Overseas Development Assistance: Budget

Lord Lancaster of Kimbolton Excerpts

Tuesday 27th April 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, my noble friend speaks with great insight and expertise on this subject. I note very carefully what she has said. The underlying base on which we will return to 0.7%—again, the reduction to 0.5% is temporary—is, as my noble friend suggests, the prevailing economic conditions and fiscal conditions at that time. I note what she has said. We and our colleagues in the Treasury will keep a very firm eye on that.

[Lord Lancaster of Kimbolton (Con)]

My Lords, I know from my time at DfID the impact that UK aid has had. However, I, like many of the general public, have some sympathy with the position the Government have taken, on the condition that it is only temporary. Can my noble friend tell me why the cuts or reductions in spending seem to have fallen disproportionately on bilateral rather than multilateral aid?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the reductions are being finalised. I assure my noble friend that in the work we do with our multilateral organisations, as I have seen directly as Minister for the Commonwealth and Minister for the United Nations, the positive impact of the sum of the whole—if I may put it that way—is often greater. Nevertheless, our funding to multilateral organisations and bilaterally is due to the overall impact assessment we make of a country’s requirements. That will continue to be the case. However, we are having to make reductions in our multilateral support, as well as in the support we extend on a bilateral basis.