the back of my views that the merger will add greatly to UK influence in global leadership, given that public health is central to all our thinking at the moment internationally, can the Minister reassure me that, from now on, we will use our contribution to the World Health Organization, where we are in fact the largest and most powerful contributor, to the greatest possible extent? That means perhaps not just contributing, but ensuring that the WHO has reorganisation in the centre, or whatever is needed, because it has lagged a little bit, which is why we have lost the United States. Will the Minister reassure me that she will do everything she can to make Britain more powerful in the World Health Organization dimension?
As my noble friend says, we are a leading donor to the WHO. We have already pledged £75 million to help it to lead international efforts to stop the spread of the virus and then the pandemic. The UK has long been an advocate for reform in the WHO. We want to see the WHO continue to learn lessons on how to improve its response to global health emergencies. The new department will help us in this aim, bringing together our diplomatic engagement with the WHO and other bilateral donors, and also our development funding, for the first time.
My Lords, I have personally seen through the Anglican Communion’s worldwide partnerships the positive impact that the UK’s overseas aid has made to alleviating poverty. I share the concerns of other Peers about the reports of the Government’s intent to overturn the legal commitment to spend 0.7% of gross national income on aid. At the risk of tedium, I hope that the Minister will continue to give this House assurances that the Government have no such plans, which would reduce the UK’s impact under the UN sustainable development goals.
I thank the right reverend Prelate for her question. Like her, I have seen at first hand the incredible work that church and faith groups do around the world. I assure her that we will continue to be guided by our responsibilities under the International Development Act, which of course includes a commitment to poverty reduction.
My Lords, as we have heard, there has already been a substantial reduction in real aid spending due to the contraction of our own economy. Where is the strategy? Which country programmes have been identified for closure and cuts? Does the Minister agree with the Prime Minister that we should be diverting aid from partners in countries such as Zambia and Tanzania? If so, why?
As the noble Lord said, given the expected fall in gross national income this year, our commitments to aid spending have been reviewed across all departments. The strategy behind that was to ensure that there is continued support for the five priorities for overseas development assistance: the Bottom Billion support, poverty reduction, climate change, girls’ education and, of course, Covid-19. We want to ensure that Britain continues to play its role as a force for good in the world. That implementation is happening as we speak, and we are discussing that with suppliers. As usual, there will continue to be adjustments in year to individual departmental overspend to meet the 0.7% target, but we are absolutely focused on making sure that we continue to fund the priorities that I have outlined.
My Lords, is not the problem for the Minister that whatever she says in good faith is being undermined by persistent and detailed leaking, not least in today’s edition of the Times? The aid budget is a jewel in a very jaded foreign policy. Why should it be put at risk?
My Lords, I agree with the noble Lord that it should not be put at risk. It is not at risk. I point to the comments from No. 10, from the Foreign Secretary today and, indeed, from the Prime Minister when he made his announcement to Parliament on the merger. We should be incredibly proud of the changes that 0.7% has made and continues to make in people’s lives around the world, from girls’ education to eradicating wild polio in Africa. We continue to be proud of that and to be absolutely committed to carrying on the good work of 0.7% in the new FCDO.
My Lords, nothing, I suspect, could prick our collective conscience a moment more than the terrible suffering in Yemen. Can the Minister tell me how we are managing to extend some sort of help to the agencies working in that area?
My Lords, we continue to be incredibly concerned about the situation in Yemen. In fact, we have an announcement today, given the impact of Covid-19 heightening the risk of famine in countries from Sudan through to Yemen. We are providing an extra £190 million of famine relief. At the same time, in order to leverage our diplomatic network and bring countries together, we have appointed a new envoy for famine relief and we will continue to ensure that we are giving the support to the people of Yemen that they need.
Can the Minister give us more assistance in developing public health training, because it is the lack of public health training in many of the countries concerned with Covid-19 that is putting them at even greater risk than they are already? Will she also discuss with the Foreign and Development Secretary the whole question of training officials from the two participating departments, perhaps with some help from those of us who have experienced working in both departments? That way we can show the diplomats exactly why foreign aid is so critical to what they do, and help the development specialists to understand the problems faced by the diplomats.
As my noble friend said, it is incredibly important that we think carefully about how we spend our 0.7% budget. Of course, Covid-19 has changed our perception of what we should be doing. I agree with her that we need to invest more in health training and health systems in the developing world to make sure that they are strong enough to cope with this pandemic and any others that might come in the future. I also agree with my noble friend about the importance of sharing the expertise from DfID and the FCO with the new department. There will, of course, be learnings for everybody, and I would very much like to take her up on her offer of help on that, because I know that she has many years of experience in this. I am sure that the new department would benefit from that.
My Lords, I welcome the Government’s reassurance on the matter of 0.7% and I should mention my entry in the register of interests. However, I do not think that the announcement at the end of July of the cuts in the budget as a result of the contraction in the economy was a good start for transparency in the new department. To announce £2.9 billion of cuts without any detail or criteria was a significant problem, so I would like the Minister to give us some assurance, first, that there will be a detailed announcement about these cuts and, secondly, that the criteria used to make the cuts will be properly announced to Parliament in due course.
My Lords, the Foreign Secretary explained in letters to the Select Committees and placed in the Libraries of both Houses the priorities on how these decisions were made. We remain firmly committed to transparency in our aid spending. I hope noble Lords will welcome the announcement that we will continue in the Independent Commission for Aid Impact.
On the prioritisation decisions, at a minimum our DevTracker website is being updated at the end of every month. If, by the end of August, amended programmes and projects have been uploaded on to that, provisional international development statistics will be published in the usual way. Then, of course, the final international development statistics in autumn next year will include country-level data.
We do not know what the current GNI figure is, so this is an iterative process as we go, but we are absolutely determined to ensure that we are using the aid money that we have to deal with the many issues that the world faces.
My Lords, the time allowed for this Private Notice Question has now elapsed.