International Aid: Treasury Update

Andrea Leadsom Excerpts

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Keir Starmer]

Yes and yes. It was not ambivalent in the manifestos and it was not conditional; it was clear.

On the first part of the argument—the national interest—British aid saves lives, it builds a more secure world, and it promotes democracy and British soft power. For the last 20 years, that has been the political consensus across this House. Tony Blair and Gordon Brown first set the goal of the UK reaching the 0.7% target—[Interruption.] I am making a speech to the House and for the House. David Cameron and the right hon. Member for Maidenhead made it a reality, and we acknowledge that in the right way. It has been supported—[Interruption.] The chuntering is all very well, but this has been a cross-party position for 20 years, and successive Prime Ministers have kept to the commitment. Every other living Prime Minister thinks this is wrong; there is only one Prime Minister who is prepared to do this, and he is sitting there, on the Front Bench. I acknowledge what those on the Benches opposite did in relation to this—the previous Prime Minister is sitting opposite. I am openly acknowledging that, and it has been supported by all parties, and rightly so. As the sixth richest country in the world, Britain has a moral obligation to help the world’s poorest, and our aid budget has done that with fantastic results.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

Will the right hon. and learned Gentleman give way?

[Keir Starmer]

I will in a moment.

This has been providing education for women and girls; fighting poverty; providing sanitation, healthcare and vaccines; building resilience and infrastructure; and doing incredible post-conflict and reconstruction work, where I think Britain does a better job than anyone else, so it has real results. Let us be clear what these cuts would mean: 1 million girls losing out on schooling; nearly 3 million women and children going without life-saving nutrition; 5.6 million children left unvaccinated; an estimated 100,000 deaths worldwide. [Interruption] The Prime Minister says “Rubbish”; that is the human toll of the choices the Government are making, and it is not rubbish.

--- Later in debate ---

[Keir Starmer]

I am aware of that, and it exposes the false economy argument in the Prime Minister’s case.

This cut will also reduce UK influence just when it is needed most, and of course it risks leaving a vacuum that other countries—China and Russia, for example—will fill. At a time when Britain will host COP26 and has hosted the G7 we should be using every means at our disposal to create a fairer and safer world, but we are the only G7 country that is cutting our aid budget—the only G7 country. That is not the vision of global Britain that those of us on the Labour Benches want to see, and I do not think it is the vision of global Britain that many on the Benches opposite want to see either.

[Dame Andrea Leadsom]

All of us in this House long to see our aid commitments re-established at 0.7% of national income, but the Leader of the Opposition will nevertheless appreciate that we continue to be one of the most generous foreign aid donors. He is making a good point about the 0.7%, but can he explain why, in all the Labour years of Labour Government, they averaged 0.36% of national income on overseas aid?

[Keir Starmer]

They doubled it, actually.

Let me turn to my second point, which has already been debated: the economic argument behind the Government’s position. The Prime Minister and Chancellor say that these cuts are unavoidable because of the pandemic and the economic consequences we now find ourselves in, but the whole point of the 0.7% target is that it is relative to the UK’s economic success or challenges: it rises when we grow and falls when we experience economic shock like the pandemic. Nobody in this House is arguing for overseas aid to be maintained at the pre-pandemic level during the downturn in strict terms. We all recognise that a contracting economy means a relative contraction in our aid budget, but the Chancellor and Prime Minister are asking the House to agree to go beyond that, to impose a new target of 0.5% and to create entirely new criteria for ever returning to 0.7%. In effect, the Chancellor is proposing a double lock against reverting to 0.7%. The written ministerial statement makes it clear that Britain will go back to 0.7% only when public debt is falling as a percentage of GDP and there is a “current budget surplus”.

--- Later in debate ---

[Patrick Grady (Glasgow North) (SNP)]

The Prime Minister brought a very sombre tone to the Dispatch Box this afternoon, trying to convince us that this decision was all a regrettable consequence of the economic impact of the pandemic, but that rings hollow when we remember the glee with which he stood at the Dispatch Box this time last year and announced the abolition of the Department for International Development, when he described aid and DFID as a

“giant cashpoint in the sky”.—[Official Report, 16 June 2020; Vol. 677, c. 670.]

We also remember that, as Foreign Secretary, he quoted Kipling in a Buddhist temple in Myanmar and, when he was a journalist, used the language of “piccaninnies” and “watermelon smiles”.

This is a Prime Minister and a Government who know little and care less about the struggles of poverty, whether at home or abroad, or about the life-saving, life-changing difference that aid can and does make around the world. A bit like the English votes for English laws Standing Orders that we will be debating later today, the aid budget to them is just another part of David Cameron’s legacy that they seem so keen to bury. I think the Prime Minister likes the fact that he is the only living Prime Minister who supports the cut in the aid budget. It is part of this year zero, hard rain approach to the UK consensus that has existed for so long.

That consensus saw every single Member of this House, as has been said, elected on the commitment of 0.7%. It is a consensus that has existed for 20 years, with a target that has been met consistently since 2013. The 0.5% figure is completely arbitrary; 0.7% was calculated by international organisations when it was set in the 1970s. As I have said, the 0.5% figure is completely arbitrary, and we have not heard why it is not 0.4%, 0.6% or 0.3%. It is simply that it sounds good and sounds as though the Government are taking decisive action. That seems to be their attitude to so many aspects of government just now, never mind the impact or the feasibility.

[Dame Andrea Leadsom]

The hon. Member is making some very serious points, but does he accept the fact that the UK has set out 0.7% in law? Many countries around the world also commit to 0.7%, but always fall short and do not bother to have a discussion about it.

[Patrick Grady]

But the UK is now resiling from that. The Government are resiling from it, and they will not even give us a legally binding vote on the decision to resile from the commitment agreed by the entire House. What we consistently hear from the Dispatch Box is about being a soft power superpower and about global leadership, and in a year when the UK should be taking the lead, it is taking a step backwards.

Of course, the decision to cut aid has been shown to be doubly problematic because aid was due to fall anyway. GNI has been falling as a result of the pandemic-related economic contraction anyway, and there would have been tough decisions and funding squeezes, but those would have been predictable and manageable. There is this notion that it is all being paid for by debt, but we could say that about all kinds of aspects of Government spending. All Governments around the world run debts and deficits, and they invest for the future. Aid is an investment in all of our collective futures, but what is happening now in real time is that drastic, sweeping cuts have already been made to get down to this completely arbitrary target of 0.5%, and these will be massively difficult to undo.

Despite today’s attempt to bounce the House into a decision and all these other shenanigans, the Government’s own rhetoric does not add up. The Prime Minister repeatedly says that the covid investment they are making is going to be additional. Well, if it is going to be additional, how can the Government spend 0.5%—they must be spending more than 0.5%—and if it is not additional, then what else is going to be cut? It does not make any sense.

I did not get an answer in the last debate about the concerns raised about UK Aid Match. The public have been donating £1 to certain charities in good faith on the basis that the UK Government would match that, but charities such as Mary’s Meals have now been told that this funding will be delayed, and they will be wondering whether it will ever appear at all. Hundreds of constituents in Glasgow North have contacted me about that since the cut was first announced. That speaks to thousands of activists and organisations across the country.

Aid works best when it is stable and predictable in the long term. There will be no undoing some of the damage caused by the UK Government’s cuts. They have been hastily and, in some cases, disastrously implemented. A return to 0.7% as soon as possible will at least mitigate some of that damage. I hope that some of the Tories who have been opposed to the Government’s decision so far will continue to show resilience and vote tonight to restore our aid commitment to our poorest brothers and sisters around the world.