The United Kingdom government’s aid budget freeze has been extended until Oct. 31, amid political and economic chaos engulfing the country.
“I am writing to inform you that unfortunately the FCDO has had to extend the temporary pause on non-essential ODA spending until 31 October 2022,” wrote International Development Minister Vicky Ford to Sarah Champion, chair of the International Development Committee.
The Halloween date is when the new chancellor, Jeremy Hunt, is expected to announce the government’s spending plans — effectively announcing departmental budgets — alongside the bumped-up release of the U.K.’s economic forecasts by the Office for Budget Responsibility.
The U.K. aid freeze began in July after the resignation of former Prime Minister Boris Johnson, placing the stretched budget under more pressure after its reduction from 0.7% to 0.5% of national income, and throwing the development sector into further disarray. The aid budget is under myriad pressures as Prime Minister Liz Truss fights for her political survival.
“The decision to extend the pause has not been taken lightly. However, extending the pause provides us with the space to make decisions about spending priorities as we work through how best to manage ODA budget pressures with HMT. We are working to resolve this as quickly as possible,” continued Ford. There are impact analyses monitoring the spending freeze, according to the letter.
What happens next: The minister’s letter said exemptions would remain in place for aid spending “vital to protect against immediate threat to life and wellbeing,” spending that would prevent the need for more aid, or spending to “prevent delays to accessing healthcare, primary education, sanitation and clean water.” The government would also be “considering the value for money of any decisions.”
But Champion said the committee “still isn’t clear what this means in practice” and would be seeking further clarification on what the Foreign, Commonwealth & Development Office considers essential and not essential from the department’s Permanent Under-Secretary, Sir Philip Barton.
About the author
William Worley@willrworley
Will Worley is the Climate Correspondent for Devex, covering the intersection of development and climate change. He previously worked as UK Correspondent, reporting on the FCDO and British aid policy during a time of seismic reforms. Will’s extensive reporting on the UK aid cuts saw him shortlisted for ‘Specialist Journalist of the Year’ in 2021 by the British Journalism Awards. He can be reached at william.worley@devex.com.
