0.7% Official Development Assistance Target Debate

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Department: HM Treasury

0.7% Official Development Assistance Target

Sarah Champion Excerpts
Tuesday 8th June 2021

(3 years ago)

Commons Chamber
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Steve Barclay Portrait Steve Barclay
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The point is that we have made a number of difficult decisions, and I will come on to that, but we are also continuing to spend £10 billion in response to the commitments that we have made. I am sure that my hon. Friend, as a former Treasury Minister, is well aware of the fiscal reality we face.

Strong public finances mean making difficult decisions, such as increasing corporation tax. That is one of the difficult decisions that my right hon. Friend the Chancellor has made, alongside the decision around overseas aid. Indeed, this is something that the International Development (Official Development Assistance Target) Act 2015 explicitly anticipates when it refers to the effects of one or more of the following:

“(a) economic circumstances and, in particular, any substantial change in gross national income;

(b) fiscal circumstances and, in particular, the likely impact of meeting the target on taxation, public spending and public borrowing;

(c) circumstances arising outside the United Kingdom.”

In other words, the 2015 Act clearly envisages situations in which a departure from the target may be necessary. It provides for the Secretary of State’s accountability to Parliament by way of the requirement to lay a statement before Parliament and, if relevant, makes reference to economic and fiscal circumstances, as well as circumstances outside the United Kingdom. Indeed, the Foreign Secretary has already committed to doing that, as required by the Act.

Sarah Champion Portrait Sarah Champion (Rotherham) (Lab)
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That accounts for the cuts in July, but surely it was a political decision, and potentially an unlawful one, to cut to 0.5% in November.

Steve Barclay Portrait Steve Barclay
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The provisional data shows that for the 2020 ODA figures, the 0.7% was met. The point is that the Act allows for the economic and fiscal instance that I just set out—it is in section 2. If the UK were to spend 0.7% of gross national income as ODA, it would cost the country an additional £4.3 billion this year. Given our commitment to fiscal sustainability, we could offset that either by raising taxes or by cutting public spending. [Interruption.] We can come on to that. To put that in context, it means a 1p increase in the basic rate of income tax or about a 1% increase in the standard rate of VAT at a time when taxes are at a historical high.

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Sarah Champion Portrait Sarah Champion (Rotherham) (Lab)
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Thank you, Mr Speaker, for your assistance in securing this debate. The number of people not only who have campaigned on this issue for the past year but who want to speak today shows the true strength of feeling on this issue and the cross-party support for it.

I wish to talk about hypocrisy, which it is something I just cannot stand. Unfortunately, the Government’s approach to ODA foreign aid spend is dripping in hypocrisy. The Government have stated their seven global priorities, and we know the priorities for the upcoming G7, but unfortunately what the Government actually do does not match up in any way. I wish to use this speech to highlight specific examples of where the Government are failing.

On global health security, we are cutting by 95% our funding for the global polio eradication initiative, at the exact moment when we are about to eradicate polio. Funding for UNAIDS is cut by 83%, impacting the provision of life-saving HIV treatment to the most marginalised. A programme by the Liverpool School of Tropical Medicine to build stronger, more resilient health systems in low and middle-income countries is cancelled. The King’s Global Health Partnerships programme “Saving Lives”, which was due to improve care for thousands of pregnant women, is cancelled.

Funding for neglected tropical diseases is wiped out. Funding for life-saving water, sanitation and hygiene projects is slashed by 80% in the face of covid-19 and climate change. The Concern Worldwide project to provide healthcare to people living in remote and disadvantaged areas of Bangladesh is terminated. The project was due to reach 2.6 million people, including 140,000 people living with a disability.

The G7 Foreign Ministers have committed to end violence against women and girls, while girls’ education is a key priority for the Government, yet the women’s integrated sexual health programme is cut by £72 million. The International Planned Parenthood Federation described the “brutal cuts” as

“a tragic blow for the world’s poorest and most marginalised women and girls.”

The UK Bangladesh Education Trust project to educate girls forced into domestic labour has been cut entirely. In Tanzania, the projects of Children in Crossfire and EdUKaid to support children, including disabled children, to access education have been cut entirely.

The United Nations Population Fund is cut by 85%, potentially leading to 25,000 unintended pregnancies. STiR Education projects supported marginalised families across Uganda to access education but have been cut entirely. The projects of S.A.L.V.E.—Support and Love Via Education International—to support girls living on the streets to return to school are cut entirely.

The Women for Women International female empowerment projects in Nigeria and Afghanistan are terminated, leaving thousands of marginalised women abandoned. UNICEF’s core funding is cut by 60%, impacting its ability to provide children with access to water, sanitation, education and health services. An International Rescue Committee project in Lebanon to prevent and respond to gender-based violence, and for child protection, has been cut, depriving 107,000 people of those services. In Sierra Leone, the budget for an IRC programme was cut by 60%. It reached more than 3 million people, mostly adolescent girls.

Humanitarian preparedness and response is also a priority, alongside the G7 commitment to supporting developing countries to tackle and prevent humanitarian threats, but aid to support Rohingya refugees in Bangladesh has been cut by 42%. Mines Advisory Group programmes have been cut by almost 50%, with all funding for work in Lebanon withdrawn. Humanity & Inclusion projects providing speech and physiotherapy sessions for disabled Syrian refugees have been cut entirely. The Tomorrow’s Cities project, working to reduce the risk to poor countries of disasters such as earthquakes, volcanic eruptions and landslides, has been cut by 70%, compromising the ability of vulnerable communities to respond to disasters. Aid to Yemen has been slashed by nearly 60% in the face of catastrophic famine.

I could go on and on; that is only the beginning of the cuts that this Government are bringing about. That wrecks not only our international standing but the security of this country, because we are cutting money not just for humanitarian projects, but for projects that prevent conflict and poverty. What are some of the main drivers of conflict around the world? Unstable Governments, famine and lack of opportunity.

We were the world’s leading country on a number of those projects, which kept us safe and allowed the world to prosper. By cutting them, and by stubbornly refusing to give us the data on when fiscal circumstances will allow us to go back to 0.7%, the Government are undermining this country and the investment made thus far by the taxpayer.