Official Development Assistance

Baroness Sheehan Excerpts

Wednesday 2nd December 2020 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I would like to mention the noble Baroness, Lady Sugg, to start with. Like her, I feel immensely proud that the United Kingdom has been a development superpower and contributed so much to the world. Our support and leadership on development has saved and changed millions of lives. Last week the Minister told this House that the development priorities would remain the same, but a cut from 0.7% to 0.5% would represent a 30% reduction in funding. NGOs have estimated that, if applied across aid spending in areas previously managed by DfID, could mean that each year 5.6 million fewer children will be immunised and 105,000 lives will not be saved; 940,000 fewer children will be supported to gain a decent education; 7.6 million fewer women and girls will be reached with modern methods of family planning; 2 million fewer people will be reached with humanitarian assistance; 3.8 million fewer people will be supported to access clean water and better sanitation; and 16.5 million fewer women and children will be reached with nutrition programming.

I am also proud of the UK’s contribution to the global efforts to tackle Covid-19, particularly on vaccine development through Gavi and the breakthrough at Oxford, but does the Minister agree that these efforts will be hampered without strong health systems to deliver and administer vaccines, and that UK aid is critical to this?

As the noble Baroness, Lady Sugg, said, our ODA spend in tackling global issues, such as the pandemic, climate change and conflict, has been firmly in our national interest. She emphasised that cutting UK aid risks undermining efforts to promote a global Britain and will diminish our power to influence other nations to do what is right.

Is the noble Lord familiar with the words of General James Mattis, who said that if development funding gets cut,

“then I need to buy more ammunition”?

Does he share my concern that the effect of this cut in aid spending on instability will be to reduce the impact of the Government’s announced increase in defence spending? It will make it harder for us to pursue our national interest and to create a safer, healthier, fairer and better world for us all.

We know that we need a dramatic acceleration in the pace and scale of global climate action. As we approach 2021, when the UK will host both the G7 and COP 26, the UK has an opportunity to lead the response to the Covid pandemic and the climate crisis. This cut reduces the funds available for both these efforts and shows that the UK is stepping back when its support is needed most. For the climate conference to be a success, we must harness the political will of other countries. As hosts, it falls to the United Kingdom to lead by example, not to withdraw,

Does the Minister agree with President-elect Joe Biden that effective foreign policy relies

“not only on the example of our power, but on the power of our example”?

The example that these cuts set is of stepping back when, in the midst of this global pandemic, we should be stepping up.

Mark Lowcock, UN under-secretary-general for humanitarian affairs, has this week made clear that the impact of these cuts will not only affect the world’s most vulnerable but damage the UK’s global reputation. Have the Government abandoned their plan for a global Britain? What plans do the Government have to legislate for this cut to aid spending, in the light of the responsibilities outlined in the international development Act 2015? When do they plan to bring a Bill forward, and do they intend to include a sunset clause to ensure a return to 0.7%—the agreed OECD global target?

The noble Baroness, Lady Sugg, understood that this decision is not a necessity but a political choice by this Government. I will work hard with her and with all like-minded Peers across this House to oppose this ill-conceived, short-sighted decision.

[Baroness Sheehan (LD) [V]]

My Lords, I thank the Minister for bringing this Statement to your Lordships’ House. In her resignation letter to the Prime Minister, the former FCDO Minister, the noble Baroness, Lady Sugg, called the cut to the aid budget “fundamentally wrong”. She could not in all integrity defend the betrayal of a manifesto commitment made less than a year ago. Her view is endorsed by many others in the Minister’s own party in both Houses. No fewer than five former Prime Ministers—three from the Minister’s own party—and the most reverend Primate the Archbishop of Canterbury have said that this cut to international aid is morally wrong and harmful to Britain’s standing on the international stage. Not so long ago—in July and again in September—the Secretary of State, Dominic Raab, agreed.

To tie the cuts in the aid budget to the £4 billion increase in the defence budget is to rub salt into the wound. The Secretary of State would do well to heed the words of the noble Lord, Lord Dannatt, in your Lordships’ House last week. He said that the UK’s influence comes,

“largely through the integration of our hard power ... with our soft power”,

and that reducing the international development budget will significantly

“reduce the impact of so-called global Britain”.—[Official Report, 25/11/20; col. 250.]

In his Statement, the Secretary of State says that the cut to the aid budget nevertheless means that Britain’s aid spend remains at No. 2 among the G20. This misses the point. The outcry is because the Government are reneging on an unequivocal manifesto commitment and cutting aid over and above the fall in GNI at a moment unprecedented in global history. Future generations will rightly be appalled. It is akin to kicking someone when they are down. The British people have a strong sense of fair play. It is wrong to suggest, as I have seen in the press, that public opinion is on the side of these cuts. There is no evidence to support this assertion.

