This country has been and always will be open and outward-looking, leading in solving the world's toughest problems and striving to be a force for good in the world. Whether it is stepping up to support desperate Syrians and Yemenis in conflict zones, leading the way in eradicating Ebola and Malaria, or supporting millions of children to gain a decent education. I am proud that UK aid is keeping the UK safe while helping the world’s poorest stand on their own two feet.
Nevertheless, we must be honest about where we are. The UK is currently experiencing its worst economic contraction in 300 years because of the pandemic, with a budget deficit double that caused by the 2008 financial crisis. At this time of unprecedented crisis, tough choices must be made, which is why the Chancellor announced a temporary reduction in the UK’s ODA budget from 0.7 per cent to 0.5 per cent of the UK's Gross National Income (GNI).
On a personal note, I am, of course, saddened to see this change brought about, although fully understand why the Chancellor has had to make the decision. I have seen first-hand the impact our aid programmes can achieve, having visited a refugee camp supported by UK Aid in Tanzania. Much of this work safeguards and educates the most vulnerable, especially women and children. Along with strategic work to reduce corruption and promote trade, giving nations greater economic independence and resilience. Everyone in Government knows how important this work is, and I have been assured that work such as this will continue as we remain one of the world’s most generous and supportive nations on the international stage.
The UK will be spending more than £10 billion in 2021 on its seven ODA priorities, as set out by the Foreign Secretary – climate change and biodiversity; global health security, including Covid-19; girls' education; responding to humanitarian crises, such as those in Yemen and Syria; science and technology; resolving conflicts and defending open societies, including human rights; and promoting trade.
As one of the most generous aid donors in the G7, with a commitment considerably higher than the OECD average, and coupled with our expertise and convening power, the UK remains a development superpower. The UK is, for example, the biggest bilateral donor to the Global Partnership for Education (GPE), the largest fund in the world dedicated to improving education in developing countries; and the World Bank International Development Association (IDA19), which works to accelerate progress toward the UN Sustainable Development Goals (SDGs).
I have been assured that the UK will return to 0.7 per cent as soon as the fiscal situation allows.
I appreciate concerns about the specific impact of the temporary aid budget reduction on funding for Voluntary Service Overseas (VSO). Again, the impact of the global pandemic on the UK economy has forced the Government to take tough decisions.
The UK remains at the forefront of and is one of the largest donors to, the international response to the pandemic. The Government has made available new public commitments worth up to £1.3 billion of ODA to counter the health, economic, and humanitarian impacts of COVID-19 and support the global effort to distribute vaccines equitably. In addition, in 2020, FCDO adapted programming amounting to more than £700 million.
The FCDO has drawn on its full range of development and diplomatic expertise. Demonstrated, above all, by efforts to set up the international structure that is supporting the provision of COVID-19 vaccines to developing countries – the COVAX Advanced Market Commitment – and the UK is one of the largest bilateral donors to it, contributing £548 million.
Vaccines aside, the UK has also spent ODA to tackle the humanitarian consequences of the pandemic. In responding to the increased risk of famine, caused in part by COVID-19, the Foreign Secretary launched a ‘Call to Action’ late last year, which has since resulted in an additional £180 million being provided to more than seven million of the most at risk people in developing countries, helping to alleviate extreme hunger.
The Foreign Secretary has confirmed that investing in global health is one of seven key priorities for ODA spend in 2021 – to tackle COVID-19 and promote global health security.
I will, of course, continue to monitor how our aid programmes are affected by these emergency budgetary measures and will work closely with colleagues in the Foreign Commonwealth and Development Office and with colleagues on the cross-party group for UN Sustainable Goals, which I used to co-chair.