Official Development Assistance and the British Council

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Wednesday 30th June 2021

(2 years, 9 months ago)

Commons Chamber
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Karen Bradley Portrait Karen Bradley
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I absolutely agree; that is my point. If our ambassadors are responsible merely for diplomatic relations, that is one thing, but if they are to be responsible for making decisions around international development, they should also be responsible for decisions around defence and trade, because it is all part of one policy area. It is actually much healthier for government—[Interruption.] The Minister looks like he wants me to give way. Does he wish me to sit down? I will.

James Duddridge Portrait James Duddridge
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I cannot contain myself. Ambassadors are responsible for the whole of Her Majesty’s Government.

Karen Bradley Portrait Karen Bradley
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My hon. Friend, who is one of my oldest friends in this place, makes a very important point. However, the hon. Member for Rotherham also makes the point that if ambassadors are having to make decisions on cutting programmes at the same time as developing diplomatic relations and representing every bit of HMG, that will make their jobs that much harder.

My second point is about the 0.7%. I listened to my hon. Friend, and I have great sympathy with the fact that he feels that he is in a den of people who disagree with him. I do not actually disagree with him that much. I think he would be surprised to discover that I accept that we are in the most extraordinary times. I do not like anything about this pandemic: I do not like the fact that this House is empty, I do not like the fact that I cannot see my loved ones, and I really do not like the fact that we do not have the money that we should have and would like to have. I would much, much rather we did have that money, but I accept that we do not.

However, the programmes and the organisations that rely on British aid need to know that the money will be restored next year. I have spent significant time talking to the Global Fund to End Modern Slavery. The programmes it will need to cut if it does not have certainty about spending next year will really damage the work that it and the organisations that it supports have spent years doing. The problem is that someone else will move in and take that space. Someone else that we may disagree with will start to move in those circles and take on projects, and years and years of building up relationships will be wasted. It is all part of soft power: the power that being a permanent member of the Security Council gives us; the power that being a country that meets our NATO commitments gives us; and the power that meeting the 0.7% commitment gives us. It may be an arbitrary target and there may be a debate to be had about whether it is the right target, but that is not what we are debating today. We are debating whether we meet the manifesto commitment and whether we are going to return to that manifesto commitment. I ask my hon. Friend, who, as I say, is one of the greatest men that I know—he has whipped me and then I have whipped him in the past—please to confirm that he will return to the 0.7% commitment next year so that we can hold our heads up high in the world. It is imperative that, if the Government cannot give that commitment, this House has a vote on the matter.

A small amount of money spent at source makes an enormous amount of difference to the people at home. We have heard talk about whether we choose between people at home or people elsewhere. There is no such choice. The migrants crossing the channel from Calais are getting on those unsafe boats because organised criminals have told them that there is a route to get to the United Kingdom if they do so. In spending overseas development money, I suspect that not as much money needs to be spent at source to try to deal with that organised criminality as we are spending trying to send those dinghies back. I say to my hon. Friend: let us think about how we can make sure that we spend that money in the right places and do what we need to do.

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Edward Leigh Portrait Sir Edward Leigh
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The UK does have a role, and I fully accept the point about the Commonwealth. We have heard that we should prioritise the Commonwealth, but as we have also heard, where are these cuts falling? On the Commonwealth. But we cannot just direct our aid to the Commonwealth; we have to direct it where it is most needed.

On the Thatcherite point—and this is not the humanitarian point, because many people have made the humanitarian point, which I associate myself with—I remember, in my first Parliament, listening to Enoch Powell. He sat over there on the Opposition Back Bench. In fact, my first rebellion was to force the Government into requiring workplace trade unions to hold postal ballots, while the Minister defended workplace ballots; but I leave that to one side.

Now, what would Enoch Powell have said on this subject? He would not have liked the 0.7%, but he would have said it was ridiculous to have an arbitrary limit of 0.7%, to reduce it to another arbitrary limit of 0.5% and then to promise to increase it back to 0.7%. As he would have said—I cannot do the Birmingham accent, unlike my right hon. Friend the Member for Sutton Coldfield—“It is a logical absurdity. It is a nonsense built on stilts. It makes no sense” that all these civil servants, in the middle of a global pandemic, are running around cutting all these programmes, and next year, if we believe the Government—and of course the Government would never tell an untruth to the House, would they, so this is only a temporary cut—all these programmes, after this pandemic, are going to be restored. [Interruption.] The Minister is shaking his head. So are they not going to be restored?