The 0.7% of GNI aid target, enshrined in law, is a proud Liberal Democrat achievement. It was spearheaded in the other place by the Private Member’s Bill from my right honourable friend Michael Moore. In your Lordships’ House, it was ably led by my noble friend Lord Purvis of Tweed, supported by my noble friend Lady Northover—then a DfID Minister in the coalition Government. Do the Government intend to change that law to reduce the aid target to 0.5%? If so, do they intend to use a Finance Bill as the vehicle for it?

Can the Minister state categorically that the 0.7% will be met this year? I regret that I need to ask this, but doubt remains. Will any shortfall caused by the overenthusiastic £2.9 billion cut announced in July be managed in a way that alleviates poverty and offers taxpayers value for money?

The Secretary of State does not mention scrutiny either in this Statement or in his letter to the noble Baroness, Lady Anelay, chair of the International Relations and Defence Committee. Can the Minister assure your Lordships’ House that monitoring and assessment of the effectiveness and value for money of ODA spend will not be the preserve of internal FCDO processes, but rather subject to independent, open and transparent scrutiny, including by parliamentarians?

What assessment have the Government made of how many UK international NGOs will go under next year as a consequence of the economic situation and of this cut? How many jobs will be lost in the UK? Does the Minister agree that these NGOs, particularly the small ones, have the trust of local community leaders and so have been able to go that vital last mile to deliver essential healthcare, nutrition and—crucially today—vaccines? Surely he accepts that the COVAX initiative will fail unless we can get supplies to where they are needed. We must have robust health systems on the ground to vaccinate people. I fear that this Statement shows that joined-up thinking is not currently a strength of the new FCDO.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, first, I thank the noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan, for their comments. I also thank them for making time last week, in calls that I and colleagues made, to discuss their obvious concerns about this cut, some of which they have articulated today.

I say at the outset in responding to both the noble Lord and the noble Baroness that, as my right honourable friend the Foreign Secretary mentioned specifically in his Statement, the decision was taken given the effects of the global pandemic on the economy and, as a result, the public finances, but it was taken with deep regret. It was felt that at the moment we cannot meet our target of spending 0.7% of GNI on ODA next year. The Statement was very up front, setting out the Government’s intent. As my right honourable friend the Foreign Secretary made clear in the Statement, it is our intention to return to that target as soon as the fiscal situation and the challenges permit. As I am sure the noble Lord and the noble Baroness acknowledge, those challenges are immense.

They both mentioned the manifesto commitment. Like many in your Lordships’ House and in the other place, and like many people across the country, we are proud that the Conservative Government enshrined the 0.7% target in law. Equally, the commitment in the manifesto at the time of the election did not for a moment predict—I do not think that anyone could have done so—the challenge not just to the UK but to the world of a health pandemic, coupled with the challenges to the economy that we face.

I shall pick up, first, on some of the specific points made by the noble Lord, Lord Collins. Rightly, he talked about the impact on aid. I do not deny that if you have a reduced pot of money, you will spend less on many of the important causes that we are currently engaged in around the world. I have seen for myself the importance and strength of those contributions. Our development spend brings about stability in countries, ensures that peace agreements are sustained and, importantly, empowers communities around the world.

The noble Baroness, Lady Sheehan, mentioned the importance of transparency. I do not agree with her on that. As someone who started his life in the Foreign Office as a Minister of State, was then a double-hatted Minister across both departments and is now a Minister at the FCDO, I have seen in my portfolio, and have direct experience of, the benefits of bringing together the important tools of diplomacy and development. In ensuring that decisions are expedited, we can make more efficient decisions, and the focus of those decisions can more readily be seen in the different parts of the world with most need.

In particular, I emphasise to the noble Baroness and the noble Lord that we remain absolutely committed to helping the world’s poorest. The measures that the Government have announced will ensure that every penny that we spend goes as far as possible towards sustaining our position as a world-leading development power, notwithstanding the cut that has been announced. The noble Baroness acknowledged where we stand.

I have always felt that the importance of any spend lies in its effective delivery on the ground. We stand with pride in comparison with many of our G20 and G7 partners, and it is important to recognise that we have seen some real benefits from our spend over many years. In particular, we will continue to spend over £10 billion on many of the key priorities which I know are close to the hearts of the noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan.

The strategic framework on ODA spend that my right honourable friend the Foreign Secretary is setting up—the double lock, which he announced with my right honourable friend the Chancellor—will ensure that the money spent is targeted on achieving many of the key goals highlighted by the noble Lord and the noble Baroness, including being at the forefront of meeting the challenge of the Covid pandemic. In that regard, I am proud that when my right honourable friend the Prime Minister returned to work following his own challenge from Covid, one of the first events in which he participated and led on was the Gavi summit. That raised over $8 billion—far in excess of the estimate.

