The United Kingdom’s new Labour government is poised to make fresh aid budget cuts within weeks of taking power, after almost £1 billion ($1.28 billion) was diverted to housing asylum-seekers in the country.
The money is being “surrendered” by the Foreign, Commonwealth & Development Office to meet domestic refugee costs — a controversial practice Labour criticized before winning July’s election, but has chosen to continue.
It means the FCDO’s official development assistance budget will be £8.31 billion in the 2024-2025 financial year — £700 million less than the £9.08 billion it spent in 2023-2024 — unless the Treasury provides a bailout later this year.
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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.
