PARLIAMENTARY DEBATE
Official Development Assistance - 26 November 2020 (Commons/Commons Chamber)
Debate Detail
Given the impact of the global pandemic on the economy and, as a result, the public finances, we have concluded after extensive consideration—and, I have to say, with regret—that we cannot for the moment meet our target of spending 0.7% of gross national income on ODA, and we will move to a target of 0.5% next year. Let me reassure the House that this is a temporary measure. It is a measure we have taken as a matter of necessity, and we will return to 0.7% when the fiscal situation permits.
The relevant legislation, the International Development (Official Development Assistance Target) Act 2015, envisages circumstances in which the 0.7% target may not be met, in particular in the context of economic pressures. The Act provides for accountability to Parliament in that event, and I will of course report to the House in the proper way. Equally, given the requirements of the Act, the fact that we cannot at this moment predict with certainty when the current fiscal circumstances will have sufficiently improved and our need to plan accordingly, we will need to bring forward legislation in due course.
We are not alone in facing these painful choices. All countries are reconciling themselves not just to the health impact of the pandemic, but to the economic impact of covid-19. It is worth saying that on the 2019 OECD data, only one other G20 member allocated 0.5% or more of GNI to development spending, and that was before the pandemic. Many countries are reappraising their spending plans, as we have been forced to do. As a result, we nevertheless expect our development spending next year to total around £10 billion, maintaining our status as one of the leading countries in the world in ODA spend.
I can reassure the House that we will retain our position as a leader in the global fight against poverty. We will remain committed to following the rules set by the OECD’s Development Assistance Committee, and we will ensure the maximum impact from our aid through the strategic integration we are driving as a result of the merger at the Foreign, Commonwealth and Development Office, the strategic thinking that is informed by the integrated review, and the further changes we are now making on how we allocate ODA to support a more integrated and overarching approach.
Let me say a little more on that integrated approach. Our starting point is the integrated review, with which we are setting the long-term strategic aims of our international work, based on our values and grounded in the British national interest. To achieve this, we will be taking a far more joined-up approach right across the breadth of government. That is why the Prime Minister created the Foreign, Commonwealth and Development Office, bringing diplomacy and development together, in lockstep with the work of our other Departments. ODA is a vital, central and absolutely indispensable element of that strategic approach, but to maximise its effectiveness it must be used in combination with our development policy expertise, our security deployments and support abroad, and the strengthened global co-operation that we drive through our diplomatic network. We make our aid go further by bringing it together with all these other elements, and by making sure that they are all aligned and pushing in the same direction.
Last week, the Prime Minister set out how we are strengthening our defence and security capabilities. That will boost our standing in the world, while also contributing to our development efforts, including our soft power abroad. The clearest illustration of that is the peacekeeping that we do. We have British troop deployments in Afghanistan, South Sudan, Somalia, the Democratic Republic of the Congo and elsewhere, which work hand in hand with our development and diplomatic efforts. Indeed, we are demonstrating that with our latest deployment of 300 UK troops to Mali. Our security and defence budget also helps countries to deal with new, emerging and evolving threats, for example in supporting Nigeria and Kenya to assess and strengthen their cyber-security resilience. We will set out the full detail of the integrated review early in the new year, as we launch our presidencies of the G7 and COP26, with 2021 a year of leadership for global Britain as a force for good in the world.
This new strategic approach will allow us to drive greater impact from our £10 billion of ODA spending next year, notwithstanding the very difficult financial pressures we face. I will prioritise that £10 billion of spending in five particular ways. First, we will prioritise measures to tackle climate change, protect biodiversity and finance low-carbon and climate-resilient technologies, such as solar and wind, in poor and emerging economies. I can reassure the House that we will maintain our commitment to double international climate finance, which is vital to maintaining our ambitions in this area as we host COP26. We will leverage our aid support through our diplomatic network, to galvanise global action and to make sure that countries come forward with ambitious, game-changing commitments in the lead-up to November next year.
