Keir Starmer confirmed yesterday that the ODA budget would be cut from 0.5% of gross national income to 0.3% and reinvested into defence, with the PM declaring a “new era of national security”.
This will see defence spending increased to 2.5% of GDP from April 2027, which is the biggest rise since the Cold War and comes after US president Donald Trump demanded that European allies boost their military budgets.
However, several organisations have warned that the decision could threaten climate finance targets and the already ailing Sustainable Development Goals (SDGs).
"We import two-fifths of our food from overseas, much of which we simply can’t grow here in the UK, and around half of that from areas most vulnerable to extremes driven by climate change,” said Gareth Redmond-King, head of international programme at the Energy and Climate Intelligence Unit.
“We are mutually-dependent on these countries, with climate finance paid for from the aid budget supporting the UK’s food security as well as the livelihoods of the farmers who produce that food.
“Let’s be clear this can be life and death for struggling communities, and this reduction could make meeting the UK's climate finance commitments even more challenging."
Starmer described the decision to cut aid as “very difficult and painful”, but said that the move would increase the “resilience of our country so we can protect the British people, resist future shocks, and bolster British interests”.
However, Hannah Bond, co-CEO of ActionAid UK, described the decision as “reckless” and said she is “profoundly shocked and disappointed” the government plans to cut the ODA budget “to less than half of our legal obligation”.
“That it has done so to increase military spending only adds insult to injury,” she continued.
“At a time when USAID 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.”
Meanwhile, the Independent Commission for Aid Impact has today published a report revealing that less than 20% of the UN's SDGs are on track for achievement by 2030, and that 73% of people in extreme poverty live in areas affected by both conflict and climate change, a figure expected to rise to 86% by 2030.
Although the ODA budget represents just a small share of global development finance, the report insists it remains “vital for low-income countries and those affected by conflict and fragility.”
It notes that major “trade-offs” will continue in the current challenging economic and geopolitical climate as the government sets strategic priorities and makes choices on how to allocate resources.
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Chris Seekings is the Deputy Editor of IEMA’s Transform magazine, which is published biomonthly for IEMA members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.