The UK will reduce its spending on foreign aid next year, Finance Minister Rishi Sunak has confirmed on Wednesday.
The move came amid opposing voices from several former Prime Ministers, although a poll showed that 60 percent people thought the UK had been spending too much on overseas aid.
Sunak said the government intends to return to its 0.7 percent target when the fiscal situation allows.
“This country has always and will always be open and outward-looking, leading in solving the world’s toughest problems,” Sunak said.
“But during a domestic fiscal emergency, when we need to prioritise our limited resources on jobs and public services, sticking rigidly to spending 0.7 percent of our national income on overseas aid is difficult to justify to the British people, especially when we’re seeing the highest peacetime levels of borrowing on record,” Sunak said, in response to opposing voices including those of several former PMs.
“I have listened with great respect to those who have argued passionately to retain this target. But at a time of unprecedented crisis government must make tough choices.”
Former PMs Opposed the Move
Several former UK prime ministers have voiced their concerns when reports said the aid cut was part of the Spending Review.“Cutting our overseas aid is morally wrong and politically unwise. It breaks our word and damages our soft power. Above all, it will hurt many of the poorest people in the world,” he said. “I cannot and do not support it.”
“Moral, because we should be keeping our promises to the world’s poorest, not breaking them. A strategic error, because we would be signalling retreat from one of the UK’s vital acts of global leadership. And a political mistake because the UK is about to chair the G7 and important climate change negotiations.”
Blair said British foreign aid has saved millions of lives.
“People always highlight the cases of abuse of aid to discredit the whole notion of it. But over the past 20 years, the British commitment of 0.7 percent has done the following,” Blair said.
“It has helped cut the deaths from killer diseases—malaria, HIV, and others—on the continent of Africa, measured literally in millions of lives. ... raised life expectancy dramatically. Educated better many millions more children. Created stability and assisted development, which has seen investment and living standards rise to levels not experienced before.”
Blair added that foreign aid is not about charity, but about enlightened self-interest.
“This has been a great British soft power achievement. It isn’t about charity. It’s enlightened self-interest. Neither the challenge of climate or coronavirus can be met without Africa. Nor can those of extremism and uncontrolled immigration. To change it is a profound strategic mistake, and I sincerely hope the Government will not do it.”
Sunak: We Shouldn’t Judge UK’s Standing Just By Money
Overseas aid is only one of the ways the UK plays its role in the world, Sunak said.The chancellor said the recent military spending boost allows the UK to provide security around the world as well as the UK itself, and that the government is investing more in the UK’s diplomatic network, and funding new trade deals.
“We should, however, judge our standing in the world not just by the money we spend but by the causes we advance and the values we defend,” Sunak said.
“The UK is forecast to borrow a total of £394 billion [$526 billion] this year, equivalent to 19 percent of GDP, the highest recorded level of borrowing in our peacetime history,” Sunak told Parliament.
The underlying debt is forecasted to be 91.9 percent of GDP, and continuously rising every year, reaching 97.5 percent of GDP in 2015.
Sunak said the situation is clearly unsustainable over the medium term.
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