The U.K. government has been accused of quietly pocketing tens of millions of pounds meant for international development every month through an “accounting sleight of hand.”
Ministers have acknowledged levying Value Added Tax, or VAT, on payments for housing approximately 50,000 asylum seekers in emergency accommodation within U.K. borders — a cost taken, controversially, from the much-reduced aid budget.
Rishi Sunak has put that cost at £6 million ($7.55 million) a day, which means — with VAT charged at 20% — tens of millions of pounds are flowing back to the Treasury from Overseas Development Assistance, or ODA, each month.
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About the author
Rob Merrick
Rob Merrick is the U.K. Correspondent for Devex, covering FCDO and British aid. He reported on all the key events in British politics of the past 25 years from Westminster, including the financial crash, the Brexit fallout, the "Partygate" scandal, and the departures of Boris Johnson and Liz Truss. Rob has worked for The Independent and the Press Association and is a regular commentator on TV and radio. He can be reached at rob.merrick@devex.com.