Secondly, we will prioritise measures to tackle covid, and promote wider international health security. We will maintain our position as a world leader, investing in Gavi, the Vaccine Alliance, COVAX, the Global Fund to Fight AIDS, Tuberculosis and Malaria, and the International Finance Facility for Immunisation. We will continue to support and strengthen the World Health Organisation, as the second largest state donor; I spoke to Dr Tedros just yesterday about our efforts in that regard. We will also use all our other levers to maximise British impact. For example, we have magnified our COVAX contribution through our diplomatic efforts, which helped to convince the board of the World Bank to announce additional funding last month of up to $12 billion for covid vaccines, tests and treatments. Again, I spoke to World Bank president David Malpass just last night about our important collaboration in that area.
Thirdly, we continue to prioritise girls’ education, because it is the right thing to do and because the fortunes of so many of the poorest countries depend on tapping the full potential of all their people, which must include women and girls in education. Our global target, working with our partners, is to get 40 million girls into education and have 20 million more girls reading by the age of 10. It is a major priority for global Britain as a leading supporter of the Global Partnership for Education, and just next year we will raise $4 billion globally, including through our UK-Kenya summit.
Fourthly, we will focus ODA on resolving conflicts, alleviating humanitarian crises, defending open societies, and promoting trade and investment, including by increasing UK partnerships in science research and technology, because these are the building blocks of development and they require a long-term strategic commitment.
Finally, at all times we will look to improve our delivery of aid in order to increase the impact that our policy interventions have on the ground, in the countries and the communities that they are designed to benefit and help. We will strengthen accountability and value for money, reducing reliance on expensive consultants for project management and strengthening our in-house capability to give us more direct oversight and control, including by removing the total operating cost limits that were introduced when the Department for International Development was established—a limit that applied only to DFID.
As a result of this spending review, the FCDO will take on a greater role in ensuring the coherence and co-ordination of development-related spending right across Whitehall. To maximise the strategic focus that I have talked about, I will run a short cross-Government process to review, appraise and finalise all the UK’s ODA allocations for next year in the lead-up to Christmas.
This is a moment of unprecedented challenge. In all parts of the House, we are defined by our willingness to make the difficult choices, not just the easy ones. With the approach that I have set out, we will maintain our international ambition. We will deliver greater impact from our aid budget at a time of unparalleled financial pressure.
Like many in the House, I am proud of our aid spend. I am proud of the big-hearted generosity of the British public, which we amplify with our diplomatic energy on the world stage. I am proud of the huge amount we do to support the poorest and the most vulnerable, right around the world. The United Kingdom is out there every single day—our people on the ground in the disaster zones, in the refugee camps, tackling famine and drought, helping lift people out of poverty, striving to resolve conflicts and striving to build a more hopeful future for the millions of people struggling and striving against the odds. Even in the toughest economic times, we will continue that mission. We will continue to lead. I commend this statement to the House.
This Government have destroyed the long-standing cross-party support for spending 0.7% of GNI to eradicate global poverty and reneged on their promise to the British people, breaking a manifesto commitment and turning their back on all those they promised to champion: mothers, newborn babies and children who are dying from preventable causes, the tens of millions of girls who are out of school, and those whose lives and livelihoods have been destroyed by Ebola and malaria.
Britain and the world deserve better than a Foreign Secretary who has allowed the aid budget to be slashed, leaving our global reputation lying in tatters ahead of a year when the UK hosts the G7 and COP26. We know that we need a dramatic acceleration in the pace and scale of global climate action, and we all want the UN climate conference to be a success, but for that to happen we must harness the political will of other countries. It falls to the UK, as host, to lead by example, not withdraw, yet cutting the aid budget does exactly that and has already attracted outspoken criticism from vital partners. I pity the Foreign Secretary, having to explain to his counterparts that this is all part of his and the Prime Minister’s idea of “Global Britain”.
This Government have repeatedly delayed their review of foreign policy, with announcements being made on a whim. It is a disintegrated review. Do the Government actually have a strategy, a plan or even a vague idea? I have lost track of the number of times the Secretary of State has announced new development priorities, so perhaps he can confirm how long he will stick with these. Under the Conservatives, foreign aid has been diverted away from the world’s poorest. Will he now ensure that it is not squandered on vanity projects but instead focused on eradicating poverty and inequality?
