International Aid: Treasury Update

Rachel Reeves Excerpts

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

The Government say that global Britain is at the heart of how we engage with the world, but this move to unilaterally cut overseas aid is a direct attack on what it means to be global Britain. It is a decision that will reduce our power, reduce our influence in the world and undermine our security here at home. At this moment perhaps more than any other, we should be looking to project our power and influence for good around the world, to create change in our national interest but in the global interest, too.

I am proud—we should all be proud, in this House and across our great nations—of what we have achieved together through overseas aid. Together, we have pushed polio to the verge of eradication. Together, we have improved water and sanitation for more than 1.5 million people. Together, we have reduced maternal and infant mortality, as my right hon. Friend the Member for East Ham (Stephen Timms) spoke about. And together, we have ensured that girls in the poorest places in the world can go to school, as we all take it for granted that our daughters and granddaughters can go to school.

Yet today the Government seek to undo that great progress. Instead of being a global leader, this Government seek to retreat on the international stage. I can see the understandable discomfort that that is causing hon. and right hon. Members on the Government Benches, who know the consequences of this decision and the short-sightedness of what the Prime Minister has said and what I fear the Chancellor will go on to say.

I commend in particular the contributions of the right hon. Member for Sutton Coldfield (Mr Mitchell), who advised colleagues to beware the traps set for the unwary; my right hon. Friend the Member for Leeds Central (Hilary Benn), who said that this motion is just not who we are as a people; and the right hon. Member for Haltemprice and Howden (Mr Davis), who said, “When it is a choice between lives and money, I choose lives.”

The reason there has been a consensus from five previous Prime Ministers across both parties, including the right hon. Member for Maidenhead (Mrs May), on the importance of the 0.7% commitment is that the case for overseas aid both expresses the moral responsibilities that we have and is firmly in the national interest.

[Jim Shannon (Strangford) (DUP)]

One of the NGOs that I would be involved with is the HALO Trust, the organisation that clears mines, unexploded ordnance and improvised explosive devices. If it comes to giving money to one group, there is a group that saves lives, as the hon. Lady refers to.

[Rachel Reeves]

I thank the hon. Gentleman for that intervention, and he speaks powerfully of what he has seen. What has guided former Prime Ministers and Ministers is a moral compass, and I ask the Chancellor what moral compass guides the Prime Minister and Ministers today, as we cut the lifelines of support, and in the midst of a global pandemic as well. For several decades, we have recognised that the world is increasingly interdependent, and that overseas aid helps tackle poverty, infectious diseases and climate change, and reduces conflict, terrorism and the need for people to flee their own countries and seek refuge elsewhere. The Chancellor himself made that point in 2015, arguing that

“this Government’s commitment on international aid is a tangible example of…leadership”.—[Official Report, 20 October 2015; Vol. 600, c. 793.]

Where is that leadership today?

Crucially, overseas aid helps us respond to pandemics. Covid cannot be eliminated anywhere if it is not eliminated everywhere. These cuts will impede the ability of some of the poorest countries in the world to mobilise their public health systems and roll out this vaccine effectively. What good does that do any of us here? Until covid is under control globally, the risk is that this virus mutates and comes back to Britain and threatens all of us, including those who have already been double vaccinated. The Chancellor knows full well that our country’s commitments are as a proportion of our gross national income, and that is right; it means that as our economy grows our generosity as a country grows, but as our economy shrinks so does our generosity to those in the poorest parts of the world. That is right and it happens automatically, without the cuts being proposed on top. As the hon. Member for East Worthing and Shoreham (Tim Loughton) puts it, the “simplicity” of the 0.7% commitment is

“built into the formula: our payments go up in times of plenty and fall back when our economy is stretched.”

But with a 30% reduction—that is what we are talking about today—in just one year, never has our aid budget been cut so savagely, so suddenly and by so much.

Let us be very clear about the tests for returning to 0.7% of GNI spent on overseas aid. The second test the Chancellor set out is on our debt to GDP ratio falling. The OBR has forecast that that will not be met next year or the year after; at the very earliest it will be met in the financial year 2024-25. Let us look at the first test. In the past 30 years, the current budget balance test being proposed by the Chancellor today has been met only five times, and only for one year under a Conservative Government. But the test proposed by the Chancellor goes further than that, because it does not just refer to a “current budget balance”; it refers to a “sustainable current budget balance”. In the past 30 years , that has been met only under a Labour Government.

So if the Chancellor’s small-print conditions are applied to the latest OBR forecasts, we will not be achieving a current budget surplus in the whole of the forecast period. These are not tests to go back to 0.7% of GNI spent on overseas aid; they are tests to stop that ever happening under a Conservative Government again. So let us be clear about what we are voting for. If we vote for the Chancellor’s proposal today, this will not just be for a year; it will hang over us for as long as the Conservatives are in government.

If the Chancellor is serious about saving money—and I believe in value for money in every pound of taxpayers’ money spent—why did he happily sign off cheques for £2.6 million on a media briefing room that will not properly used and £200 million on a vanity yacht project to sell global Britain around the world—why not invest that money on overseas aid instead? There was £37 billion on a test and trace system that does not even work, and £2 billion on crony contracts for friends and donors of the Conservative party. What exactly does it say about the priorities of this Government? Why is the overseas aid budget being singled out for cuts by this Government? It is because this is ideological; it is not about value for money.

If this cut goes through this evening and the House votes for it, it will diminish Britain. It will reduce our power and influence for good in the world, and it will undermine our security here at home too. This is not just about how much aid we give overseas. It is about the country that we are and the country that we want to be. Whether a Government or a football team, when someone is on the world stage, how they conduct themselves and whether they lead by example really matters. Many hon. and right hon. Members on the Opposition Benches—and on the Government Benches too—know in their heart and in their head that what the Government propose is profoundly wrong. They know full well that it breaks the proud promises that we all made at the election only 18 months ago, not just during crisis but for as long as the Conservatives are in government, so I urge hon. and right hon. Members to reject the motion and do what they know is right for the poorest people in the world, and to honour the proud commitments that we all made in the national interest.