Source · Select Committees · International Development Committee
Recommendation 15
15
Rejected
Require HM Treasury to reallocate all future unspent ODA back to the FCDO.
Conclusion
The FCDO must make formal representation to HM Treasury that any unspent ODA allocated to other Government departments is channelled back through the FCDO to continue its vital humanitarian and development work, and to ensure that overall ODA spending does not fall even further to below 0.3%. This representation must not be on a case-by-case basis, but requesting a commitment that all unspent ODA in future will be reallocated back to the FCDO. (Recommendation, Paragraph 48)
Government Response Summary
The government rejects the recommendation, explaining that ODA Department Expenditure Limit totals will no longer be adjusted for GNI fluctuations, meaning the FCDO's budget is no longer automatically exposed to other department's spending, thus providing greater predictability.
Government Response
Rejected
HM Government
Rejected
Disagree. At Spring Statement 2025, the Government confirmed that financial year ODA Department Expenditure Limit (DEL) totals will not be adjusted for GNI fluctuations to improve budget stability. This means FCDO’s ODA budget will no longer be automatically exposed to the volatility of GNI fluctuations or ODA spending by other departments, including changes in asylum costs, providing greater predictability to FCDO budgets. This approach helps provide best VfM for UK taxpayers and delivers mutual benefits at home and overseas. The Government is committed to meeting the ODA budgets that have been set out.