USAID Funding Pause

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Tuesday 10th June 2025

(2 days, 17 hours ago)

Westminster Hall
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Catherine West Portrait The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Catherine West)
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It is a pleasure to serve under your chairship, Mrs Hobhouse, and to have heard such excellent speeches from the hon. Member for Melksham and Devizes (Brian Mathew), my hon. Friend the Member for Norwich North (Alice Macdonald) and others who have direct experience in this important field.

To repeat the words of the Minister for Development in the other place, this is a very difficult time for the development sector. The world is changing and the post-world war two consensus is under significant strain. We face increasingly complex, interconnected and politically charged global issues. As we have heard, cuts to USAID, combined with funding decisions by other donors, including the UK, will have significant implications for tackling global development challenges. We are working closely with partners to understand the impact and provide support.

The right hon. Member for Aldridge-Brownhills (Wendy Morton) mentioned that she has asked lots of questions, which is, of course, part of her job as spokesperson. However, she might want to cast her mind back to the period between February 2020 and December 2021, when she was the Minister and got the axe out so quickly that there were in-year funding cuts, job losses and an enormous tremor across the sector. I remember many people coming to see me, as the Opposition spokesperson, and saying, “Could the Government not at least take a considered view over time, not rush to do these things and try to have some respect for the sector?”

Wendy Morton Portrait Wendy Morton
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In my comments, I was appreciative of the challenges that any Government faces in such circumstances. However, I gently remind the Minister that this is now happening on her Government’s watch and, as she rightly acknowledges, my job as the shadow development Minister is to keep asking those questions. What the sector needs is certainty, and the Government clearly have not learned that.

Catherine West Portrait Catherine West
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On the tone of the speech by the Liberal Democrat spokesperson, the hon. Member for Esher and Walton (Monica Harding), we should also remember the 2010 to 2015 period, when cut after cut in public funding inflicted quite a deal of pain on the recipients of that public funding.

Monica Harding Portrait Monica Harding
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Does the Minister agree, though, that after receiving a note from the Labour Government saying there was no more money left, the coalition Government increased the aid budget to 0.7%? In fact, 0.7% of gross national income has been in the Lib Dem manifesto since 1970. When we were in government, we delivered it; when we left government, it was cut.

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Catherine West Portrait Catherine West
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I think the hon. Lady may have a good debating point in this Chamber, but the result of the 2015 election says it all.

David Taylor Portrait David Taylor
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I want to add to what the Minister is saying. The point is that, yes, the coalition Government did protect the aid budget, but by cutting public services in this country to the core, they undermined public trust in Government. That meant that lots of people faced need, and it led to increasing calls of, “Charity begins at home; why are we spending this money abroad?” If we had kept the settlement that we had under the last Labour Government, whereby we invested in public services at home and abroad, we would not have ended up in this mess.

Catherine West Portrait Catherine West
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I think we are all making the important point that since the 2008 global crash, our economy has never really been the same and we have struggled to make progress, whether on wages and living conditions at home or on completely fulfilling our responsibilities abroad. As one says, we are where we are. General reductions in public spending are part of a broader set of pressures facing the international development system.

Support for multilateralism has been wavering for some time, as my hon. Friend the Member for Hemel Hempstead (David Taylor) said, amid shifting geopolitical priorities. Many of our partners feel that the current system no longer responds to their needs. The combined impact of these two factors is significant, and let me briefly expand on them.

First, on the disbanding of USAID, it is inevitable that significant cuts will have lasting implications for how we tackle global development challenges. I cannot say how pleased I am that the International Development Committee will go to the USA to have face-to-face dialogue with friends about how we can save the most important elements of our programmes. Given the knowledge base of the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), who is well known for his work on global health, HIV/AIDS, Gavi, Unitaid and the Global Fund, he will be able to make pertinent arguments with friends there. I would also ask the hon. Member for Strangford (Jim Shannon), with his connections in the faith sector, to impress on all the different faith-based charities the need to continue their important work where they can and to have many people doubling their tithe.

Jim Shannon Portrait Jim Shannon
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I have suggested this in the past, because there is a real possibility of doing good things together: those organisations would be keen to work alongside Government through their NGOs, if that was possible. I think I have asked the Minister this before, but I am interested in whether she would by sympathetic to that idea.

Catherine West Portrait Catherine West
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I will certainly pass that idea back to the Minister with responsibility for development, because we always end up having good ideas in Westminster Hall debates.

The US is a key partner, but this is a matter for them. It is their budget. We have a strong relationship with the US that is founded on shared interests and common approaches. Together with our G7 and G20 allies, we carry strong global influence, and we must never stand back from that. That is why we are committed to working with the US and other countries on our shared priorities. We are in regular touch with US counterparts to share advice as they shape their development plans. As in any diplomatic relationship, we will not always align with the US, and we may want to focus on other things. That is normal. We will engage in a pragmatic way to understand concerns and find a way forward.

