Source · Select Committees · International Development Committee
Recommendation 1
1
Paragraph: 8
The reduction of UK Official Development Assistance (ODA) from 0.7% to 0.5% of annual Gross...
Conclusion
The reduction of UK Official Development Assistance (ODA) from 0.7% to 0.5% of annual Gross National Income (GNI) from 2021 necessitates an approach which ensures that UK ODA is spent in a more strategic and effective way than ever before. This approach should be reflected in the priorities set and the programmes funded by the FCDO in relation to the secondary impacts of covid-19. Drawing the right lessons from the multiple, significant changes since January 2020 is essential to ensuring an effective, long-term response to the secondary impacts of covid-19. We ask the FCDO to tell us how they or the Government decided on which programmes and themes to prioritise, how they assessed the impact of their decisions to cut funding on recipient countries and populations, and how they intend to strengthen their engagement with NGOs and private suppliers during the implementation of the Government’s announced reduction of UK ODA to 0.5% of GNI.
Paragraph Reference:
8
Government Response
Acknowledged
HM Government
Acknowledged
The impact of the pandemic on the UK economy has forced the Government to take the tough but necessary decision to temporarily reduce how much we spend on ODA, moving to a target of spending 0.5% of Gross National Income (GNI), rather than 0.7%. This is a temporary decision, and we will return to the 0.7% target when the fiscal situation allows. We remain a world-leading donor and based on current GNI forecasts will spend over £10 billion of ODA in 2021. The Government strongly agrees with the Committee’s assessment that now, more than ever, it is essential that UK ODA is spent in the most strategic and effective way possible. We are committed to ensuring the maximum impact and value for money from our aid budget. That is why the Foreign Secretary announced a new strategic framework for how aid is spent across government on 25 November, to ensure a more strategic and integrated approach to our allocation of ODA. This will allow us to drive greater impact from our ODA spending, sharpening the focus of our aid on areas where the UK can make the difference to poverty and achieving the Sustainable Development Goals (SDG’s). Eighth Special Report of Session 2019–21 3 In January this year, the Foreign Secretary completed a cross-Government review of how ODA will be allocated against the government’s priorities for 2021 and explained the outcomes of this review in a written statement to Parliament on 26 January. The review has sharpened the focus of our ODA on seven core priorities in the overarching pursuit of poverty reduction: climate change and biodiversity; covid-19 and global health security; girls’ education; science, research and technology; open societies and conflict resolution; humanitarian preparedness and response; and trade and economic development. These priorities represent the areas where the UK can make the most difference to the world’s most important challenges, both for our citizens and our partners. As made clear in the Integrated Review, published on 16 March, a new international development strategy will build on these seven strategic priorities and will ensure close alignment of UK aid from 2022 onwards with the Government’s major national security and international policy objectives, set out by the Integrated Review. FCDO relies heavily on the capacity, expertise, resilience and flexibility of our supply partners—both in the private and Civil Society sectors. Without them we cannot deliver UK aid. Throughout the pandemic, FCDO has worked with British charities and businesses to help them manage impacts on their organisations and maintain delivery of essential programmes wherever possible. All existing channels through which Non-Governmental Organisations (NGOs) and other partners engaged with the former Department for International Development (DFID) have been maintained, including through our supplier relationship programme and through regular roundtables with Civil Society, such as one Lord Ahmad chaired in December 2020. Further meetings are planned in early 2021.