Charities have criticised the government for putting off restoring the overseas aid budget to previous levels, saying it has broken a manifesto promise.
The government was roundly condemned two years ago when Rishi Sunak, the then Chancellor of the Exchequer, announced the UK’s overseas aid budget would be cut from 0.7 per cent of gross national income to 0.5 per cent, slicing more than £4bn off the annual spend.
The government has since said it would return overseas development spending to 0.7 per cent “when the fiscal situation allows”.
But Chancellor Jeremy Hunt said yesterday in his Autumn Statement that forecasts by the Office for Budget Responsibility showed a “significant shock to public finances so it will not be possible to return to the 0.7 per cent target until the fiscal situation allows”.
He said the government remained committed to the 0.7 per cent target but said the plans he set out in the Autumn Statement assumed overseas development aid spending would remain “around 0.5 per cent for the forecast period”.
Hunt told parliament: “As a percentage of GNI, we were the third highest donor in the G7 last year and I am proud that our aid commitment has saved thousands of lives around the world.”
He said he would work with Andrew Mitchell, the development minister, “to make sure we continue to play a leadership role in tackling global poverty”.
Mitchell put pressure on the government as a backbench MP last year for it to return the overseas aid budget to 0.7 per cent of GNI.
Simon Starling, director of policy, advocacy and research at the NGO umbrella body Bond, said: “The chancellor has ruled out restoring UK aid to 0.7 per cent GNI, breaking the Conservative manifesto commitment.
“We hope the chancellor’s reference to a budget of ‘around 0.5 per cent’ reflects an intention to increase UK aid above the artificial ceiling, which would be welcome.
“Marginalised communities facing climate change, conflict and poverty need to see a clear commitment from the UK government that it will deliver on its promises and demonstrate compassion, dignity and fairness.
“Additional resources to cover the costs of hosting refugees in the UK is welcome, but the government must urgently increase UK aid and begin a return to 0.7 per cent.”
Sophie Powell, chief of UK advocacy at Christian Aid, said: “The prime minister and his chancellor have chosen to balance the books on the backs of people in poverty.
“Despite efforts from the development minister, we are once again seeing the further sabotaging of the aid budget.
“At the very least, the UK government must return to using what aid budget there is for its proper purpose, directing funds to local communities in the greatest need.”