International Aid: Treasury Update

Robert Neill Excerpts

Programme motion
Tuesday 13th July 2021 Commons Chamber

[The Prime Minister (Boris Johnson)]

I beg to move,

That this House has considered the Written Ministerial Statement relating to Treasury Update on International Aid, which was made to the House on Monday 12 July.

I believe that, on this vital subject, there is common ground between the Government and hon. Members on both sides of the House, in the sense that we believe in the power of aid to transform millions of lives. That is why we continue to agree that the UK should dedicate 0.7% of our gross national income to official development assistance.

This is not an argument about principle. The only question is when we return to 0.7%. My purpose today is to describe how we propose to achieve this shared goal in an affordable way.

Here we must face the harsh fact that the world is now enduring a catastrophe of a kind that happens only once a century. This pandemic has cast our country into its deepest recession on record, paralysing our national life, threatening the survival of entire sectors of the economy and causing my right hon. Friend the Chancellor to find over £407 billion to safeguard jobs and livelihoods and to support businesses and public services across the United Kingdom. He has managed that task with consummate skill and ingenuity, but everyone will accept that, when we are suddenly compelled to spend £407 billion on sheltering our people from an economic hurricane never experienced in living memory, there must inevitably be consequences for other areas of public spending.

Last year, under the pressure of the emergency, our borrowing increased fivefold to almost £300 billion—more than 14% of GDP, the highest since the second world war. This year, our national debt is climbing towards 100% of GDP, the highest for nearly six decades. The House knows that the Government have been compelled to take wrenching decisions, and the International Development (Official Development Assistance Target) Act 2015 expressly provides that fiscal circumstances can allow departure from the 0.7% target.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I am grateful to my right hon. Friend and the Chancellor for their constructive engagement with those of us who have been profoundly concerned about our departure from the aid target. Will he reconfirm to me and to the House that this is not a fiscal trap, and that the mechanism set out in a written ministerial statement is a genuine and full-hearted attempt to return to our commitment of 0.7% at the very earliest economically sustainable opportunity?

[The Prime Minister]

I thank my hon. Friend for his work on and expertise in this matter. I know how deeply he cares about this, in common with many other Members across the House, and I can indeed give him that confirmation. The decision that we made was temporary, to reduce our aid budget to 0.5% of national income.