In the year since the Conservatives pledged in their manifesto to “proudly” uphold the law to spend 0.7% of GNI on aid, we have been told by the Prime Minister that spending 0.7% of GNI is
“a goal…that remains our commitment.”—[Official Report, 16 June 2020; Vol. 677, c. 667.]
The Secretary of State has said that the commitment “is written in law,” and will be
“the beating heart of our foreign policy”.—[Official Report, 18 June 2020; Vol. 677, c. 945.]
His Ministers, the right hon. Member for Braintree (James Cleverly) and the hon. Member for Rochford and Southend East (James Duddridge), have told us, respectively, that
“the Government are completely committed to the 0.7% target…because it is the right thing to do.”—[Official Report, 9 July 2020; Vol. 678, c. 1198-1200.]
and:
“We are bound by law to spend 0.7%, so it is not a choice; it is in the law, and we will obey the law.”—[Official Report, 30 June 2020; Vol. 678, c. 147.]
Now they have decided they do not actually like obeying the law.
This Government are developing a reputation, and many within the Secretary of State’s own party do not like what they see. Yesterday, his own Minister, Baroness Sugg, resigned because abandoning our commitment
“risks undermining…efforts to promote a Global Britain”.
I stand ready to work with her, and with the hon. Members for Mid Derbyshire (Mrs Latham) and for West Worcestershire (Harriett Baldwin), the right hon. Members for Preseli Pembrokeshire (Stephen Crabb), for Sutton Coldfield (Mr Mitchell), for Ashford (Damian Green) and for South West Surrey (Jeremy Hunt), the hon. Member for Wyre Forest (Mark Garnier), the Chairs of the Defence and Foreign Affairs Committees—the right hon. Member for Bournemouth East (Mr Ellwood) and the hon. Member for Tonbridge and Malling (Tom Tugendhat)—the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley) and many more who I do not have time to list, to stop this retreat. Can the Secretary of State tell us when the necessary legislation will be brought forward? Can he confirm that he will spend 0.7% of GNI on aid this year, and what the estimated value of ODA will be?
This Government love to blame others for their shortcomings, especially when they cannot answer back. Rather than taking responsibility for their incompetence, spending £12 billion on a covid test and trace scheme that still is not working and wasting taxpayers’ money on over 184 million items of unusable PPE, this Government have chosen to make the world’s poorest pay for their failures.
The British people are extremely compassionate. They have seen a global health crisis cause devastation around the world and push millions of people into poverty, costing lives and livelihoods. They know that this is not a necessity but a political choice that this Government have made. We stand with them and oppose this ill-conceived, short-sighted decision.
The hon. Lady referred to a range of different issues. She referred to the UK’s work on disease and girls’ education. We entirely agree. These are total priorities, and that is why I set out the priorities—I appreciate that her response was written before she listened to what I said—so that I could give her and the House the reassurance that actually those are two areas that we will safeguard and prioritise. [Interruption.] No, we said we would safeguard those priorities.
The hon. Lady asked about climate change. As I made clear, our first priority will be measures to tackle climate change and protect biodiversity, and we will maintain our commitment to double the international climate finance, which I agree is very important as we go into COP26.
The hon. Lady asked about our international partners. Of course our international partners, whether they are non-governmental organisations or the heads of the international organisations, will want as much generosity as possible. We understand that. I spoke to the Secretary-General of the United Nations, the president of the World Bank, and Dr Tedros at the World Health Organisation yesterday. They understand the financial challenges and the health challenges, and they know that we will be a stalwart, leading member of the international community as a force for good in the world, notwithstanding the pressure that we and many others will now face.
The hon. Lady asked about the legislation. We will bring that forward in due course. Obviously we want to make sure that it is as well prepared and carefully thought through as possible. [Interruption.] She says that we do not have to. On the one hand, she has said that we are breaking the law and changing our mind on the law—[Interruption.] It is very clear under the legislation. She should go and check—
On the hon. Lady’s question about the 0.7%, it will still apply this year.
