Low-income Countries: Debt Cancellation

Andrew Rosindell Excerpts

Thursday 6th February 2025 Westminster Hall

[Andrew Rosindell (Romford) (Con)]

It is a pleasure to serve under your chairmanship, Ms McVey, for the first time as a shadow Minister.

I commend the hon. Member for Southgate and Wood Green (Bambos Charalambous) for securing this debate. Constituency names have changed; I have always known him as the hon. Member for Enfield Southgate. He spoke with real passion today, and he brings with him knowledge and expertise about a topic that we must all focus on more carefully. It is a sensitive issue, and we must ensure we get it right. It should not be a party political issue; we should be looking for solutions. I think that today’s debate has contributed to that important discussion, so I thank him for securing it.

As has been mentioned, Britain is a nation that has always been known for its Christian compassion. At the same time, we have always advocated the principle of helping others to help themselves as the best pathway to providing long-term sustainability, particularly for developing nations, many of which have been mentioned in the debate.

So many contributions have been very powerful, particularly that of the hon. Member for Loughborough (Dr Sandher), who spoke about Somaliland. I met representatives from Somaliland recently. It is so important that we use our knowledge and expertise to help developing countries to develop the type of economy that will generate wealth and prosperity. Having such debts around their necks will not help them to get out of their problems and become prosperous in the future. The hon. Gentleman drew on his expertise, and I commend him for it.

Others have spoken about issues such as colonialism. To be frank, I am not convinced that the hon. Member for Clapham and Brixton Hill (Bell Ribeiro-Addy) should focus on colonialism. There are other, more unifying things that we should talk about. Britain can lead the way in this if we get things right, but talking about Britain’s past wrongs—they are subjective, and there are a lot of good things that Britain has done—and tying everything to colonialism is a divisive route to go down. Let us look at solutions and advocate ideas that offer a way forward, rather than creating political division.

[Bell Ribeiro-Addy]

This is not necessarily a divisive issue. When we ask those who are suffering the most from these matters, we find that they believe that it is difficult to move forward because of some of the wrongs that have been done to them in the past. It is simply about recognition and looking at ways to tackle this issue, and at how we can deliver recompense for the wrong that we have done. It is not about being divisive; it is just about accepting what went wrong and understanding that we have a duty to make it right.

[Esther McVey (in the Chair)]

Order. I remind hon. Members that this debate is about debt cancellation for low-income countries.

[Andrew Rosindell]

I respect the hon. Member’s point, but she did say that we should pay what we owe. All kinds of arguments can be put forward about what we owe, but it is a matter of opinion. Today we should bring unity and look for solutions, rather than making this a political issue. We can achieve more for developing countries if we work together, rather than looking at where things have gone wrong or right in history and at who may owe what, depending on what is going on in the world today. I do not think that will get us very far, so we should move on from that and focus on how we restructure the repayment of debt, and how we can develop a better system globally to deal with this issue, rather than looking too far back into history.

It has been clear to me, right from when I stood for Parliament for the first time, that this issue needs to be addressed. That has been confirmed by the passion that hon. Members have shown in today’s debate. Debt relief deserves serious consideration, and the Opposition recognise that. Unsustainable debt burdens can be huge and significant impediments to economic development and growth, trapping nations in a cycle of poverty. However, I believe that we must approach this matter in a responsible way, with both caution and pragmatism.

If pursued, debt relief must be conditional and tied to a strong policy of fiscal responsibility measures, so I hope the Minister will provide assurances that any recipient countries would be expected to implement sound economic policies, tackle corruption and take steps to prevent future over-borrowing. I do not think the Minister can disagree that without those safeguards, we risk creating a system in which there is financial mismanagement in perpetuity. We should focus on rewarding the expense of responsible governance. Making the hard-pressed British taxpayer foot the bill is not acceptable to most of our constituents, and we need solutions. We need to solve these problems and not see this as a one-way street.

If the United Kingdom taxpayer’s money is involved, I want the Government to tell us how they will ensure that such relief also serves the interests of the British people. During these difficult economic times, we must justify every single penny spent by the Government and always be mindful that it is our constituents’ money, not the Government’s. Debt relief must become not an open-ended commitment, but a strategic tool that strengthens bilateral ties and ensures geopolitical stability.

I hope the Minister can tell us how the Government intend to prioritise sustainable development, and what mechanisms are in place to monitor that. I also hope she will agree that the focus should be not on perpetual aid or blanket debt forgiveness, but on fostering economic self-sufficiency. That is the only sustainable way forward. We must also consider how the United Kingdom can play a meaningful part in helping low-income countries to develop their domestic industries, improve resource management and reduce their reliance on foreign debt. Without those structural changes, would debt relief simply serve as a temporary fix, or would she prefer to have a system that offers a sustainable solution? That is what the Opposition want.

[Jim Shannon]

I would never wish to be anything other than supportive of what the hon. Gentleman says, but everyone who has spoken so far has mentioned the charities and groups that contribute and sometimes fill the gap. May I ask, respectfully, if some recognition could be given to those groups?

[Andrew Rosindell]

The hon. Member touched on this in his speech earlier, as did the hon. Member for Melksham and Devizes. That is another new constituency name, and I think it includes Chippenham. Is that part of the hon. Gentleman’s constituency?

[Brian Mathew]

No, but it is in Wiltshire.

[Andrew Rosindell]

It is in Wiltshire, so it is in that part of the world—a great part of the world.

Many churches and faith organisations, not just Christian, do a huge amount in all our constituencies to help raise funds to alleviate poverty. In my constituency, churches and the Christian organisations take the lead in this, and it is a wonderful thing. If we are to alleviate world poverty and deal with the restructuring of international debt, it has to be a collective thing. It is not just about Governments; other sectors must be involved in these discussions. We must all give credit to the charities, church organisations, faith groups and other parts of the voluntary sector that raise money week in, week out, to help to alleviate poverty and for disaster relief in different parts of the world. As Members of Parliament, we all know that from our constituencies. I commend the hon. Member for Strangford (Jim Shannon) and all Members for the charities, churches and organisations in their constituencies that do that incredible work.

We simply cannot ignore the geopolitical dimension. The belt and road initiative from the People’s Republic of China has created debt dependency, threatening many sovereign nations around the world. Will the Minister tell the House how the Government intend to counterbalance Beijing’s influence and provide a credible alternative to Chinese financing, which is of great concern? Will debt relief and the belt and road initiative feature in the Government’s China audit? Can she also confirm that any UK-backed debt restructuring would promote transparency, fair economic partnerships and long-term stability?

Beyond individual cases, will the Government tell us how they plan to advocate for more responsible lending and borrowing practices that ensure that relief leads to lasting improvements rather than repeated crisis? Does the Minister also accept that we should be looking beyond debt cancellation and focusing on investment incentives, infrastructure partnerships and trade agreements that enable these countries to generate revenue and pay their debts? How will the Government ensure that their approach fosters economic growth rather than continued reliance on external assistance?

It is crucial that any policy pursued by His Majesty’s Government is effective and responsible. Debt relief can be a force for good when structured correctly, but it must be part of a broader strategy that promotes economic resilience, accountability and sustainable development. The Government must navigate these challenges while always ensuring that British interests remain protected.