Prime Minister’s Meeting with Alexander Lebedev

Debate between Liam Byrne and Vicky Ford

Thursday 7th July 2022 Commons Chamber

[Vicky Ford]

Obviously, I was not at the Liaison Committee yesterday. I was, as you may know, Mr Speaker, giving a ministerial statement on fast-tracking the ratification of Finland and Sweden joining NATO, another measure that is absolutely crucial to our safety and security here and, later in the Chamber, ensuring that we passed the funding. On the question, I repeat what I said in my opening words. It is my understanding that the Prime Minister confirmed that he had met Mr Lebedev without officials present and that he subsequently reported those meetings to officials. That is my understanding and that is what I have been told. If that is not an accurate reflection, I apologise. But this is not me misleading; that is what I was told.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

According to intelligence reports that I have seen, a serving FSB officer reported in 2017, “Aleksandr Lebedev is considered by the FSB to be an important asset”. More recently, he has significantly expanded his businesses in occupied Crimea; pleaded with the Kremlin for economic help for occupied Crimea; and was revealed as the indirect owner of a company called Energomash, which supplies the Russian nuclear programme. How is it possible for the Prime Minister to stay in office if he is conspiring with an agent of the Russian state?

[Vicky Ford]

As the right hon. Member knows, I cannot comment on any potential future sanctions that may be introduced, because we never do that in advance. I cannot give any more comment on the particular individual that he is discussing.

The hon. Member for Rhondda (Chris Bryant) asked me to be more clear about what the Prime Minister said at the Liaison Committee. I have just been passed a note: apparently, the Prime Minister says that he thinks he mentioned this meeting to officials. [Interruption.] I am reporting what I have been told.

Strategy for International Development

Debate between Liam Byrne and Vicky Ford

Wednesday 6th July 2022 Commons Chamber

[Vicky Ford]

I will try to address some of the comments. I will come to global health budgets, which my right hon. Friend raised.

The global pandemic was in nobody’s manifesto. We faced the worst economic contraction for more than 300 years. Our borrowing in 2021 was the highest that it has ever been outside wartime. It was a really difficult decision to reduce the ODA spend from 0.7% to 0.5%, but it is a temporary reduction and we are still the third-largest donor in the G7 as a percentage of GNI that we spend. We are committed to returning to 0.7% as soon as the fiscal situation allows, and we have set out the way in which that will be measured.

Looking at the next decade and beyond, the international development strategy recognises that the evolving development landscape is characterised by many major global challenges and shifting geopolitics. For many years, increasing openness, free markets, free trade and shared technology have helped to underpin global development progress, and that is important in being able to make sure that those in the developing world can try to access some of the opportunities we have. However, that whole era of progress has been completely challenged and set back by the new geopolitical context demonstrated by Putin’s illegal, unjustifiable and brutal invasion of Ukraine, which is causing these huge spirals in fertiliser, food and fuel prices.

My hon. Friend the Member for West Worcestershire (Harriett Baldwin) was absolutely spot-on when she spoke about Russian misinformation. It is really important to remind ourselves as well as others that the UK sanctions in place are not preventing exports of Russian grain and fertiliser to third countries. It is Russia’s illegal blockade that is preventing Ukrainian grain from leaving the country, and that is what is hurting global supplies. The economic pain hitting the world’s poorest most acutely is being caused by Putin’s aggression.

The new hon. Member for Tiverton and Honiton (Richard Foord), in his maiden speech, quite rightly spoke about reminding everybody of the importance of the Budapest convention, when Ukraine gave up what I believe was the world’s largest collection of nuclear weapons in return for the promise that Russia, as well as others, would respect its territorial integrity. We absolutely stand by the people of Ukraine in many ways. We are one of the leading bilateral donors. We have committed about £400 million in economic and humanitarian grant support, which is in addition to about £800 million in guarantees on World Bank lending to Ukraine. We are using a lot of guarantees to increase the amount of funding we can make available.

