Oral Answers to Questions

Preet Kaur Gill Excerpts

Tuesday 30th January 2024 Commons Chamber

[Mr Mitchell]

The reason the Government were able to reduce the size of electricity bills for hard-working families was precisely because we are meeting our targets and will meet our international commitments. Britain’s international targets and commitments are enshrined in law as a result of the activities of this House. Internationally we are committed, as the right hon. Gentleman knows and as was set out to the House towards the end of last year, to spending £11.6 billion on ensuring that we meet our climate targets and produce climate finance. I would argue that that figure will be nearer £16 billion by 2026.

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

5. Whether he has had recent discussions with his international counterparts on a strategy to reduce debt in the developing world.

[The Minister of State, Foreign, Commonwealth and Development Office (Mr Andrew Mitchell)]

The Government recently set out our commitments on developing country debt in our international development White Paper.

[Preet Kaur Gill]

The main mechanism to tackle the debt crisis, the common framework for debt treatment, is failing due to the low level of participation by private creditors who own around 40% of low-income country debt. Does the Minister agree that there is strategic need for the United Kingdom to take debt reduction seriously and change its approach, given the crisis in Africa and the growing role of China and Russia in the developing world?

[Mr Mitchell]

The hon. Lady is right to point to the considerable difficulties that countries are finding. Some 15% of low-income countries are in debt distress, and 45% are at higher risk of that. The African Development Bank says that debt repayments in 2024 are likely to be six times the level of 2021. That is why Britain is working with other creditors to secure debt restructurings, most often through the G20 common framework, but also through the Paris Club.