Foreign, Commonwealth and Development Office

Monica Harding Excerpts
Wednesday 4th March 2026

(1 day, 17 hours ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Monica Harding Portrait Monica Harding (Esher and Walton) (LD)
- View Speech - Hansard - -

I want to express my thanks to the FCDO and officials for their hard work helping British nationals overseas during the conflict in Iran and the middle east, including helping my own constituents get home.

This debate comes at a moment of extraordinary global crisis. More than 130 conflicts are active, 120 million people have been forcibly displaced, and over 300 million face acute hunger. There is war in Europe, and the middle east now stands on the precipice of full-scale regional war. It is against this backdrop of a world on fire that the Government are pushing through with the deepest cuts to British aid and development in a generation, bringing aid to its lowest level this century—from 0.7% when the Liberal Democrats were in government to 0.5% under the Conservatives, and now to just 0.3% under the Labour Government. This is a far cry from the Labour Government of Tony Blair and Gordon Brown, who made it their aim to make poverty history.

This Labour Government’s cuts will contribute to more than 600,000 additional deaths by 2030. Let me pre-empt the Minister telling me that times have changed, and remind him that the legally enshrined 0.7% was designed to slide up and down with GNI and was made after the 2007 financial shock. This Government’s cut was made two days before the Prime Minister went on his first visit to Donald Trump, taking with him a cut that mirrored the one that the President had made to his own foreign assistance budget the previous month, at the start of his Administration. Congress has pushed back on that now and partially reversed the cuts, and now the cuts to ODA by this UK Labour Government run deeper than those of the United States. When today’s USA shows more restraint than this Government, something has gone badly wrong.

Development is no longer treated as a pillar of British foreign policy; it has been quietly demoted to an inconvenience. Let us be clear about what that framing of the cut gets wrong. The decision to slash aid budgets to shore up defence spending is a false economy—and a strategically illiterate one at that. Defence, diplomacy and development are mutually reinforcing pillars of a coherent foreign policy. One cannot be hollowed out without the other two being weakened.

Getting defence spending to 3% of GDP as soon as possible is vital, and the Liberal Democrats have laid out ways to get to that figure with the defence budget as it is now. I can point the hon. Member for Bishop Auckland (Sam Rushworth) to the debates in which those ways are laid out, and I would be very happy to go through them with him. He may not agree with the ways that we are going to get to that figure, but they do exist.

Leading voices in defence, including former chiefs of staff and two former heads of MI5, have criticised the decision to slash development in order to increase defence spending, warning that it risks making us weaker and making it harder to prevent conflicts in the first place. Prevention is cheaper than war. Aid stabilises fragile regions before crises require military intervention. It addresses grievances before they become insurgencies and builds good will, which supports diplomacy and trade. It sustains UK influence.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - - - Excerpts

I am grateful to my constituency neighbour for giving way on that point. Would she like to give us a couple of examples where overseas development aid has prevented crises in the way that she describes?

Monica Harding Portrait Monica Harding
- Hansard - -

I would love to, and I will come back to the hon. Member with those at another point, but I am up against the clock at the moment. As I go through my speech, there may be some examples.

Aid is not charity, as the Minister for International Development suggested to the International Development Committee. It is a strategic tool that makes Britain safer and secure. It reduces the drivers of migration to these shores and strengthens health systems before pandemics cross borders. While we retreat, China and Russia expand their influence across Africa, the middle east and south Asia, filling the vacuum that we leave. UK aid to Africa has already been reduced by £184 million.

Countries such as Ethiopia, Syria, South Sudan, Somalia and fragile Sahel states—tinderboxes—have seen significant bilateral cuts, alongside a very thin Africa strategy released quietly before the Christmas recess. Africa has the world’s youngest and fastest-growing population and a projected $30 trillion economy by 2050. It represents a huge future trading opportunity, but our cuts risk weakening those relationships—relationships on which our country’s growth relies.

Even international climate finance, which has been rhetorically protected, could fall by nearly £3 billion, we are told by The Guardian. Programmes such as the biodiverse landscapes fund, the blue planet fund and the climate and ocean adaptation and sustainable transition programme are under threat, and support for Brazil’s Tropical Forest Forever Facility, which we co-designed, has yet to materialise. Intelligence chiefs have warned that the collapse of ecosystems like the Amazon and coral reefs will not just risk our climate obligations but trigger food shortages and unrest and lead to war reaching our shores.

In reality, the cuts are even worse than they look. Around 20% of the aid budget is projected to be spent on in-donor asylum costs by 2027-28, meaning that the amount reaching people overseas could fall to just 0.24% of national income. Is the British taxpayer aware that the money earmarked for the poorest in the world is being spent on asylum hotels in this country?

What is most striking about these supplementary estimates is not only their scale but the absence of a coherent strategy underpinning them. There has been no clear argument made, no case put forward and no honest reckoning with what is being lost and what the impact will be. There is no published road map explaining which capabilities we are prepared to lose and whether we intend to rebuild them later. There has been no serious articulation of why slashing bilateral aid strengthens Britain’s long-term interests. There is just a quiet hope that the cuts will land without anyone looking too closely.

In fact, the future of the very organisation tasked with scrutinising the UK’s aid and development spend—the Independent Commission for Aid Impact—is in doubt. One of its inquiries is on the impact of the Government’s ODA cuts. The very oversight mechanisms that hold the Government to account are being dismantled.

I will briefly turn to our soft power institutions. I will not dwell on them because other Members already have. The BBC World Service and the British Council—two of Britain’s most powerful instruments of influence, funded at a tiny cost to the taxpayer—are having their budgets eroded, the latter burdened by a Government loan with interest payments of up to £15 million a year.

Then there is the vital question of capacity and expertise. The FCDO is planning staff reductions of up to 25%, and the Department for Business and Trade, which works in-country to promote trade relations, is facing a 20% staffing cut, yet the Government have failed to produce a workforce plan before the cuts. It is cuts for cuts’ sake. All of this represents a hollowing-out of capability. Rebuilding that expertise later is neither quick to do nor cheap, and it is very difficult to bring back once it has been torn down.

The question is unavoidable: what is the plan? The Government must change course and set out a clear, binding timetable to return to 0.7%. I look forward to the Minister updating us on how he will do that. The Liberal Democrats will take a different approach to funding the defence uplift, and we have laid it out in this House. In the meantime, the Government must act to limit the damage that these cuts will cause. That means backing meaningful debt relief for low-income countries, redirecting the share of the aid budget spent on in-donor asylum costs back to aid, and safeguarding vital accountability mechanisms such as the ICAI.

In an era of intensifying geopolitical competition, rising instability and growing humanitarian need, Britain faces a choice: we can be an engaged, outward-looking power, shaping events, building partnerships and investing in prevention; or we can shrink our presence, reduce our expertise and hope that the consequences do not rebound on us—a decision to retreat, a decision for the short term, not the long term. The Government’s cuts show that we are drifting towards the latter. Once expertise is lost, once trust is eroded, and once influence is surrendered, it is far harder to recover than it is to protect.

Britain still stands tall in the world, but these cuts threaten to diminish that. Britain does not lead by retreating. We lead by showing up, keeping our word and standing with our partners when it matters most. I urge the Government to reclaim our moral authority, rebuild our global influence and lead once again on the world stage.

Judith Cummins Portrait Madam Deputy Speaker (Judith Cummins)
- Hansard - - - Excerpts

I call the shadow Foreign Secretary.