Prime Minister Kier Starmer announces cut to Official Development Assistance (ODA) to fund defence – what we know so far

Prime Minister Kier Starmer today announced a cut to the ODA budget from 0.5% of Gross National Income (GNI) to 0.3%, its lowest level in 25 years. 

In a statement to the house of commons, Mr Starmer announced that this cut will fund an increase in defence spending from 2.3% of GNI to 2.5% from 2027 following pressure from President Donald Trump to increase defence spending across Europe.  

Another blow to ODA 

This cut is the latest hit to the ODA budget, which just five years ago was set at 0.7% of GNI. The budget was initially cut to 0.5% by then chancellor Rishi Sunak in November 2020, with successive governments stating that the budget would return to 0.7% “when the fiscal situation allows.” However, the criteria introduced by the previous government and adopted by the Labour government was deemed as almost impossible to achieve.  

On top of the cuts, the budget took a hit from the merging of Department for International Development into the Foreign, Commonwealth and Development Office, which was seen as a failure by many internally. Much of the budget from the previous three years has also been reallocated to cover expensive hotel and housing costs for asylum seekers in the UK, with 28% being spent on this in 2023.  While this support is vital, we have consistently urged that this should come from outside the already depleted ODA budget. 

A manifesto promise broken. . . Again 

In their manifesto ahead of last year’s election, Labour promised to “restor(e) development spending at the level of 0.7 per cent of gross national income as soon as fiscal circumstances allow.” It also stated, “Labour will turn the page to rebuild Britain’s reputation on international development with a new approach based on genuine respect and partnership.” This decision leaves that commitment in tatters and raises questions about how the UK will be able to deliver on its global commitments such as their recent decision to co-host the Global Fund replenishment.  

Ahead of the 2019 election, the Conservatives said in their manifesto “We will proudly maintain our commitment to spend 0.7 per cent of GNI on development.”  

Back-to-back governments have broken their manifesto promises on ODA.  

Our reaction 

Romilly Greenhill, CEO of Bond, the UK network for organisations working in international development and humanitarian assistance said: 

“This is a short-sighted and appalling move by both the PM and Treasury. Slashing the already diminished UK aid budget to fund an uplift in defence is a reckless decision that will have devastating consequences for millions of marginalised people worldwide. 

Following in the US’s footsteps will not only undermine the UK’s global commitments and credibility, but also weaken our own national security interests. Instead of stepping up, the UK is turning its back on communities facing poverty, conflict and insecurity, further damaging its credibility on the global stage. 

Tragically, this cut is even deeper than the last Conservative government’s and will destroy this Labour government’s reputation, tearing to shreds their previous manifesto commitments to rebuild the UK’s international reputation as a reliable global partner.” 

Reaction from MPs 

Though Liberal Democrat leader Ed Davey was supportive of the increase to defence spending, but stated that its preferable the increase was funded by seized Russian assets. Starmer respondent by stating that the seized assets were already committed to Ukraine. 

Davey later tweeted that “cutting soft power and piling up problems for the future.” 

The PM is doing the right thing increasing defence spending – I have been callling on the govt to do this for years.

Cutting international aid is cutting soft power and piling up problems for the future as Putin and Xi fill the gap left by Britain.

— Ed Davey (@EdwardJDavey) February 25, 2025

Labour MP for Rotherham & Chair of the International Development Select Committee was more damning, tweeting “Cutting ODA from 0.5% to 0.3% by 2027 is deeply shortsighted and doesn’t make anyone safer.” 

Cutting ODA from 0.5% to 0.3% by 2027 is deeply shortsighted and doesn’t make anyone safer.

The deep irony is that development money can prevent wars & is used to patch up the consequences of them, cutting this support is counterproductive and I urge the government to rethink.

— Sarah Champion (@SarahChampionMP) February 25, 2025

Save the Children CEO Moazzam Malik said in a statement that “It is a betrayal of the world’s most vulnerable children and the UK’s national interest.” 

A statement from our CEO @MoazzamTMalik on the news that the government is cutting the UK aid budget to fund an increase in defence spending:

“We are stunned by this decision to cut the aid budget in order to increase military spending. It is a betrayal of the world’s most… pic.twitter.com/Rk2PA56Ljd

— Save the Children UK (@savechildrenuk) February 25, 2025

Former Labour minister and CEO of International Rescue Committe David Milliband said “The global consequences of this decision will be far reaching and devastating for people who need more help not less.” 

What Bond is doing 

• Bond will be asking for an impact assessment and expressing our concerns to the PM and chancellor Rachel Reeves condemning the move and urging for a reversal of this decision.  

• Convening member CEOs to discuss our next moves as a sector 

• Coordinating the sector’s media response.  

• Lobbying MPs and other ex-Ministers and PMs to speak out against the cuts.