Official Development Assistance Reductions

Desmond Swayne Excerpts

Tuesday 4th November 2025 Westminster Hall

[Edward Morello]

I agree 100% with the hon. Member. The more we work with our partners, the more we can deliver. We are living in an interconnected society; there is no way we can do this alone. We must work with others, and we must show leadership in that space.

If aid spending remained at 0.5%, it would have reached £15.4 billion by 2027. Instead, it will stand at £9.2 billion, the lowest in real terms since 2012. When we retreat, Russia and China advance; when we stay silent, violence speaks for us. There can be no security without stability, and no stability without development. Development is not an add-on to security and foreign policy, but what that policy is built on.

I therefore urge the Government to reconsider the planned reductions ahead of the Budget, and to bring forward sustainable, long-term plans for funding both our defence and our diplomacy, rather than setting them in competition. I urge them to recognise that global leadership cannot be built on cuts and withdrawals, but on conviction and compassion. The world we are shaping today, through the choices we make on aid, diplomacy and climate will determine whether future generations—our children and grandchildren—inherit a planet of opportunity for all.

We must stand up for liberal values, for compassion and for the rules-based international order. Britain has always stood tall on the world stage. Our leadership has mattered. It must matter again.

[Sir Desmond Swayne (in the Chair)]

I call Sarah Champion. I suggest five minutes.

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[Several hon. Members rose—]

[Sir Desmond Swayne (in the Chair)]

Order. I suggest four minutes from now on.

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[Several hon. Members rose—]

[Sir Desmond Swayne (in the Chair)]

Order. I am imposing a formal four-minute limit.

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[Noah Law (St Austell and Newquay) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Desmond.

Official development assistance is changing. Just two weeks ago in Nigeria, one of the UK’s largest development partners, my colleagues and I from the International Development Committee had a glimpse of the future. Although the FCDO runs dozens of centrally managed programmes in the country, what stood out was not just the scale of the UK’s presence, but the way that we worked hand in glove with state Governments and public institutions to build the capacity that underpins long-term development. Whether that was in technical assistance to the revenue service or tax administration, support for reforming the public health system or advice on the macroeconomic reforms that Nigeria is beginning to implement, the emphasis was unmistakeable: partnership not paternalism.

That is a mature partnership that points the way to the future of international development. As painful as it is for a proponent of international development to say this, when the Government cut aid earlier this year, the writing was on the wall. The system must evolve from trade, not aid, and to transformation rather than transactions.

In that evolution, the UK possesses an extraordinary toolkit. We remain a leader in technical co-operation and capacity building, we are a pioneer in development finance and, perhaps most importantly, we sit at the centre of the global financial architecture. Nearly half of sovereign debt worldwide is governed by English law. That fact alone gives the City of London a moral and practical responsibility. If we want to see fairer, faster and more transparent debt restructuring and prevent another lost decade for low-income countries, the UK is uniquely placed to lead. Global debt reform will not happen in New York or Beijing unless it also happens in London.

In British International Investment—I declare an interest as a former employee—we have a leader among European development finance institutions, one that understands that development finance is not just about providing capital but about building markets. BII’s mission is to identify the bridges that must be built to get economic activity off the ground, create jobs and lift people out of poverty, while delivering a fair return, even when that return is concessional to the British taxpayer. That is smart, modern development policy, which will strengthen Africa’s hand.

Nowhere is the shift from aid to investment more necessary than in northern Nigeria. While parts of the south of Nigeria power on, the north is facing a humanitarian crisis, deep insecurity and environmental stress. Yes, there is an urgent need for aid to combat famine, strengthen healthcare systems and stabilise communities, but we must also confront the structural causes. A major driver of that instability is economic exclusion. Across the Sahel and the north of Nigeria, young people are being pushed off their land by drought, flooding and declining soil resilience. Many of those who end up in the orbit of Boko Haram or bandit groups are not idealogues; they are victims of climate and market failure.

Those problems are not insurmountable, but aid without investment is not the answer to that market failure. If we can give rural farmers the means to invest in sustainable crops and farming practices, agriculture can be a source of peace, dignity and security. The World Bank’s forthcoming Nigeria agricultural value chains growth project—on which I hope the Minister will comment—is now at concept stage, but it aims to do just that, and to mobilise more than $500 million to foster the kind of growth that I have described. I also commend the work that BII is doing with its investee Babban Gona in that realm.

[Sir Desmond Swayne (in the Chair)]

Order.

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[Seema Malhotra]

I am sorry, but due to time I will be wrapping up. At the weekend, the Foreign Secretary announced a further £5 million of support to the crisis in el-Fasher. While we have seen cuts, we have avoided disproportionate negative impacts on women and girls and people living with disabilities in this year’s ODA allocations, as confirmed by the equalities impact assessment that we published. We will continue to strengthen actions to help mitigate some of the negative impacts on equalities, including by putting women and girls at the heart of everything we do.

I will make a final point in relation to the ODA budget for supporting refugees in the UK. The Government are focused on reducing asylum costs and ending the use of migrant hotels by the end of the Parliament, and we have already made progress on that. The UK remains committed to international development. We are working with our partners to shape the next stage of global development, and at the same time, we are strengthening the UK’s safety, security and prosperity—and global safety, security and prosperity—which is essential for delivering all the missions of this Government.

[Sir Desmond Swayne (in the Chair)]

Edward Morello, you have less than a minute.