The right hon. Member for Leeds Central (Hilary Benn) asked whether we are adhering to international laws and what constitutes ODA, and I am very pleased to say that we are. The rules are set out by the OECD’s development assistance committee, and the DAC definition of ODA makes it very clear that no military equipment or services are reportable as ODA, so I hope that answers his question.

My hon. Friend the Member for West Worcestershire mentioned the importance of making sure that UK branding is included in what we are doing, so that while we are supporting developing countries, people know that the UK is standing beside them. I absolutely agree with that, and I would also say to Members in this House who care so passionately about international development that it is important that they remind people what good work is done with the money the UK taxpayer spends there.

I have attended the World Bank meeting—we do attend these meetings, and I regularly attend international meetings—and encouraged the World Bank to be giving a clearer message about the support it is giving and reminding those in donor countries how important this is.

[Liam Byrne]

The World Bank has just mobilised $170 billion of emergency response to the current crisis, but the first question everybody I have spoken to in the World Bank over the last year is: why on earth has the UK cut its commitment to the World Bank when we could be using that to mobilise more money in the future?

[Vicky Ford]

I am so glad that the right hon. Member has raised this point because the UK remains one of the top six largest shareholders of the World Bank. We are one of only six countries in the world that has its own voice at the World Bank spring and autumn meetings, and we use that very powerfully. We remain the third largest donor to IDA20 and we remain the fifth largest shareholder. We reduced our donations to IDA, bringing them in line with what we are doing elsewhere in the world through the international development strategy, but we remained the third largest donor. Indeed, the World Bank announced that it would release $170 billion at the spring meetings partly because the UK worked with our partners to say to the World Bank, “We are in unprecedented times and we need an unprecedented package.”

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) raised in his excellent remarks the situation in the horn of Africa, which is absolutely dire. The UK was one of the first to step up. In January, I was in the horn of Africa and announced additional money, which was, as the hon. Member for Dundee West said, especially to help babies, children and feeding mothers. Since then, we have helped to convene an international conference and worked with the UN to have a roundtable that raised another $400 million. We will be putting more than £150 million of humanitarian aid into east Africa this year. To follow up the question from the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) about the World Bank, we have been encouraging it to put some of that $170 billion urgently into the horn of Africa.

[Liam Byrne]

rose—

[Vicky Ford]

I will make some more progress, because I want to answer many other questions.

Major global challenges are threatening the progress made over previous years. We had seen progress, especially in the last decade, but that has reversed in the last two years, which is partly to do with covid and partly to do with climate change. In that context, it is really important that our international development strategy provides a clear framework to enable people and countries to take control of the future.

Yes, a priority of the strategy is to deliver reliable investments through British investment partnerships, building on the UK’s financial expertise and the strength of the City of London. That is a way in which we can help, using Government—taxpayers’— money to bring more money into developing countries. That must be done in a way that also delivers on green priorities and supports countries to grow their economies sustainably. A key aspect of that is helping countries with the lowest incomes to build their trade capacity and infrastructure. That is not about putting all of our funding in the trade basket; it is about looking at ways in which we can harness investment to make a real difference for countries.

For example, I was in Sierra Leone earlier this year—I have visited 14 African countries since I took on this role, and Sierra Leone is one of those that most needs international development assistance—and one project that I saw was a solar microgrid. We have 95 of them going up across the country, and they are helping more than 300,000 people to get access to electricity. That means that kids can do their school work in the evening, that a sole trader can run her business and get herself an income and livelihood and, most importantly, that local services can get access to electricity. In the same town, I visited the women’s health clinic that we helped set up, where we have worked on training for those delivering babies and on bringing in oxygen services, blood bank services and electricity. That has reduced maternal deaths from one in 25—one in 25 women having a baby was dying—to one in 250. Putting infrastructure investment into that microgrid enabled the oxygen services and blood to be kept in the fridge. That helped to save lives and meant that lights were on when women were delivering their babies at night. As all of us who are mothers know, many women choose to have their babies at night—I have gone slightly off my speech.