The hon. Lady criticises the Government for the choices that we have had to make in the face of a global pandemic and a financial emergency. It is not clear to me what choices Labour would make, that she would make. [Interruption.] Was she suggesting that we cut the money—
“we recognise that there has got to be cuts made…we’ve had a drop in GNI…those cuts shouldn’t come from DFID”
but should come from
“other government departments’”
spending on ODA. [Interruption.] The hon. Lady says, “Yes, yes, yes”—so does she advocate cutting the amount of ODA that the Department for Business, Energy and Industrial Strategy and the Department for Environment, Food and Rural Affairs spend on climate change? [Interruption.] Again, we come back to the basic point that, given the financial pressures we face, difficult decisions need to be made. [Interruption.]
When it comes to 0.7%, the House should recall that the Labour party has history on this. Members across the House, particularly the more long-standing ones, will remember that it was a Labour Government under Harold Wilson back in 1974—the year I was born—who first set the target of 0.7%. In the 46 years since—the whole of my lifetime—no Labour Government have ever hit 0.7%; not in a single year.
The hon. Lady talked in hyperbolic language about the damage that we will do with a shift to 0.5% and a £10 billion ODA budget. May I remind her that in the 13 years of the last Labour Government, not only did they never once hit 0.7% in any year—[Interruption.] The hon. Member for Cardiff South and Penarth (Stephen Doughty) does not like it. I will come to him in a second. The last Labour Government only ever hit 0.5% in two years out of 13.
The House need not take my word for it. The shadow Africa Minister, the hon. Member for Cardiff South and Penarth, was a Spad in DFID under the last Labour Government—
I supported the Foreign Secretary taking over the DFID portfolio because I knew that the rigour he would bring to ODA spending would mean that it was always in the British national interest. Indeed, the way he has spoken about it this morning reassures me of that. He has spoken quite rightly about girls’ education, not just because it is good for girls in other parts of the world but because it is good for Britain. He has spoken about climate change, not just because it is good for the poorest and most low-lying countries around the world but because it is good for Britain. He has spoken about vaccination, not just because it is most important for the most vulnerable in the world, but again, because it is good for Britain. So does he understand why so many of us are disappointed that, knowing how well he will spend this money, not only in the interests of others but in the British national interest, we hear that it has been cut? I am sure that he feels that, too.
Could I perhaps ask the Foreign Secretary to look at a slightly different way of counting, because we all know that the 1970s DAC rules need to be reformed? I am not alone in saying this. The French Government have said it; the Netherlands Government have said it; and the German Government have said it. In fact, I think that I am right in saying that everybody, except the Swedish Government, has said it. Could we not count the enormous sums that the Foreign Secretary is already spending on vaccination programmes through the vaccine taskforce and the enormous money he is spending on UN duties—not just the 15% that the DAC allows him to count—and could we not count that stability as our ODA capability and reinforce what he has done? Then perhaps we can look at the Bill he may be forced to introduce, and make sure that it is not an open-ended Bill but has a sunset clause in black and white that we can vote on, too.
My hon. Friend asked a range of questions about whether we could reconfigure money. We are not going to unilaterally pull out of the DAC rules, but he makes a good case for reform of the DAC rules. For example, some of the military spend, particularly on such matters as peacekeeping, is not counted. Clearly, it is not just good for military security in the countries where it is focused but an important element of soft power, and it is something we should do. However, I think that the right thing to do is to work on that reform from within DAC, rather than pulling out unilaterally, and that will take some time, but I take on board his comments.
My hon. Friend asked how we will make sure we get back to the target, and I am very happy to keep talking to him about that. The No. 1 thing in my view, and I would gently suggest this to him, is that we are still spending £10 billion next year on ODA. When I think of what he said about his constituents and how they will feel about the latest measures—we are all challenged by this—I think that they will think that we are making difficult decisions, but the right ones and the justifiable ones, in the very exacting situation in which we find ourselves.