Many Members have mentioned the multilateral system. No single country can solve the global development challenges alone, and I thank my hon. Friend the Member for Norwich North for pointing that out as well as the importance of working with international financial institutions, which she learned through her experience before coming to this place. This is where we have to be much more innovative. We cannot just sit around the table and nod through reports; we have to put some life back into those systems so that we can enable the finance and the technical aid, which the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale also mentioned. Through technical assistance and international financial organisations, we are not powerless —we can use them. There is an opportunity to rebuild trust, rebalance power and design a more effective, inclusive, co-operative and future-proof architecture.

The Liberal Democrat spokesperson, the hon. Member for Esher and Walton, mentioned the 1970s. We must not forget, at a moment like this, what the development sector has done. So many more people lived in abject poverty before, and there is now a growing middle class, and much of that is down to really bright people, employed by NGOs in those countries, who are leading movements and improving the economy. Under 10% of people are now living at the poorest level, which used to be on $1 a day. The development Minister will know the statistic, but it has reduced to 9%. This debate, as well as lots of other evidence, is going into the spending review so that decisions can be made. We know that a preponderance of those people live in sub-Saharan Africa, and that is being taken into account.

Alice Macdonald Portrait Alice Macdonald
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The other concentration of people living in extreme poverty is in conflict-affected states. As much as this is about providing humanitarian aid once disaster happens, we also have to invest in prevention in the first place. Would the Minister reflect on the importance of conflict prevention in our aid efforts?

Catherine West Portrait Catherine West
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Indeed. This is about not just aid, but the women, peace and security programme, which I spoke at in Manila a couple of months back, and the important work that we do in Colombia, Mindanao in the Philippines and other places to ensure that women have a voice. I am very aware that many Members in this Chamber understand the importance of empowering women to solve the difficulties relating to how communities live abroad in very poor or conflict-affected areas. The Government will continue their commitment to supporting women and girls by being a champion for them across the world—by showing up and making our voice heard. Quite a few international partners have mentioned to me at conferences that I am the first UK Minister they have seen for years. This is partly about our diplomatic presence, including at ministerial level, so that we can be confident champions of women and girls in our multilateral work, and improve the quality of mainstreaming in our growth, climate, health and humanitarian programmes.

Wendy Morton Portrait Wendy Morton
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Can the Minister confirm that the Government are still committed to ensuring that half our development budget goes to women and girls?

Catherine West Portrait Catherine West
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It would be unwise of me, the day before the spending review, to give an exact figure. However, I reassure the right hon. Member that we will give extra-special attention to working with women’s organisations, particularly local organisations in crisis and climate-affected contexts, which I know are close to the heart of my hon. Friend the Member for Norwich North. We will mainstream gender equality to put women and girls at the heart of everything we do.

We now have a champion for women, Baroness Harman. Some Members may remember her from this House, and she is not to be taken lightly. She will go over our proposals with a fine-toothed comb and support the work we do to help women political and economic leaders, like her, and activists in their home countries—those who have real legitimacy with their populations—to ensure that development and humanitarian programmes integrate women’s perspectives and needs, and address the barriers that they face. That is as relevant in conflict and peacebuilding as it is in education.

I will make some further brief points on global health. We will continue to invest in multilateral funds such as Gavi and the Global Fund. I know many here are champions of that work. There was an emphasis in this debate on child nutrition, which is paramount.

Moving on to the question of climate and nature, we will tackle climate change by backing investments that help countries to grow green and resilient economies. When we consider the COP meetings abroad, we see, following disasters and emergencies, that there is so much poverty and so much aid has to be spent. We must work harder through our financial institutions to bring forward prevention schemes for very climate-affected areas. Pakistan and the speech that Sherry Rehman made at COP two years ago come to mind, as do the Pacific islands—an area that my brief covers—which are literally under threat of sinking. Those are the sorts of areas where climate interventions are crucial and where climate will continue to be a very important point.

Members have mentioned some of the real hotspots we are looking at at the moment, including Yemen, Lebanon, Afghanistan and Myanmar, and I will briefly emphasise the importance of our humanitarian response. Colleagues will remember that following the dreadful earthquake in Sagaing in Myanmar, through support from the UK public together with the Disasters Emergency Committee match-funding UK citizens’ contributions, the Foreign, Commonwealth and Development Office was able to provide £25 million in total, equivalent to China, to those who were suffering. The International Development Committee has heard from Dr Sasa and others from outside Myanmar who are championing proper political reform, so that less aid will eventually be required once the political system gets up and running there.

Afghanistan has been mentioned as a crucial area, particularly for women and girls. I want briefly to talk up the importance of the BBC World Service and its Bitesize learning modules, through which women can listen to the radio and learn English and other basic subjects. That came out of covid, and it is an example of excellence. When a young mother with perhaps eight or nine children is washing their clothes, she can listen to English and hope one day to be able to use that to empower her and her family, and also hopefully to have an improved future. Those sorts of interventions are incredibly important.

The UK remains committed to playing a leading role in international development. We will work with our partners, including the US and the global south. I thank all the Members who have spoken in this debate. Although my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) did sound very evangelical in his speech, I liked it. I think it is important that we do have a moral heart in a lot of the work we do. We know that working with the US and the global south to reimagine a development system that meets our shared priorities, builds new partnerships, and harnesses the power of trade, AI, technology and private capital will not be quick or easy. But by working together, we can build a system that is inclusive, effective and gives voice to all who have a stake in it.