James Duddridge Portrait The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (James Duddridge)
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We will return to 0.7%, and we will do that in the most effective way. I would hope to build back better.

Edward Leigh Portrait Sir Edward Leigh
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When, we ask—what does “temporary” mean? Surely temporary only means temporary.

Being helpful, I want to give the Government a way out. We have the Budget coming up before the end of the year. Why cannot the Chancellor of the Exchequer address this issue and explain how he is going to restore the 0.7%? We live in a parliamentary democracy. I will leave aside the point about the manifesto. I know that circumstances change, and I know that we are strapped for cash, but I follow the point that this is a relatively small amount of the total budget. However, the Minister has now confirmed that we are going to return to 0.7%.

Here is one way out—I am trying to help the Prime Minister. When it comes to vaccines or tropical medicine, where there is a real problem, he could, week by week or month by month, release more money for a particular programme in addition to the 0.5%. He would get enormous public credit, there would be good publicity for him, and gradually we could restore what is being cut.

The Chancellor of the Exchequer could then announce, in the Budget, “We have now come out of the pandemic, the country is fully vaccinated, the economy is growing very well again, and I can now increase this back to 0.7%.” Or he could do the honest thing, if that is not his view, and say, “I believe this 0.7% target in a year is arbitrary; I think it should be phased in over three years,” or “I believe that we should preserve it in real terms.” He can make any argument he wants and we will listen to it, and then we should have a vote on it and either approve what he suggests or deny him.

Surely, what is completely unacceptable in a parliamentary democracy is for a Government to make a manifesto commitment, to make a cut and say it is temporary, but to avoid any vote—to prevaricate—just because they think they might lose the vote and, worse, just because they think it is popular. Is it so popular? Is it the right thing to do, or should we not do the right thing?

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James Duddridge Portrait The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (James Duddridge)
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This has been a passionate and informed debate with more than 38 Members speaking. I am grateful to the hon. Member for Rotherham (Sarah Champion) for introducing the debate and for her work with the Backbench Business Committee and the Liaison Committee to attach all the right documents. I know that many Members of the House are passionate about development and passionate about 0.7%—myself included, which Members may find surprising, given the defence that I will go on to make. I think we are all extremely proud of the UK’s leadership historically on development and on everything we have done.

I started my career as a lending banker in the developing world. I have done two tours of duty, if we can call them that, on the DFID Committee, coming back for more. I have served on these issues in a non-integrated FCO across a number of areas, and in an integrated FCO-DFID, where I had an office at one end of Whitehall to do part of the job and another at the other end of Whitehall to do the other part of the job, and spent most of the time wandering between the two or in the House of Commons for votes. Now I have seen the FCDO together, and it is a model I prefer, because I can draw on all the issues and complexity and make the tough decisions. They are incredibly tough and serious decisions that are not taken lightly and take an immense amount of time. A number of colleagues mentioned the time process being too small or too quick. None of the timescales I saw, or the flippancy with which they indicated decisions were taken, reflects the way we took decisions in Whitehall, let alone in-country and thematically.

The UK, looking back, has met the target of 0.7% of GNI on ODA every year since 2013, so it is with great caution that we fall short of that target now, but no other country can match that record. I am proud of that. I know there has been some debate over whether 0.7% or 0.5% is right, what is ODA-able or what is DAC-able, but the Government are committed to getting back to 0.7%. There has been debate over how many times one can have hypothecated expenditure or a percentage limit. The default, clearly, should be not to run everything on a percentage basis, but we have made a commitment that helps to encourage our compatriots around the world to get to that point. We should be proud of the fact that in the G7, comparing GNI, we are in the top three. We are doing much better than our American colleagues, by way of example.

