Foreign, Commonwealth and Development Office

Jim McMahon Excerpts

Wednesday 4th March 2026 Commons Chamber

[Jim McMahon (Oldham West, Chadderton and Royton) (Lab/Co-op)]

My hon. Friend makes a very important point about how we develop communities and individuals. Does she agree that co-operatives have an important role to play in economic development, as they not only create jobs but give people a stake in the future of those jobs?

[Sarah Champion]

I absolutely agree with my hon. Friend. The only way that I am aware of co-operatives starting is by groups of local people coming together. That is what FCDO and ODA money is particularly good at doing—supporting civil society. I mentioned holding Governments to account, but of course, the economic empowerment that comes from communities being involved in the development of their own countries is something that we have supported so well for decades. I really hope we are able to continue to do so.

One concern I have is about the money that will likely be spent on staff redundancies that would be much better spent on furthering British priorities overseas. Of course, there are also pressures on the wider network of institutions that further the UK’s interests overseas, such as the British Council and the BBC World Service. Those institutions play a really important role in projecting the UK’s soft power, and require stable and predictable funding. Although more funding has been provided in the supplementary estimates, this follows a long period of damaging uncertainty, which has really weakened our hand.

Inadequate transparency over aid spending has been a persistent theme for the past few years. I am proud of the work my Committee has done to shine a light on where aid cuts have fallen and the impact they have had. I am also extremely grateful to the excellent support provided in this task by my Committee staff and the House of Commons financial scrutiny unit, but we do not do this work alone; independent scrutiny bodies such as the Independent Commission for Aid Impact play a central role in maintaining transparency and accountability and in ensuring that Members have the information we need. I am deeply concerned that ICAI may be axed as part of these cuts, and I hope the Minister can reassure us that I am wrong about that.

This estimates debate sits within a broader shift in the UK’s aid strategy towards investment-led development, which is evident in nearly £0.5 billion funding for British International Investment this year. BII’s model is built on long-term investments rather than rapid humanitarian response, but that raises questions about the breadth of our development portfolio, and whether we are still there to help the poorest of the poor if we do not have the other support that underpins BII.