UK Labour makes fresh aid budget cuts within weeks of taking power

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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