Spending Review 2020

Lord Reid of Cardowan Excerpts

Thursday 3rd December 2020 Grand Committee

[Lord Reid of Cardowan (Lab)]

My Lords, I follow the noble Baroness, Lady Hayman, and the right reverend Prelate in deprecating the cuts to our aid budget. In his spending review, the Chancellor said that it,

“strengthens the United Kingdom’s place in the world.”—[Official Report, Commons, 25/11/20; col. 830.]

He then cut another £4 billion from the aid and development budget. Let me clear: I welcome the much-needed increase in defence expenditure. But robbing the aid budget Peter to pay the defence budget Paul is no way to go about it. I despair. Does the Treasury still not understand that there are three ways in which we exert influence and strengthen our position in the world? The first is by a strong defence posture and capabilities; the second is by assiduous diplomacy; and the third is by extending aid and development to others.

That is not just a moral decision—though assuredly it is. It is much more. First, it is a crucial element of our soft power. Secondly, it is enlightened self-interest. Many of the huge problems that we face, from disease, to conflict, to mass migration, have their very roots in the lack of economic and social development elsewhere in the world. Therefore, such a huge reduction in our aid and development budget is decidedly the wrong thing to do in our own interest in the longer term. It is wrong and short-sighted for us, as well as being wrong for those in other parts of the world who would be the recipients of our aid and development resources.