UK aid budget 'not finalized’ well into the financial year

The U.K.’s aid budget has not yet been agreed upon, with almost a quarter of the financial year gone, Foreign Secretary James Cleverly has conceded — sparking fresh fears of painful decisions to come. Cleverly revealed Tuesday that he is still “negotiating with the Treasury” over what he can spend in 2023-24 after the huge costs of refugees in the U.K. — which swallowed up 29% of overseas development assistance, or ODA, last year — have been met. Sarah Champion, chair of the parliamentary inquiry quizzing Cleverly, called the delay “concerning,” noting that a similar situation a year ago led to the Foreign, Commonwealth & Development Office halting grants. “One thing we keep hearing the sector needs is predictability. If you haven’t got that predictability, you can’t cascade that down,” she told him. Champion said the uncertainty over so-called in-donor refugee costs was no excuse, reminding the Foreign Secretary that “other G7 countries have got the same uncertainty.” “We have been here for over a year now, so one would hope you would have a clearer strategy, particularly a financial one, in place,” she said, at a meeting of the Commons International Development Committee. In March, FCDO released an indicative budget that forecast a further £1.5 billion ($1.91 billion) cut in its aid spending during this financial year, which would amount to a 16% slash. But Cleverly told the committee: “We are still going through the process of finalizing budgets. We are negotiating with the Treasury, as all government departments do.” He called the refugee costs “unprecedented,” but argued the “headline figures” provided had given aid organizations “a strong steer” about likely funding in order to “unlock the work they are doing around the world.” During the evidence session, the Foreign Secretary also: • Argued a new committee co-chaired by development minister Andrew Mitchell and the number two minister at the Treasury would provide greater “control” over ODA spending in the future. • Insisted the folding of the Department of International Development, or DFID, into a larger FCDO had been “vindicated” by greater coordination with foreign policy staff — while not denying the U.K.’s “reputation” as an aid powerhouse had been damaged. • Said a new deputy chief civil servant at the FCDO will be the “accounting officer” for development spending — increasing the level of separation from its main work. • Was unable to say if £1.5 billion pledged — eventually — by the U.K. for global nutrition would all be delivered, telling the committee he would “have to look” at the commitment. Stephanie Draper, the chief executive at Bond, the U.K. network for NGOs, said: “The government needs to find creative ways to support refugees in the UK and manage unpredictable costs without raiding the already diminished UK aid budget.”