Right at the outset, before I get into the meat of my speech, I would like to talk about when more information is on the way. There has been some criticism of the Government for not giving more information, although recognition that it is good that we are now debating estimates on estimates day. The annual report for the integrated Department will come out in September. That will have all the financial information up to the end of March. In addition, it will give a forward look to 2021-22. I was a little disappointed that the hon. Member for Rotherham felt that we had not given her all the information in her Committee. I am more than happy to come to the Committee again. I know the Foreign Secretary and a number of other Ministers have been at the Committee.

Sarah Champion Portrait Sarah Champion
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It is always a delight to have the Minister at the Committee, but what we are actually looking for is the hard data. We want a proper breakdown of where the money is being spent: the countries, the projects, the priorities. Can he give me assurances that the document coming out in September will have that very granular detail? We are all charged to scrutinise it, but we are unable to do that with the data that is being given.

James Duddridge Portrait James Duddridge
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I will look over that document carefully. Clearly, I am not writing it myself. I always find the annual report to be very fulsome and would intend that it is fulsome, if not more fulsome, given the transition of the two Departments. I am very open to that.

We should also remember the numbers. A couple of Members referred to £4.5 billion as a rounding error. I understand the point they are making in relation to the deficit of £300 billion that we are running. It is a smaller number, but it is a massively significant number.

There have been a number of comments on polling. We are not led by polling. I was unaware of some of the polling that Members have talked about. Governments should not be led by polling, but I am conscious that as Members of Parliament we should be in touch with our constituents. A number of Members have said unpopular things on both sides of the argument, although surprisingly one said we should not be populist. I thought that was rather electorally successful, but people on both sides of the argument described their points of view as being populist. We are ahead of the US, Japan, Canada and Italy, so we should hold our head high, although I appreciate that most speakers in the House want us to do even more.

As Minister for Africa, I am glad to say we will be spending over half our bilateral aid budget in the African continent, focusing on key issues. Rather than going to just Africa, I thought it would be useful to explain the process the Foreign Secretary and his Ministers took. The Foreign Secretary outlined seven priorities to the House on 26 November. Underlying all of them—or overarching them—is the aim of reducing poverty. First, there is a focus on climate and biodiversity, particularly because of COP26. There was a focus on a flagship target of £11.6 billion of international aid on international climate finance. Our second priority is global health security, for obvious reasons, given the pandemic. A lot of our programmes have been repurposed towards covid, although we focus on a number of other areas, preventable deaths of mothers, newborn babies and children—

Patrick Grady Portrait Patrick Grady
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Will the Minister give way?

James Duddridge Portrait James Duddridge
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I will, but I am not going to be very generous in giving way, because I am conscious of the time.

Patrick Grady Portrait Patrick Grady
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I understand that. The Minister was bringing us back to the point I made in my speech about the Government’s expenditure on covid-related activities. The Prime Minister has said that some of the vaccine donations and so on are additional to current aid flows. If the Minister cannot answer at the Dispatch Box now, I would appreciate a detailed response on exactly how money or in-kind support that is being provided to tackle covid in developing countries is to be accounted for. Will it be counted as ODA towards the target or not?

James Duddridge Portrait James Duddridge
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The early announcements were part of existing ODA—they are repurposing. The 100 million doses are classified as ODA and will be in addition to the £10 billion ODA point that we had. So the most recent money is additionality, although my right hon. Friend the Member for Wokingham (John Redwood) made the strong point that there are a lot of areas that we do not count, partly because of the rules.

My hon. Friend the Member for Mid Derbyshire (Mrs Latham) talked of girls’ education, and we are increasing our pledge to the Global Partnership for Education by 15%, to £430 million, which is our largest pledge ever. Our G7 partners promised £2.7 billion to this cause, and the Prime Minister is hosting the global education summit with Kenyatta here in the UK in July.

Our fourth priority is humanitarian preparedness and response, where we will spend more than £900 million, although my opposite number, the hon. Member for Cardiff South and Penarth (Stephen Doughty) rightly raises concerns about places such as Ethiopia and working out where we spend the money. Yes, we should get humanitarian access and we need to deliver that access—I made reference to that in an earlier debate in this place —but bringing peace and security to that country is the most critical thing, which helps the fusion with diplomacy.

