International Development Strategy

Lord Purvis of Tweed Excerpts

Monday 6th June 2022 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

My noble friend makes an important point. As he says, the majority of overseas territories do not qualify for ODA. However, I and the Government think there is a problem in the way in which the rules are assessed and those assessments are made. As he notes, small island states are particularly vulnerable to extreme weather events and can be plunged from prosperity into poverty literally overnight. We have taken up this issue with our international partners, and I hope we will see movement on the criteria soon. In the meantime, yes, our support for the OTs remains. We have increased our funding for work in the overseas territories, and I am very keen for us to continue to do so.

[Lord Purvis of Tweed (LD)]

My Lords, on 12 July last year the Chancellor told the House of Commons that

“the Government commit to spending 0.7% of GNI on ODA when the independent Office for Budget Responsibility’s fiscal forecast confirms that, on a sustainable basis, we are not borrowing for day-to-day spending and underlying debt is falling”.—[Official Report, Commons, 12/7/21; col. 3WS.]

In March the Economic and Fiscal Outlook said the following of ODA, on page 129:

“At this forecast, the current budget reaches surplus and underlying debt falls from 2023-24.”


That is just six months away. Why are the Government not preparing for restoration as, according to the OBR, we have met the fiscal tests?

[Lord Goldsmith of Richmond Park (Con)]

It is worth saying that the UK remains one of the largest donors globally. We spent more than £11 billion in aid around the world in 2021, and the Government have committed, as the noble Lord acknowledged, to returning to 0.7% as soon as we can. That is something that I know the whole House, on both sides, supports. In various debates the noble Lord has made the point that in jumping from 0.5% to 0.7% and having the opposite of a cliff edge—a steep mountain to climb in a short period of time—there is a risk of not investing that additional money wisely. This is a very live discussion in the FCDO, and one that I am taking part in. I am not yet in a position to go into detail about what that means.