Extra detail on the UK's international development budget up to
March 2030 has been set out in yesterday's Spring Statement,
alongside new plans to ensure it is focussed on UK objectives and
provides the best value for money.
This follows the Prime
Minister's announcement last month that the UK government
will increase spending on defence to 2.5% of Gross Domestic
Product (GDP) from April 2027, funded from reductions in the
Official Development Assistance (ODA) budget.
Figures set out in the Spring
Statement show how the UK will go from spending around 0.5%
of the UK's Gross National Income (GNI) on international
development this financial year (2024/25) to 0.3% of GNI by April
2027, with the budget gradually reduced over three years to help
smooth the transition.
The government is to accelerate plans to modernise the UK's
approach to development, putting partnerships first, and
mobilising private capital for international development and
climate projects by strengthening links with the financial sector
and international partners.
The Statement also confirmed the UK will now set annual aid
budgets from 2027 onwards in cash terms and based on GNI
forecasts at the Spending Review, and these budgets will not be
adjusted for GNI fluctuations in future years.
Minister for Development confirmed as a result of
this change, the Foreign Commonwealth and Development Office
(FCDO) will no longer hold the ODA ‘spender and saver of last
resort' role. This will bring more stability and certainty.
It will also increase the predictability of international
development budgets, which will no longer be automatically
exposed to the volatility of GNI fluctuations or spending by
other government departments, including demand-driven refugee and
asylum costs in the UK.
Minister for International Development, , said:
Our work on development is critical for the UK's interests,
making the world safer, more secure and better off. We have to
work harder than ever to make sure it delivers for the British
public and our Plan for Change.
We are committed to modernising our approach with less money:
working with our partners in new ways to maximise our impact.
These latest changes to the ODA budget will give greater
certainty and stability, helping us provide the best value for
money for taxpayers.
She has set out the changes in a letter to the International
Development Committee (IDC). For 2025/26, the letter
confirms FCDO's plans to allow for critical development work to
continue, to honour live contractual agreements with partners,
and to deliver on the Prime Minister's commitment for the UK to
continue to play a key humanitarian role.
Our development investment is part of our hard power, building a
stable international environment that strengthens UK safety,
security and prosperity, necessary for the delivery of all the UK
government's Missions.
In her letter to the IDC, also confirmed a new
review of cross-government development programming to ensure it
delivers on UK objectives and provides best value for
money.
Notes to editors
