International Aid: Treasury Update — House of Commons, 2021-07-13
Topic: International Affairs
Rishi Sunak (Conservative, Centre-right): On the contrary; this Government have brought a coherence and a strategic symmetry to our approach to international development and foreign policy, which is improving how we project our influence and effectiveness around the world I have heard that this is the only difficult thing that we are doing, but that is simply not true. We have had to build fiscal resilience and have asked businesses to pay more tax. We have frozen the personal income tax allowance, taken a targeted approach to public sector pay and, yes, we also had to take the difficult decision to temporarily reduce our aid budget. This decision follows a path that Parliament explicitly envisaged when it enshrined the 0.7% target in law. Section 2(3) of the International Development (Official Development Assistance Target) Act 2015 clearly foresaw the fiscal circumstances that might mean the target could not be met. And let us be honest: if that test is not being met in the aftermath of the worst economic shock in 300 years, surely it never will This decision is categorically not a rejection of our global responsibilities. The UK will spend over £10 billion this year on overseas development. According to the latest figures, that is more as a proportion of national income than all but two of the G7 countries—more than Japan, Canada, Italy and the United States, and much more than the average of the 29 countries in the OECD’s Development Assistance Committee Our spending on humanitarian causes goes far beyond just our ODA budget. We have the fourth biggest defence and security budget in the world and the third largest diplomatic network. On average, we contribute nearly £500 million a year to the United Nations peacekeeping budget. We use our trade policy to reduce poverty, with developing countries benefiting from tariff savings of up to £1 billion a year. It is why we are working with the G7 to deliver the clean and green infrastructure financing initiative. With UK Government support, this year 1.5 billion people around the world will be vaccinated with the Oxford-AstraZeneca jab, provided at no profit whatsoever There is no question about our commitment to overseas aid. The only question is when we return to the 0.7% target. The motion puts beyond all doubt that we will do so once two clear objective tests have been met: our national debt is falling and we are no longer borrowing for day-to-day spending. Those tests are in line with the approach set out in our manifesto and at the Budget. They are practical and realistic If the House votes against the motion today, it is an effective vote. We will return, irrespective of the circumstances, to 0.7% next year. Instead of voting for responsibility, the House would in effect be voting to say that no circumstances could ever justify a move. I know that a deep sense of conscience underpins the view that the amount we spend on overseas aid is a moral issue. Many hon. Members will know the words: "Charity is patient, is kind." I think of those words and I share that sense of conscience. That is why we are maintaining the target, not abolishing it; why we are setting out the conditions, not obscuring them, and why we are basing the conditions independently—