International Development Debate
Full Debate: Read Full DebateJudith Cummins
Main Page: Judith Cummins (Labour - Bradford South)Department Debates - View all Judith Cummins's debates with the Foreign, Commonwealth & Development Office
(1 day, 17 hours ago)
Commons ChamberAlongside the written ministerial statement published this morning, I want to update the House on the Government’s revised approach to international development and official development assistance allocations. National security is the first duty of Government, and this country faces the most serious security situation for a generation. For too long under previous Governments our defence investment was cut back, so last year this Government took the necessary decision to deliver the biggest increase in defence spending since the cold war—the importance of that a decision has been demonstrated again in recent weeks as UK jets fly defensive operations in the middle east while our carrier strike group has been preparing to head to the High North.
In order to fund the additional defence spending, we had to take the hugely difficult decision to reduce our development budget over the next few years, moving to the equivalent of 0.3% of gross national income by 2027. That was set out by the Treasury in the spending review last year. Allies such as Germany, France and Sweden have made similar choices. This, for us, is not an ideological step; it is a difficult choice in the face of international threats. The Prime Minister and the Chancellor have confirmed that it is our intention to return to 0.7% when the fiscal circumstances allow.
Our country has a strong, long history of leading on international development across the world. Let me be clear that our commitment to international development remains a central part of our foreign policy and a reflection of both our values and our national interest. It is a fundamental part of our moral purpose to stand up against global disease and hunger and to support those trapped in crises caused by conflict or climate change.
We know that preventing conflict, instability and crisis, displacement and migration, as well as supporting security, economic development, growth and trade, and building global partnerships are all the right things to do. They are also directly in the UK national interest, because as we have seen all too clearly in recent years, instability and crises across the world have a direct impact on us here at home. We have looked hard at what we prioritise and how we work, using the challenge of a reduced budget to find solutions that increase impact, focusing on what secures best value for money for taxpayers while reflecting UK values and the UK national interest, and what will seize new opportunities to bring real change to people’s lives.
First, we will prioritise support for countries and communities facing the worst humanitarian need—those affected by wars and crises. We are committing £1.4 billion a year to tackle human suffering in some of the worst humanitarian crises. Seventy per cent of all geographic support will be allocated to the most fragile and conflict-affected states. That includes fully protecting funds for Ukraine, where people were left in freezing conditions this winter; for Palestine, where civilians continue to suffer immensely in Gaza; and for Sudan, where we see the worst humanitarian crisis of the 21st century. In the light of the current crisis in the middle east, this week I have taken the decision to add Lebanon to the countries whose funding will be fully protected next year.
That does mean that direct bilateral aid funding for other countries will be reduced. We have taken the decision to withdraw from traditional bilateral funding for G20 countries. Countries such as Yemen, Somalia and Afghanistan will remain humanitarian priorities. They will see direct grant reductions, although we will continue to support multilateral programmes that operate in those countries. Countries such as Pakistan and Mozambique will remain development priorities, but their direct grant funding will be significantly reduced. Instead, we will run partnerships for investment that include growth funding through British International Investment and investment to tackle climate change, or lever in direct UK expertise to help them improve capabilities and raise funds directly themselves.
Secondly, we will focus on areas that maximise impact, transform lives and build stability—creating jobs and economic opportunities is the path out of poverty—as well as saving lives and improving health through backing proven global partnerships with which the UK has strong engagement and expertise. For example, we have our partnership with Gavi, the Vaccine Alliance, where we will be investing over £1.2 billion, which will save the lives of millions of children around the world. We are investing £800 million in the Global Fund, which is expected to save up to 1.3 million lives and avert up to 22 million new cases of HIV, TB and malaria. We are investing in climate action that protects people and prevents future crises. Over the next three years, the UK will aim to spend around £6 billion of ODA as international climate finance, covering mitigation, adaptation and a focus on nature. Using different instruments and levers, we will aim to deliver an additional £6.7 billion of UK-backed climate and nature investments and to mobilise billions more in private finance. That includes measures to help countries to recover when disasters hit. For example, risk insurance in Jamaica enabled rapid payouts following Hurricane Melissa.
