Britain’s foreign aid budget is likely to be cut in the next parliament, Theresa May signalled today.
The law requiring 0.7 per cent of gross national income to be spent on aid will be reviewed before 2020, the Prime Minister’s spokeswoman said
The move follows fierce attacks by Conservative MPs and newspapers of the legal commitment, while domestic spending continues to be cut.
There has also been growing criticism of the way some of the £12bn budget is spent, particularly the cash directed through the Government’s private equity arm.
Nevertheless, any move to change the law will be the clearest breach yet with David Cameron’s legacy – and will be condemned by aid agencies.
The possibility of a review first emerged when Chancellor Philip Hammond said that all areas of spending would be re-examined, probably in 2019, before the next Conservative manifesto is produced
However, foreign aid is more difficult to cut – because the 0.7 per cent figure is legally protected.
Today, Ms May’s spokeswoman made clear that overseas aid would be part of the review, saying there were no commitments “beyond” the current Parliament.
She said: “That will be the point when we set out our commitments moving forward - and commitments that will rightly be left for the manifesto.”
Ministers have already hinted the review could see the scrapping of the so-called ‘triple lock’ protecting pensioner incomes.
Priti Patel, the International Development Secretary, has been accused of planning to privatise much of the aid budget, by funnelling the money through the private equity arm.
CDC Group – formerly the Commonwealth Development Corporation – has been criticised for pouring money into gated communities, shopping centres and luxury property in poor countries.
A draft Bill will allow the Department for International Development (DfiD) to hike the amount it can give to CDC Group from £1.5bn to £6bn.
Ms Patel also sparked controversy when she suggested some of the aid budget will be switched to help win post-Brexit trade deals.