James Duddridge Portrait James Duddridge
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I am not going to give way yet, but I will come back to the hon. Gentleman if there is time.

Our fifth priority was science and technology. The sixth one was open societies and conflict resolution, which drives some of these problems. All too often we spend our money on problems that could have been solved early on. The final priority is economic development and growing GDP per capita in the developing world so that they pay tax and get functioning systems as we would have. In that light, we are supporting the continental free trade area, which will drive growth in countries, and we are expanding our diplomatic network.

My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), who chairs the Foreign Affairs Committee, mentioned Niger, Chad and Djibouti, all of which I will be hoping to visit in the near future, and a number of people mentioned the large number of multilateral bodies we are and will continue to be pre-eminent in.

The British Council is the second leg of this debate. We are strongly committed to the British Council. We have allocated more than £600 million since the pandemic to secure its future, which includes a 27% increase on funding this year. I know hon. Members wanted more, but in the context of an aid cut the British Council has done incredibly well out of the settlement, because of the value people see in it—we have seen that across the board.

Let me address some more specific comments. My right hon. Friend the Member for Maidenhead (Mrs May) talked about the linkages. One thing an integrated Department allows is for us to look at the linkages between modern slavery and girls’ education, which is the example she chose. She criticised us for operating in silos, but, again, bringing together the Departments has helped. A number of Members expressed concerns about a loss of expertise; actually, changes to the total operating costs ratio—a bit of a technicality—mean that we can do more in-house, which should help.

An hon. Member asked about our staff in Abercrombie House; we will be increasing the number of staff in Abercrombie House and in Scotland.

My hon. Friend the Member for Tonbridge and Malling criticised us for making admirals ambassadors and honourable consuls captains. I get his point, but we are not merging with the Ministry of Defence. I could talk about some of the best people in my team—for example, the director general, Africa was an economist, focused on aid, was an ambassador and is now back here doing a cross-Whitehall job. I could go on with many examples of people across Whitehall.

The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) asked us to support the special drawing rights. I have spoken to the right hon. Gentleman about the matter and I have said openly that we are lobbying for that at World Bank-IMF meetings. We support the recycling of SDRs to the developing world. The right hon. Gentleman also mentioned IDA replenishment, which we support and are working on.

The hon. Member for Oxford West and Abingdon (Layla Moran), who is no longer in her place, mentioned funding for a specific project and felt there would be adverse effects if it was cancelled because of a new variant. I would very much like more information on that from her.

My right hon. Friend the Member for South West Wiltshire (Dr Murrison) is an ex-Minister and clearly understands the dynamics of having to make difficult decisions, particularly in respect of balancing aid issues with education and law and order. He asked about the logistics of COVAX; I would love to draw on his resource, but we are also working with Africa CDC.

My hon. Friend the Member for Rother Valley (Alexander Stafford) offered an equally passionate but slightly different view from that expressed by the hon. Member for Rotherham, but it was good to see them both get praise.

My hon. Friend the Member for North East Derbyshire (Lee Rowley) made a very thoughtful speech that challenged everyone.

As ever, my hon. Friend the Member for Southend West (Sir David Amess) made very good points. Given his penchant for publicity and flair, I have no doubt that he will be on the front page of the Southend Echo tomorrow, not me.

The least said about the speech by my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) the better, really; certain things should stay in private.

My right hon. Friend the Member for Bournemouth East (Mr Ellwood) made a deeply thoughtful speech that he said was from the defence perspective but actually ranged much more widely beyond that.

I heard an impressive speech from my hon. Friend the Member for Bury South (Christian Wakeford), whom I have not heard speak before. He went from 10 minutes to eight minutes to three minutes and back to eight minutes.

I heard my first speech from an Alba Member of Parliament. I noted down initially that the speech from the hon. Member for East Lothian (Kenny MacAskill) was kind, thoughtful and well informed; by the end I put “ranting”. But it was all the better for it and when in future I see his name on the annunciator, I am going to rush into the Chamber.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Let us have the final word from Sarah Champion.