27 Mar
Lords Chamber
Official Development Assistance

The debate in the House of Lords focused on the reduction of the UK's Official Development Assistance (ODA) funding to 0.3% of gross national income and its broader impacts on national and international obligations. Lords from various parties and roles were keen to scrutinize the morality and practicality of this reduction, alongside exploring potential implications on international partnerships and development projects.

0.3%

Reduction of UK's ODA funding to 0.3% of GNI from a previous 0.7%.

£0.5 billion

Immediate cut from ODA announced, raising questions on fiscal priorities compared to global fiscal reform.

Key Discussion Points:

  1. Moral Implications: Initiated by Lord Carey of Clifton, questions on the moral grounding of the cuts unveiled concerns regarding the ethical stance of the UK in the global community. This set the stage for discussions on strategic rearrangements within ODA.
  2. Strategic Approaches and Allocations: Lord Collins of Highbury highlighted the government's commitment to leveraging expertise beyond ODA to achieve development goals. Emphasis was placed on aligning cross-departmental strategies to support economic growth in partner countries.
  3. Sustainability and Timeliness of Cuts: Baroness Sugg raised concerns about the timeline for implementing cuts, urging a careful and considerate approach. The peer stressed avoiding abrupt disruptions in ongoing programs to maintain credibility and protect vital initiatives.
  4. Broad Economic and Security Implications: Lord Browne of Ladyton and others remarked on the interconnectedness of aid with broader economic and security benefits, challenging the dichotomy within development and defense spending.
  5. Global Tax Avoidance and Funding Impacts: Lord Purvis of Tweed critiqued inconsistencies in fiscal policies, particularly around global tax avoidance that potentially contradicts moral grounds of the ODA cuts.
  6. Domestic vs. International Costs: Lord McConnell of Glenscorrodale highlighted concerns over domestic asylum and refugee costs being covered by ODA, with calls for redirection of savings to maximize overseas development impacts.

Outcome

The consensus within the House indicated widespread concern over the impact of reduced ODA funding on both the UK's global standing and its development commitments. The peers collectively called for a more comprehensive and transparent approach from the government, ensuring that reductions do not disproportionately harm vulnerable groups or compromise the integrity of ongoing projects. The government was urged to maintain commitments through refined strategic uses of other levers beyond fiscal aid, with reassurances that spending cuts would be carefully executed to minimize collateral impacts.

Key Contributions

Lord Carey of Cliftonundefined
Crossbench

Initiated the debate by questioning the moral implications of ODA cuts, citing their contradiction with past national commitments to global leadership in development.

Lord Collins of Highburyundefined
Labour

Defended the rationale behind ODA cuts as a strategic need for national security adaptation.

Lord Browne of Ladytonundefined
Labour

Highlighted the critical security and economic benefits of demining projects funded by ODA, advocating against a false aid-security dichotomy.

Baroness Suggundefined
Conservative

Questioned the operational timeline for implementing ODA cuts, stressing a need for consistent communication and impact analysis transparency.

Lord Purvis of Tweedundefined
Liberal Democrats

Condemned economic decisions allowing tax avoidance that contradict aid reductions, questioning fiscal moralities.

Lord McConnell of Glenscorrodaleundefined
Labour

Criticized the allocation of ODA for domestic asylum costs, urging for savings to be redirected back into overseas development.

Original Transcript
Lord Carey of Clifton

To ask His Majesty’s Government what assessment they have made of the moral implications of their policy of reducing Official Development Assistance to 0.3 per cent of gross national income.

The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office
Lord Collins of Highbury
Lab

My Lords, protecting our national security is the first duty of any Government. This difficult choice reflects the evolving nature of the threats we face and the strategic shifts required to meet them.

This Government remain fully committed to the United Kingdom playing a globally significant role on development. We will use all levers to support our development aims and we will work to mobilise finance beyond ODA to better meet the development needs of our partners.

Lord Collins of Highbury
Lab

I thank the noble and right reverend Lord. On his first question, importantly, the Foreign Secretary will lead a cross-departmental process to consider all the aid allocations.

We will work through how our ODA budget will be used as part of ongoing spending review and resource-allocation processes, based on various factors, including impact assessments. To repeat the point I made before, it is important that our development efforts are seen not just through ODA.

The United Kingdom uses expertise, policy influencing, global convening and other trade and economic levers. I have visited many African countries in the last six months; I know what leaders are telling me.

