Foreign, Commonwealth and Development Office

Alex Sobel Excerpts

Wednesday 5th March 2025 Commons Chamber

[David Taylor (Hemel Hempstead) (Lab)]

I will start, as many Members have, by recognising the urgent need to increase defence spending. Over recess, I went to Ukraine for a week—it is an existential crisis. If Ukraine falls, I am convinced that the Baltic states will be in Putin’s line of sight too. Like others in this House, I am obviously extremely pained by the decision to partly get there by cutting aid to 0.3%.

Members will know that I spent my career prior to coming to this House in international development. I set up the Labour Campaign for International Development and had the privilege of working for former Prime Minister Gordon Brown, who did such great things to lead on the world stage in this area when he was Prime Minister and Chancellor. I want to offer my expertise to the Government to find a way through this. I recognise that, across the House, and particularly on the Labour Benches, there are other Members who, like me, have expertise in development, and we offer ourselves to the Government to find ways to make the best of this bad situation.

The first point that I want to make is about front-loading multilateral commitments into 2026. We know that the ODA budget will go down to 0.3% of gross national income from 2027. We believe that by front-loading some of our multilateral commitments—to the Global Fund, for example—we can get round the cliff edge and help the largest number of people for the longest possible time. I know that there have already been discussions about the budget potentially going down in 2026. I urge the Government to look at other options so that we can keep aid spending at 0.5% for as long as possible.

My second point refers to the comments made by my hon. Friend the Member for Rotherham (Sarah Champion) about asylum costs. We strongly urge the Government to consider those costs and to reduce as quickly as possible the amount being spent in the UK. Every penny spent in the UK is not being spent helping the most vulnerable. To deliver that, the Government could formally budget for and commit to project reductions in in-donor refugee costs, with any overspends funded from outside the aid budget and any underspends provided to the FCDO as additional ODA resources.

My third point, which I will not talk about for long because I know that my hon. Friend the Member for Kensington and Bayswater (Joe Powell) has done a lot of advocacy on it, relates to the £2.5 billion of Chelsea FC money. The sooner we can get it into Ukraine and humanitarian aid the better, because it should, in theory, free up ODA money for other situations around the world.

My final point is that we now must focus time and effort on alternative forms of ODA spending. My right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), particularly in his role as chair of the MP group on the World Bank, has some fantastic ideas about how we might be able to use things such as special drawing rights. I know that other colleagues are working on debt relief, which could offer alternative sorts of development financing.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

On alternatives, does my hon. Friend agree that it sometimes creates a false dichotomy to separate defence and ODA? In a human security approach, when there are crises such as conflict, famine or pandemics, we can utilise our forces to go in and deliver aid, as well as utilising traditional ODA.

[David Taylor]

My hon. Friend makes an interesting point, which I hope he will get to make in more detail in due course. In the time available to me, I will carry on with a few other suggestions.

Another suggestion relates to British International Investment. I am not here to criticise the work that it is doing, but the point of ODA is first and foremost to help people in extreme poverty. Although admittedly it has improved, BII has a track record over the years of not necessarily focusing on the very poorest in society. For that reason, I think the Government should look at ways of making BII capitalisations additional to the 0.3%.