The fact is that this is not what was promised. This is not what was promised to the people of Scotland in 2014. This is not what was promised in the Conservative manifesto 11 months ago. The Foreign Secretary talks about scrutiny of spend, and I absolutely agree, but my inbox—I dare say colleagues feel the same—is unanimous this morning in opposing this move. It is fair to say that in Scotland we have a disproportionate interest in international development, because of the history we have with our churches, our non-governmental organisations, our trade unions and our universities. Civic Scotland is keen on international development, and DFID—now merged, of course, into the FCDO—is based in East Kilbride. This is a betrayal: not just a betrayal of those promises, but a betrayal of some of the poorest and most vulnerable people in the world, who are also facing covid, the economic consequences and climate change, and they are going to be left by this in a dreadful situation.
When I say it is a betrayal, I actually exempt the Foreign Secretary from that. I do not think that this is coming from him. I do not think that he has stopped it, but I do not think it is actually coming from him. I think that it is coming from the people around him and behind him. They are the people in the shadows, with their phoney think-tanks and their blogs. They are the people who proudly denigrate international aid because it is against their project, and the people who want to link international aid to trade policy in the most grubby way possible. They are the people who get excited about a red, white and blue flag on a tail fin, and the people who think that what we need right now to buoy our spirits is a new royal yacht. They are the people who want to spend, as the Government have committed to doing, £120 million on a festival of Brexit—ye gods!
We have today a moment of real clarity and divergence—that Scotland and the UK are two different places with two different ambitions on two different paths. It is a matter of fact that the cynics were right. After the UK’s politicisation of aid by merging DFID into the FCDO, there has been a crippling raid on its budget. DFID in East Kilbride is a deeply sad place this morning. Scotland independent—because of our interests, our history, our capacity and our ambition—will put international development at its heart. We will be committed to 0.7%, and it is clearer than ever today to the people of Scotland that the best way to achieve that aid policy, to be that global citizen, is independence.
The hon. Gentleman said that this decision was not what was promised in 2014 or at the last election. I hesitate to remind him that that was before the pandemic and the coronavirus, and before we were faced with—[Interruption.] Well, he is quite right to say that there are always domestic pressures and competing priorities in relation to the public finances, but we are not under any normal set of circumstances. We have the worst economic contraction in over 300 years. We have a deficit double the size that we faced after the last financial crash, and we are having to make very difficult decisions. If he thinks we have made the wrong decision, I would like to hear from the SNP—a rhetorical, not an actual question—what it thinks should be cut in the investments the Chancellor announced yesterday in order to hit 0.7%.
The hon. Gentleman referred—in what I thought was actually pretty unsavoury language—to a crippling raid on ODA. We will spend £10 billion next year. His inbox may be different from mine, but I think our constituents will understand, because they live in the real world, that we have to make difficult decisions. This is still an extraordinary contribution that the taxpayers of this country will make to alleviate suffering and poverty around the world.
May I ask the Foreign Secretary how much the amount of money would have gone down if we had kept 0.7% with an 11% contraction of the economy? Is that well over £1 billion? How much extra is being taken by our coming down from 0.7%? Is the proposed legislation designed to make sure we come back to 0.7% or to make it possible to avoid coming back to it for a long time?
I end by saying that I first stood for election when the Foreign Secretary was born, and I became a trustee of Christian Aid to fight to get the Government to meet the commitment they had made a long time before to 0.7%. I rejoiced when we met it. It was not put on us by the Liberal Democrats; it was in our manifesto in 2010. I am glad that the Foreign Secretary was able to say in July that we would stick to 0.7%.
My hon. Friend asked some further questions about our seriousness in getting back to 0.7%. We are serious. He is right to say that it was a manifesto commitment that we were proud of, but I think that the country expects us to stand up and make difficult decisions, given the necessity of the situation that we face. We have made it clear that it is temporary, and we will get back to it just as soon as the public finances allow.
“too often, aid has lacked coherence, oversight or appropriate accountability across Whitehall.”
The same could be said in relation to Parliament. To address that, will he agree to present to the House an impact assessment of the cuts? Will he also agree to support the International Development Committee’s change of remit, so that we can scrutinise all ODA, so that both taxpayers and Members of Parliament may be assured that the money is being well spent?