Equally, the Gavi summit ensured that the vaccines and the support that they will give to many vulnerable communities, including those that I often see on my own patch—I give the specific example of polio eradication in places such as Afghanistan and Pakistan—are sustained at a time of great challenge for people across the world. Specifically on the Covid-19 pandemic, we have also been at the forefront of the COVAX Facility. I believe we all welcomed the news this morning about the further progress that has been made on developing vaccines.

I also assure the noble Baroness and the noble Lord that, as these vaccines come on line, including the important Oxford-AstraZeneca one, we are committed to ensuring a scaling up of vaccine production. Indeed, the FCDO has been instrumental in facilitating the agreement reached between AstraZeneca and the Serum Institute of India for that very purpose—to scale up production of a vaccine that, through the COVAX Facility, as well as through direct distribution, will allow vulnerable communities to be reached as quickly as possible.

In addition, the noble Lord, rightly raised our chairmanship of the G7 and the important leadership that we are showing as president-elect of COP 26 in Glasgow next year. I have a personal interest in this, in that I was the one who stood up at the UN and declared the £11.6 billion of climate financing. We will stand by that over the five-year period. It is important that we show leadership on these issues.

We remain very committed to the SDGs as the basis of our aid. There are many challenges, but arguably the biggest two international challenges in the area of development are the Covid-19 pandemic and facing the climate emergency. The United Kingdom continues not just to lead the narrative but to provide support through direct financing for both initiatives, to ensure that the most vulnerable communities and developing states benefit from our continuing support.

The noble Baroness mentioned the 0.7% target. As I have mentioned to her previously, and as I believe I said in responding to a Question last week, our spend this year will meet the target of 0.7% of GNI. She also raised the issue of scrutiny of ODA spend. The fact that I appear before your Lordships’ House today, as do colleagues in the other place, and the fact that we continue to have discussions and debates about this, shows that scrutiny takes place. I fully acknowledge and respect that. During my discussions last week, I talked directly to the commissioner of ICAI, not only to reassure her about our commitment to our development programmes but to gain a sense from her of what this means for the independent assessments that ICAI is able to make. As noble Lords will be aware, the Government have committed to ensuring that ICAI retains its role in making sure that our development spend is appropriately scrutinised.

Finally, I come to the important point that the noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan, raised about the importance of legislation. Again, I fully understand why that was mentioned, and it was raised also by noble Lords in other discussions. At this juncture, I acknowledge not only what the noble Lord and the noble Baroness said but the important work done by my noble friend—not just my noble friend but my very good friend—and colleague Lady Sugg in the development sphere. She will be missed at the FCDO. It is often said in the context of your Lordships’ House that it is much more welcome to have two hands on the pump rather than just one. I will personally miss her insights, experience and friendship, but I respect the decision that she took. Equally, I acknowledge the work of the noble Lord, Lord Purvis, in enshrining in law the 0.7% target.

It is right that noble Lords ask questions about the Government’s recognition of their statutory obligations. As I said only last week, we are cognisant of our duties to Parliament. Under the 2015 Act, the Secretary of State is under an ongoing legal duty to ensure that that 0.7% target is met. However, as has been acknowledged by noble Lords, the framework of the Act envisages that 0.7% may not be met in certain circumstances, including by reference to economic and fiscal circumstances.

On that basis, it is permissible to depart from the duty where the fiscal and economic circumstances justify doing so, reporting to Parliament under the Act. The noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan, asked me specifically about this issue. I assure noble Lords that we are considering legislation in the context of the projected long-term fiscal circumstances and the need to plan over successive years. That kind of long-term planning is not easy to square with Parliament’s intention as set out in the framework of the Act, and therefore I believe it is right in the context of that planning to ensure that we engage further with Parliament by bringing forward legislation.

The noble Lord and noble Baroness asked me specifically about timing. All I can say is that we intend to bring forward legislation in due course because, at the current time, it is difficult to predict the end date and this 0.5% figure moving back to 0.7% in light of the fiscal circumstances. It is right that we look carefully at that. As I said, we are considering the issue and will bring forward legislation in due course. As the noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan, know—and I look forward to hearing from other noble Lords on this issue—I understand the strength not just of the sentiment but of the principle behind 0.7% and its value in establishing the UK as both a respected partner and a development power in the world.

Regarding the merger and the bringing together of the Foreign, Commonwealth and Development Office, the noble Baroness talked about defence spend. Earlier today we had a Question on the importance of women, peace and security. That is why the integrated review, on which further announcements will be made earlier in the new year, brings together all the key strands of our diplomacy and defence to ensure that the UK has been, is and will continue to strengthen its position as global Britain on the world stage.