Thirdly, we will support women and girls, and we will invest in line with our values, even where other countries have changed their development approach. I have taken the decision to make support for women and girls not just a priority for development, but a central theme across the work of the Foreign, Commonwealth and Development Office. That means work to prevent violence, to champion women’s political and economic participation and to keep children learning even during conflict. We will continue support for things such as help for the survivors of horrific rape and sexual abuse and the kind of dedicated funding I announced recently in Sudan for women who have endured the most appalling and traumatic experiences. At least 90% of our bilateral ODA programmes will have a focus on women and girls by 2030. In an age of disinformation, we will also increase our funding to the BBC World Service by £11 million extra a year.
Fourthly, we will support and help reform international institutions to unlock greater finance for development and the innovation that can go far beyond UK aid and traditional grants. That means backing the most efficient and effective bits of the multilateral system to multiply our investment, because multilateral development banks are the largest source of development and climate finance and can lend to partner countries on the most affordable terms. That includes the World Bank’s International Development Association, where each pound that we invest unlocks £4 of additional finance, and to which we have increased our contribution by 40%. We are also working to double the amount of money that multilateral development banks can provide, listening to partners and backing Africa’s institutions to raise far more money at scale.
Our £650 million contribution to the African Development Fund will allow it to leverage up to £1.6 billion in grants and concessional loans, including issuing bonds on the London stock exchange for the first time. We will use our shareholder role and our seat at the table to press for innovation and reform, increasing the voice and representation of low-income and vulnerable countries and pursuing debt relief too, because the global financial system needs to deliver a fairer deal for developing countries and their citizens. The UN must continue to play its indispensable role, but also be more efficient, effective and coherent, so we will refocus on core priorities in line with the UN80 reform initiative.
Fifthly, we are transforming how we work, responding to the clear need for partnership, not paternalism. My noble Friend Baroness Chapman, the International Development Minister, has set out a series of shifts in how we work. We will be an investor, not just a donor. Our partners want to attract finance, not be dependent on aid. Through British International Investment, our finance institution, we are driving growth and innovation and unlocking private capital. That is why I signed a joint agreement in Ethiopia earlier this year for energy transmission projects worth £300 million, enabled by a British International Investment company that delivers UK investment across Africa. That is the kind of partnership that also helps Ethiopians find work at home, rather than considering dangerous international migration overseas.
We are also making reforms to strengthen systems rather than providing services, so that countries can thrive better without aid. For example, our partners want to educate their children themselves, rather than having us try to do it for them, so we are helping to support teacher training and curriculum design. We are moving from providing grants to providing expertise, drawing on the best of British know-how and mobilising UK strengths from inside and outside Government, whether that is from world-class universities, specialists in the tech sector, the City of London, the Met Office or His Majesty’s Revenue and Customs. For example, tax expertise helped Ghana generate an additional £100 million in revenue to invest in education, health and priorities. Finally, we are backing local solutions rather than remote international approaches, because organisations locally know their populations best and are closer to those in need.
Allocating a reduced budget inevitably leads to hard choices and unavoidable trade-offs, so we are focusing aid on the people and places that need it most, and we will still be a major player. We expect to be the fifth-biggest funder in the world. We will still use international leadership, such as our 2027 G20 presidency, to shape the global agenda for development. We will continue to use other policies and levers so that lower income countries benefit from trade and growth. We will tackle flows of illicit finance and dirty money, which harm developing countries most and fuel crime on everyone’s streets.
This modernised approach to international development and our allocation of ODA reflect our values and our interests, because our driving force has been and continues to be working for a world free from extreme poverty on a liveable planet. We are clear that prosperity and stability in lower-income countries matters for outcomes here at home, whether that is the cost of living, the security of our borders, the resilience of our economy and upholding our UK values across the world. We are also clear that the UK’s sustained commitment to international development is about delivering both at home and abroad. I commend this statement to the House.
