Sir Keir Starmer is set to slash the UK’s foreign aid budget to fund the largest increase in defence spending since the Cold War.
The prime minister said the extra £13.4bn for defence every year from 2027 was needed to counter “tyrants” like Vladimir Putin.
The increase in defence spending from 2.3 per cent to 2.5 per cent of GDP will be funded by cutting spending on overseas aid from 0.5 per cent of gross national income (GNI) to 0.3 per cent, Sir Keir said.
Former foreign secretary David Miliband warned reducing overseas aid spending was a “blow” to Britain’s reputation which would have “devastating consequences”.
UNICEF said the move was “deeply concerning” and WaterAid warned it was a “cruel betrayal” of people in poverty.
Here, The Independent takes a look at how much the UK spends on foreign aid and what the money has funded over the years.
How much does the UK spend on overseas aid?
Britain spends roughly 0.5 per cent of annual gross national income on overseas foreign aid. Between 2020 and 2023, the UK spent £54bn on “official development assistance”, according to the FCDO.
In 2023, the UK spent £15.34bn, compared with £12.8bn in 2022. In 2021, the UK spent £11.4bn and in 2020, £14.5bn was spent.
Around £4.3bn was spent on support for refugees and asylum seekers in the UK in 2023, with around £1.6bn spent on humanitarian aid and healthcare.
Where is UK overseas aid received?
In 2023, Ukraine was the top recipient of UK overseas aid. It received £250m - a decrease of £92m (26.9 per cent) - compared to 2022.
Ethiopia came second at £164m in 2023, a huge 82.4 per cent increase (£74m) compared to the year before. Afghanistan was third place, receiving £115m.
Syria, Yemen, Nigeria, Somalia, Pakistan, Brazil, and Bangladesh were all in the top ten recipients, receiving a combined total of £597m.
What have charities said about the reduction?
Charities have said the changes will have “devastating” repercussions and will have “direct consequences for children and families in the UK as well as around the world”.
ActionAid, a charity that works with women and girls living in poverty, described Sir Keir’s decision to slash the aid budget as “reckless” and said it is “profoundly shocked and disappointed” by the Government’s decision.
Chief executive Hannah Bond said in a statement: “There is no justification for abandoning the world’s most marginalised time and time again to navigate geopolitical developments. This is a political choice – one with devastating consequences.
“At a time when Usaid (the United States Agency for International Development) has been gutted and development initiatives abandoned by one of the world’s largest donors, the UK Government appears to be following suit rather than standing against this dangerous trend.”
Save the Children UK similarly said it was “stunned” by the move, labelling it “a betrayal of the world’s most vulnerable children and the UK’s national interest”.
Chief executive Mozzam Malik described the change as “jeopardising the UK’s partnership with countries across the world” and said it will “have direct consequences for children and families in the UK as well as around the world”.
He added: “Earlier this week, the prime minister promised to ‘stand with Ukraine’. Now he’s serving notice on the support needed by the country’s children, who have been forced from their homes, seen their schools bombed and lived in fear for three years.”
