Official Development Assistance Reductions

Seema Malhotra Excerpts

Tuesday 4th November 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Seema Malhotra)]

It is a pleasure to serve under your chairship, Sir Desmond, and to respond to an incredibly thoughtful and important debate. I am grateful to the hon. Member for West Dorset (Edward Morello) for securing this debate, and I thank him for his work on the Foreign Affairs Committee and multiple APPGs.

The Minister for Multilateral, Human Rights, Latin America and the Caribbean, my hon. Friend the Member for Bridgend (Chris Elmore), who covers development in the Commons, would have been here to participate in the debate, but is currently representing the UK at the world summit for social development in Doha. I am sure that the House will understand his unavoidable absence. I am grateful to respond on behalf of the Government. I will endeavour to cover a number of the points that were raised today, but I am sure that my hon. Friend will also be willing to pick up on some of those issues that hon. Members have put on the record. I also thank the Chair of the International Development Committee, my hon. Friend the Member for Rotherham (Sarah Champion), for her work, her remarks today and the Committee’s recent report, which the Department will be responding to in due course.

A number of issues were raised today, and the same very important point was made by a number of hon. Members about the connection between our security and global security. We continue to be clear-eyed about risks to security, which are at the forefront of our minds. We believe that international development is an important lever in delivering mutually beneficial outcomes, including security for us and across the world. A number of other issues were also raised, including on soft power influence in the world, long-term planning, shaping the world of tomorrow and aid matching. Let me add context to those challenges and the question of whether this Government are looking inwards more than outwards. The whole direction of our Government over the last 18 months has been to step up on the global stage. We are a Government who inherited a very difficult set of finances, but more than that, we inherited a broken Government in so many respects, which had stopped looking outwards and had lost respect and trust across the world.

I am proud that we are a Government focused on our responsibilities and place in the world. I am proud of the work that we have done to bring stability to our economy, but we are also now focusing on the long term here and abroad. That is also illustrated through some of the main trade deals and resets that we have had with the US, the EU and India, but we have been upgrading our partnerships with so many countries. I recently participated in the Aqaba process in Italy, hosted by the Italian Prime Minister and the King of Jordan, with a focus on counter-terrorism, development and support in the Sahel region. It is important that we recognise the links between security and prosperity across the world.

Earlier this year, to enable a necessary increase in defence spending, the Government made the decision to reduce our official development assistance budget. We have consistently affirmed the UK’s commitment to international development and to restoring spending of 0.7% of GNI on ODA when the fiscal circumstances allow. It is also the case—this point has been made by a number of hon. and right hon. Members—that it is not all about how much we spend, but about how we spend. It is crucial also that we modernise our approach for today. A more volatile and uncertain world demands a new development model. With less money, we must make choices and focus on the greatest impact. Every pound must deliver for the UK taxpayer and the people we support.

I note the comments about corruption and misappropriation, and I will say that from the conversations I have had with Baroness Chapman, I know that ensuring that we are spending wisely and have value for money—this has been identified as a strength of the UK by the International Development Committee—are top of her list. It is important that we keep that focus.

It is worth spending a little time on our strategy and what is at the heart of our new approach and fundamental shift. First, we are moving from donor to investor, partnering with countries to unlock growth, jobs and trade through innovative finance and private sector investment. Secondly, we are moving from service delivery to system support, helping countries build their own education, health and economic systems, so that they can thrive without aid. Thirdly, we are moving from grants to expertise, leveraging UK strengths such as our world-class universities, the City of London, the Met Office, His Majesty’s Revenue and Customs and the education, health and tech sectors. Fourthly, we are moving from international intervention to local leadership, working increasingly in partnership with local actors, rather than through internationally driven interventions. That does speak to the point that a number of Members made about partnership rather than paternalism.

[Several hon. Members rose—]

[Seema Malhotra]

I am conscious of time, so I will make some progress.

[Sarah Champion]

You have lots of time.

[Seema Malhotra]

I have a number of points to make, but I will come back once I have made them. On changing from donor to investor, a number of comments were made about British International Investment and other development finance institutions. These are central to the UK’s shifts. BII deploys patient capital to stimulate private-sector growth in developing countries, balancing financial returns with development impact. Indeed, we have seen our partnerships grow, such as with the Gates Foundation. Our co-investments with the Gates Foundation in breeding wheat with higher zinc and climate resilience have benefited more than 97 million people in Pakistan, positively impacting their health and quality of life. In Ghana, the UK is using its development relationship to support Ghana’s goal to move beyond aid. A Ghanaian textile factory financed by British International Investment has grown into one of west Africa’s largest, providing 6,000 jobs, mainly for women, and exporting garments globally.

[Sarah Champion]

It is of course the Government’s right to make whatever policy decisions and budget cuts they feel appropriate, but how are they planning to do the four priorities with a 25% cut in staffing and a £6 billion cut in the available money?

[Seema Malhotra]

I will go through how we will take some of the priorities forward and some of the changes that we are seeing through our strategy. I hope that helps answer my hon. Friend’s question. I want to make a point about our investment in Gavi, of which we were a founding member under the last Labour Government. It has generated £250 billion in economic benefits through reduced death and disability. It is a partnership based on the UK’s world-leading expertise in not just funding but research.

From grants to expertise, that partnership comes up in conversations that I have with countries that I work with as Minister with responsibility for the Indo-Pacific. It is important in terms of how we are working to increase the expertise of partners, including the Bank of England, the City of London and the University of Cambridge. We are helping to train financial regulators across countries, and His Majesty’s Revenue and Customs’ partnership with the Ghana Revenue Authority used the UK’s expertise to increase Ghana’s tax revenue collection by £100 million last year—revenues that will help fund Ghana’s transition from aid.

I am conscious of time, but I will make a few further remarks. Reducing the overall size of our ODA budget will necessarily have an impact on the scale and shape of the work that we do. But we are sharpening our focus on three priorities, which match partner needs and the long-term needs of people in the UK, and are also in areas where we can drive real change. These priorities have been highlighted in this debate—humanitarian, health, and climate and nature—and they are underpinned by economic development. They will help maximise our impact and focus our efforts where they matter most.

I reassure the House that the UK will continue to play a key humanitarian role, including responding to the most significant conflicts of our era, in Ukraine, Gaza and Sudan. We will not let Sudan be forgotten. We are the third-largest bilateral humanitarian donor to Sudan, and in April we announced £120 million to deliver lifesaving services to over 650,000 people affected by the conflict.

[David Taylor (Hemel Hempstead) (Lab)]

On that point, will the Minister give way?

--- Later in debate ---

[Seema Malhotra]

I am sorry, but due to time I will be wrapping up. At the weekend, the Foreign Secretary announced a further £5 million of support to the crisis in el-Fasher. While we have seen cuts, we have avoided disproportionate negative impacts on women and girls and people living with disabilities in this year’s ODA allocations, as confirmed by the equalities impact assessment that we published. We will continue to strengthen actions to help mitigate some of the negative impacts on equalities, including by putting women and girls at the heart of everything we do.

I will make a final point in relation to the ODA budget for supporting refugees in the UK. The Government are focused on reducing asylum costs and ending the use of migrant hotels by the end of the Parliament, and we have already made progress on that. The UK remains committed to international development. We are working with our partners to shape the next stage of global development, and at the same time, we are strengthening the UK’s safety, security and prosperity—and global safety, security and prosperity—which is essential for delivering all the missions of this Government.

[Sir Desmond Swayne (in the Chair)]

Edward Morello, you have less than a minute.