The right hon. Lady obviously has a set of questions, but it would have been better if she had also taken some responsibility for the situation we are in, because it was the Conservatives who hollowed out the investment in defence with a £12 billion cut after 2010, who failed to respond to the end of the post-cold war dividend, and who left our overall public finances in, frankly, a perilous state by the time we reached the 2024 election. That situation left us with difficult decisions and choices to make. We are having to reverse some of the cuts they made in defence and to keep increasing defence spending, and we are having to make difficult decisions to fund that.
The right hon. Lady asked a series of questions on particular areas, but I gently point out that she said nothing to explain what her approach would be under the Conservative party’s policy to reduce development spending to 0.1% of GNI—a two-thirds reduction in the funding we are setting out. There was no explanation of whether that funding would be cut from Sudan, vaccines or global health support.
I say to the House that we are honouring our commitments, such as those to the World Bank’s International Development Association programme. The ICAI will continue, and we are increasing funding for the British Council, but that will come from outside ODA funding. That will come from additional funding, because we recognise the hugely important role that the British Council plays across the world.
The new approach we are taking to support investment and to shift from donor to investor was encapsulated in the “new Approach to Africa”, published by my noble Friend Baroness Chapman before Christmas. That set out the equal partnership and respect that underpin the new framework for our approach to Africa, which has been strongly welcomed by African countries.
On Turkey, we are continuing to provide support for refugees, just as we are providing support that helps refugees in places like Chad, because we know that providing that support in region also prevents people from making dangerous journeys and the kind of migration that is exploited by criminal smuggler gangs. There are areas where we are reducing direct aid, and that obviously leads to difficult decisions, but we are working to increase investment in those areas through things like the World Bank and other programmes. That is the right thing to do to ensure that we can both support the defence investment we need and continue to champion international development.
Thank you, Madam Deputy Speaker. I hope that my voice will last—the Foreign Secretary might get off lightly.
This was meant to be a statement about the 40% cuts that the Government are bringing forward. Instead, the Foreign Secretary spoke at length about the policy and direction shifts that she is making, which I think are the right ones to make, but we have not discussed the policy announcements around the cuts. I have had an embargoed copy of the equality impact assessment, for which I am grateful. When that is in the public domain, we will have the information that would allow us to have an informed debate.
I fear that the Government’s decisions have been based on a false dichotomy. Defence has been pitched against international development, but ask any military person and they will say that the best line of prevention and first defence is our development money, because it keeps people safe and secure in their homes, keeps them prosperous and holds Governments to account. In the world we find ourselves in, I am fearful that taking away that first line of defence will have massive consequences.
I will give a couple of stats to illustrate where we are. There are 61 ongoing conflicts. Less than 12% of the global population lives under a liberal democracy—the lowest in 50 years—with 5.8 billion people living under autocratic rule. Over the next 15 years, 1.2 billion people will reach working age with only a projected 400 million jobs.
Development spend keeps people fed, safe and prosperous. Our aid cuts will reduce that. Girls in South Sudan will no longer have education, polio will surge, civil society is being abandoned and the poorest will not be fed. Rather than providing solutions, we will see the consequences of the UK stepping away from the international stage for our reputation and influence, and, as the former Home Secretary well knows, we will see people come to our shores to seek sanctuary and opportunity.
Can we also spare a thought for the staff in the FCDO who face 25% cuts right now, and specifically the country directors who are having to go to people they have spent years building relationships with to say that we are no longer standing by them financially?
I do not really have a question because I have not been given the information, but I say to the Foreign Secretary that these cuts do not aid our defence—they make the whole world more vulnerable. Can I please ask that as we go forward, she listens to the ICAI report about transparency, where we are prioritising money and its impact, rather than just chasing the bottom line?
I thank my hon. Friend for the points she has made and for being such a strong champion for international development and its wider purposes. I also thank her for the extensive work and scrutiny that her Committee does in this area.
