What to Expect from UK Aid Cuts
Catherine Anderson
Staff Writer
United Kingdom Prime Minister Keir Starmer announced in February that the country will cut its aid budget to 0.3 percent of gross national income by 2027, Devex reports. International development minister Anneliese Dodds resigned following the decision. The Labour Government had planned to return to spending 0.7 percent of Gross National Income (GNI) on foreign aid, and even during the announcement, Starmer said he remained committed to reaching that goal, the Commons Library says.
Currently, aid is 0.5 percent of the country’s GNI. Starmer said that the cuts would fund an increase in the UK’s defense spending, the Center for Global Development says. This would constitute a 40 percent cut and would be the lowest share of GNI to go towards overseas development since 1999. The Center for Global Development reports that the UK’s international spending is likely around 0.17 percent of GNI, or about £5.2 billion ($6.6 billion). Parliament would still have to vote for this change to go into effect.
The cut came just weeks after the Trump administration froze United States aid spending and told European nations they needed to increase their defense spending, according to Chatham House. The UK’s aid cut differed from the U.S. in that it was part of a series of budget cuts that began in 2020; the UK’s aid budget is currently the lowest it’s been in decades, Chatham House continues. While cuts to European aid, which have also been seen in France and Germany, are significant, their implications are not quite as significant as the consequences of the cuts to USAID.
In fact, cuts to American aid may have actually encouraged the UK and other countries to make cuts to their own aid budgets; the UK has long faced pressure to improve its gaps in military spending, though it is unclear if cuts to the aid budget will be sufficient to fill its current gaps, Chatham House says. According to the Commons Library, there would need to be further taxes or spending changes to actually increase defense spending to 3 percent of Gross Domestic Product.
Additionally, as the Center for Global Development reports, the government must now decide how to focus its allocations amongst various international commitments. In 2020, Prime Minister Boris Johnson also made sweeping cuts to aid, which may give some insight as to the consequences of both cuts to USAID and to the UK aid budget now, the Conversation reports. In June of 2020, Johnson effectively closed the Department for International Development (DFID), which was Britain’s equivalent to USAID. Up to that point, the U.S. and the UK had been global leaders in foreign aid. Both countries’ aid practices have long sparked debates, both about the intent and the efficacy of their aid. Ultimately, however, when DFID closed, many critics voiced concerns, especially given that the world was still in the midst of the COVID-19 pandemic.
The Conversation reports that cuts to aid have not necessarily improved efficacy or efficiency in UK aid; instead, its new Foreign, Commonwealth and Development Office has largely lost Britain’s former status as a leader and expert in foreign aid. As USAID had a much larger budget than DFID did, it is likely that cuts to USAID may also not lead to increased government efficiency, which has been one of the Trump administration’s main arguments in its budget cuts.
The Guardian reports that cuts to UK aid could be devastating for some communities, especially to less developed nations who depend on foreign aid. UK aid funds a myriad of projects that offer humanitarian assistance and health services, as well as programs that work with those facing climate challenges and conflicts.
UK aid cuts followed sweeping cuts by the Trump administration as well as cuts from others who had previously been major contributors to foreign aid efforts, such as Germany, France, Belgium, and the Netherlands. The Guardian continues that, if the Conservative party wins upcoming elections, Canada could follow suit.
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