Does the Foreign Secretary agree that, while the silo budgets classified as ODA will be squeezed, we should take the opportunity that the global financial crisis has forced on everyone—as the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), set out—to review fully the DAC rules on which we classify our ODA spending? In the meantime, will the Foreign Secretary make it clear to the House that all Government spending that works to strengthen the stability, governance, health, education—and I take this opportunity to thank Baroness Sugg for her extraordinary work over the past year on girls’ education—and climate shock resilience of developing countries supports all the sustainable development goals? Will he commit to review the historical multilateral payments commitments, which could be used much more impactfully to drive the UK’s priorities?
May I say to the Foreign Secretary that of all the promises that our country has made, to choose to break this promise to the world’s poorest people is unforgivable? We are talking about a cut of roughly one third in the aid budget. The thought that some babies might not be delivered safely, or some children might not be able to go to school or be vaccinated so that they do not die of the diseases that our children do not die of, should trouble every single one of us.
The Foreign Secretary said that he intends to make decisions about where the reductions will fall before Christmas. Will he assure the House that the decision on whether that will go ahead will be brought to Parliament, so that we can decide whether to break our promise or, instead, to keep our word?
My right hon. Friend and I both know that, seen from the Biden White House, this is a dismal start to our G7 chairmanship. As the former Prime Minister said yesterday, the 0.7% is a promise that we as Tories do not need to break. My right hon. Friend knows, does he not, that taking a further 30% out of the development budget will drive a horse and cart through many of the plans that the British Government have so strongly supported for eliminating poverty. It will withdraw access to family planning and contraception for more than 7 million women, with all the misery that that will entail; 100,000 children will die from preventable diseases; and 2 million people—mainly children—will suffer much more steeply from malnutrition and starvation as a result of these changes. In spite of what he says about prioritising girls’ education, which is extremely welcome, under the existing plans probably 1 million girls will not be able to go to school. I hope that he will bear in mind that these reductions make little difference to us in the United Kingdom, but they make a massive difference to them.
My right hon. Friend talked about ICAI. As he knows, I am committed to reinforcing ICAI’s role; we welcome the transparency and scrutiny. Finally, he talked about the US. With respect, I disagree. At 0.5% next year, we will still be spending a greater proportion of GNI than the US. Given the widespread cross-party concerns in the US about defence spending within the European context, I think it will welcome the fact that we are increasing our security and defence budget.
“International aid saves lives. It supports the world’s most fragile and it gives the world hope.”
Those are not my words, but the words of just one of many constituents who have contacted me to express their anger and sadness at the decision to reduce the international aid budget to 0.5% of GDP. Has the Foreign Secretary carried out an impact assessment identifying how many lives could be lost as a result of slashing assistance to some of the world’s poorest countries?
“when the fiscal situation allows.”—[Official Report, 25 November 2020; Vol. 684, c. 850.]
What exactly does that mean, and can my right hon. Friend set out the steps that the Government will take to return us to that aid target?
We are hopeful about a vaccine for next year, but we have to be cautious because we are not there yet. I am afraid there is an inherent degree of uncertainty about the situation, which is why we are in the position of not being able to rely just on the limited derogation written into the legislation which allows an ex post facto, if you like, derogation, having inadvertently missed the target. That is not the position we are in. We will, as I said, do it as soon as the fiscal conditions allow.
We are very concerned about the position in Xinjiang. We recently made Five Eyes statements on it and brought together, in the United Nations Third Committee, a much broader pool of countries to express our concern. What needs to happen now is that the UN Human Rights Commissioner, or another independent fact-finding body, is able to have access to check the facts, because China’s rejoinder is always that this is just not happening. There are too many reports that it is. We need to get to the bottom of this, and the UN Human Rights Commissioner has a role to play.
“I assure the hon. Gentleman that we are committed to spending 0.7% of GNI on aid.”—[Official Report, 30 June 2020; Vol. 678, c. 142.]
Will the Secretary of State confirm whether he was not being truthful with the House at that time, or did the Chancellor and the Prime Minister simply not tell him what they were planning to do?
Virtual participation in proceedings concluded (Order, 4 June).
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