Our new approach to developing partnerships is about leveraging greater investment, economic growth and empowerment through the creation of jobs. That is how we will deliver change, and that is what we will continue to do.

Lord Browne of Ladyton
Lab

My Lords, I draw the House’s attention to my entry in the Register of Members’ Interests.

I also draw the attention of my noble friend the Minister to a question I asked last Thursday, in the debate on the G7 Statement, about the precarious nature of the FCDO’s global demining programme, which was threatened at that time because the money came from ODA.

I do this because, in many contexts, an artificial dichotomy between aid and security spending is something of a false dichotomy.

Consequently, I ask my noble friend: what are we doing with our allies to ensure that the ODA money, which we have to spend collectively, is targeted where it can do the most good and, importantly, yield tangible benefits for peace and security?

Lord Collins of Highbury
Lab

My noble friend makes a really good point. The demining projects are about increasing security, but they are also vital for economic growth and development.

I have been to countries where we have supported those projects and where agriculture has increased as a consequence of being able to deal with that issue. So my noble friend is absolutely right: this is about economic growth but it is also about security.

As he knows, we have secured the contract for HALO to ensure that we can continue this excellent work.

Baroness Sugg
Con

My Lords, the Minister will know that, following the decision to cut aid to 0.3% of GNI by 2027, there have been calls to maintain spend until 2027 to protect vital programmes and to ensure that the cuts are done in a careful and considered way.

The Minister referred to the process; may I press him on a timeline? When will the decisions be made and the impact assessments published, and when will Parliament have the opportunity to debate the details of these decisions?

Lord Collins of Highbury
Lab

It is very difficult to give a direct answer; what I can say is that we are currently working through all programmes.

We want to avoid a cliff-edge like that which, as the noble Baroness knows, happened in the past: programmes were stopped midway through, and damage was done to our credibility and confidence. We are not going to do that.

We are looking at all programmes and making plans to reduce spending over time. Let me reassure her that we will come forward with details when the spending review is completed.

We are going to avoid some of the mistakes of the past, and we will work with partners, multilaterally and bilaterally, to ensure there is not the sort of damage we saw in the past.

Lord Purvis of Tweed
LD

My Lords—

Lord McConnell of Glenscorrodale
Lab

My Lords—

Lord Kennedy of Southwark
Lab Co-op

My Lords, we will hear from the noble Lord, Lord Purvis, next, and then from my noble friend Lord McConnell.

Lord Purvis of Tweed
LD

My Lords, yesterday the Government failed to implement the global tax avoidance scheme for businesses earning profits of more than €20 billion, and which would raise over half a billion pounds this year, because they are waiting for President Trump’s approval.

Also yesterday, the Government announced in the Statement an immediate £0.5 billion cut to official development assistance, contradicting what the Minister has just said.

What is the morality of allowing large companies like Elon Musk’s X to avoid paying tax in the UK, while implementing programme cuts that disproportionately affect the most vulnerable women and girls around the world? What morality is to be found there?

Lord Collins of Highbury
Lab

I come back to the point I made at the beginning, because I am absolutely passionate about this. When I visited African countries, they were concerned about ensuring that they have a proper tax base in their own country. That is why the HMRC—[Interruption.

] The noble Lord does not need to shout at me. We have embedded people in a number of African countries to help them widen their tax base, and we are working collaboratively with partners to ensure that that happens.

We want to see economic growth as the driver of change around the globe, and I am absolutely committed to that. I do not accept the hypocrisy argument that the noble Lord is making.

Lord McConnell of Glenscorrodale
Lab

My Lords, one of the more disappointing aspects of the Government’s decision was to retain payments through ODA towards refugee and asylum costs in the UK. The Government have promised to reduce those costs.

Will any savings from ODA spending on hotels and other asylum and refugee costs in the UK be retained within ODA and therefore be freed to again increase the resources available for overseas development?

Lord Collins of Highbury
Lab

I am glad the noble Earl asked that question, because he needs to be reminded that we are in a different situation.

We are in a generational change: the threat this country faces has never been faced before, and we know that we have to return to defence spending to ensure that the people of this country remain secure.

I am not going to be lectured by noble Lords opposite about defence spending, when they reduced it so much over the years that we have to work so hard to return to it.

All content derived from official parliamentary records