Another priority is to empower women and girls. We want to tackle the social, economic and political structural barriers that hold them back, and unlock their potential. Indeed, restoring the funding for women and girls has been a key priority for the Foreign Secretary. I cannot put back the money that was not restored last year, so, in answer to the hon. Member for Putney (Fleur Anderson), the funding is being restored going forward, and it does include areas such as sexual and reproductive health and rights. I believe that that is absolutely central to women’s and girls’ fundamental right to have control over their lives and bodies.

--- Later in debate ---

[Vicky Ford]

Let me try to address hon. Members’ questions first, because I have only another few minutes and Members have been sitting here throughout the debate.

I thank my hon. Friend the Member for Mid Derbyshire (Mrs Latham) for her passionate discussion of neglected diseases, including podoconiosis, which she now knows is a new one to me. What she said was very moving, and I will look into it further—what she said was very moving—and I reassure her that we are reviewing the Global Fund seventh replenishment investment case. I hope that that gives her the confidence she needs.

Our development priorities will be achieved by taking a patient approach to development. That means unlocking the power of people, ideas and institutions and tackling the causes of crisis, as that is the basis for delivering lasting growth, stability and poverty reduction. This is about getting the system to work.

Alongside ODA, we harness trade, defence, diplomacy and other UK strengths to work for lasting policy change in partner countries. We spend more of our budget directly. By 2025, the FCDO intends to spend about three quarters of the funding allocated in the current spending review through country programmes. That does not mean turning our back on multilateral partners. We will maintain a wide range of partnerships with multilateral organisations. They remain key partners for achieving shared objectives and tackling global challenges that the UK alone cannot solve. Geographically, we maintain our commitment to Africa, while we continue to focus on the Indo-Pacific, including by expanding the work of British International Investment in the region.

On the commitment to Africa, we are committed to building partnerships with African countries, leading to a freer, safer, more prosperous, healthier and greener continent. We prioritise key strategic partners such as South Africa, Nigeria, Ethiopia, Kenya and Ghana. We will target how we spend resources in fragile states or countries that need extra support, and we partner with the African Union when we see that our interests align and add value.

One of the questions from the Liberal Democrat spokesperson, the hon. Member for Oxford West and Abingdon (Layla Moran), was about Ethiopia. In the last financial year, we spent roughly £240 million of ODA in Ethiopia. That is about 7% of the entire UK spend. Ethiopia is a very important country. It is a very fragile state, particularly with famine in the south and conflict in the north. We have consistently called on all parties to work towards the ceasefire, which remains very fragile. Aid is flowing. It is not enough, but large proportions of the aid that is flowing is going on trucks that have been bought with UK aid, because we are one of the key contributors in that area.

[Liam Byrne]

I hope that the Minister may come on to not just the £10 billion of the aid budget, but the Government’s strategy on the £19 billion of special drawing rights.

[Vicky Ford]

Let me come to the special drawing rights; I was about to go through more of the specific questions that Members asked. We have committed to channelling up to £4 billion of our special drawing rights. The first £1 billion has already been committed as additional funding to the IMF’s poverty reduction and growth trust. In addition, the Chancellor made a commitment in April this year to allocate another £2.5 billion to the new IMF resilience and sustainability trust. That fills a crucial gap in the IMF’s toolkit. It provides affordable financing to low-income and vulnerable middle-income countries to address long-term challenges.

At the African Development Bank meetings that I attended in Ghana this year, I also explained that I was very keen to channel some of our SDRs through the ADB. Technically, the money does not come to us—it remains a shareholding in the bank. We cannot do that by ourselves; we have to do it collectively with some of the other owners of SDRs. I say that just to update the right hon. Gentleman that we are working on the matter. There are some technical issues as well.

[Liam Byrne]

Will the Minister give way?

[Vicky Ford]

No, because I want to get on to some of the right hon. Gentleman’s other points.

On ICAI, the budget is not actually reduced; it was to be a flat budget. In line with the framework agreement, we will consult with the International Development Committee if any changes to ICAI’s budget will have a significant impact on the Committee’s work plan. With ICAI, we will also work through whatever funding gap it may have, to understand what the impact could be.