Official Development Assistance

Lord Sikka Excerpts

Wednesday 2nd December 2020 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I agree with the noble Lord on his final point. The reduction in GNI has meant a circa £2.9 billion reduction in the current aid spend, but we will fulfil our commitment to the GNI for this year. I also accept the principle that the proposal of 0.7% going down to 0.5% for 2021 presents an additional reduction. I know that the letter from my noble friend Lady Anelay to the Foreign Secretary is in the course of being responded to.

[Lord Sikka (Lab) [V]]

My Lords, I draw attention to my entry in the register of interests. There is another aspect of the ODA which the Government continue to neglect: the amount of taxes which are avoided in emerging economies and low-income countries. Last year, they lost $144 billion due to tax avoidance by corporations and the rich. The tax avoidance industries in the UK and the Crown dependencies and overseas territories are particularly responsible for that. What steps will the Minister take to ensure that the emerging economies get the taxes which are due to them? That would give them plenty of resources for development.

[Lord Ahmad of Wimbledon (Con)]

My Lords, it needs political leadership within country, but we should be lending technical support to ensure that a greater level of tax is collected within developing parts of the world. I note what the noble Lord has said.