My hon. Friend mentioned the interaction between development work and security across the world, and I agree with her that those issues are strongly linked. We have decided to prioritise some fragile and conflict-affected countries exactly because those development and security issues are so strongly interlinked. Our purpose is to better link the direct aid we provide with conflict and atrocity prevention.
We are linking those policy approaches in, for example, Sudan. We are fully protecting the funding for Sudan because of the scale of the humanitarian crisis, but we are linking that to much stronger policy interventions, including for the women and girls facing such crises, and the work to support a ceasefire. The honest truth is that, if we could achieve a ceasefire in Sudan, that would have more impact than any humanitarian aid funding we can provide because, frankly, the humanitarian funding too often cannot get in because of the conflict. We need to join up strongly those policies with aid support.
My hon. Friend also mentioned the equalities impact assessment, which is being published today. Our intention had been to publish it by this point, but I understand it is being uploaded at the moment. I will be giving evidence to her Committee, but I can tell her that we looked at earlier assessments and adapted our decision making on the basis of that analysis to ensure that we are, for example, doing more to support women and girls and taking account of equalities issues.
I agree with my hon. Friend that these issues are interlinked, which is why they must continue to be linked as part of our foreign policy. We have to both defend our security and support international development, because those things are fundamentally linked: this is about both our values and our national interest.
Monica Harding (Esher and Walton) (LD)
May I start by asking the Foreign Secretary why this extremely important statement on Britain’s commitments overseas is being announced on a Thursday, when most MPs are not here? Is it perhaps because the Government are ashamed of these cuts and want them to slip out unnoticed?
Something has gone badly wrong when a Labour Government cut the foreign aid Budget more deeply than Donald Trump or the last Conservative Government. This shameful moment is not only a moral catastrophe, but strategically illiterate. The cuts to the bilateral aid budget will be a direct and severe hit to Britain’s long-term interests, to our influence and our ability to shape events in regions critical to our national interest, and to growth in new markets, leaving a vacuum for Russia and China to fill.
The Foreign Secretary makes great play of defence, but when the world is on fire we need more work on prevention of conflict, not less. By cutting aid and development, she weakens our security and will therefore need more defence spend down the line. If she does not believe me, she may like to believe the defence chiefs who have said so, including Lord Richard Dannatt. We Liberal Democrats oppose these appalling cuts and have set out credible alternatives to fund higher defence spend, including defence bonds and a higher digital services tax.
Does the Foreign Secretary not see the contradiction between her desire for a world free from extreme poverty on a liveable planet and these savage cuts? Where is the bravery and leadership that previous Labour Governments and the coalition Government showed to the poorest in the world? Where has the Government’s full commitment to address climate change gone? Where are the Labour party’s values, where did it mislay its moral compass and where is its strategic logic? When and how will she return to the 0.7% of GNI target enshrined in law by the coalition Government?
Dr Ellie Chowns (North Herefordshire) (Green)
Pitching defence against development is utterly short-sighted—it is a totally misjudged binary. These aid cuts make us all less secure. The Foreign Secretary has talked about this as a difficult choice; in fact, it is the wrong choice. Let us be clear: under this Labour Government, we are seeing deeper aid cuts in the UK than in any other G7 country, which will take us down to the lowest level of overseas aid—0.24% of gross national income—since 1970, which will have hugely damaging effects globally. I have three specific questions for the Foreign Secretary. First, when will she publish the country allocations so that we can see exactly where the axe is falling? Secondly, how will she ensure that poverty alleviation remains the focus of overseas development assistance in this context? Thirdly, how does she square this with the comments of her own Prime Minister, who has previously acknowledged that cutting aid makes the world less secure?
Order. Please answer just one question, Foreign Secretary.
The hon. Lady’s party wants to walk away from NATO, which would actually make our defence more expensive and more difficult, rather than ensuring that we can support both defence and international aid. This Government will still be the fifth largest investor in international development as a result of these changes. It is challenging, but it is also about being able to support both our values and the national interest.