Policy Updates

On September 27, 2024, The UK government released its final ODA statistics. The statistics show that the UK ODA budget rose by 20% between 2022 and 2023 to reach GBP15. 3 billion (US$ 18.3 billion), 0.58% of GNI.

A large share of UK ODA was spent on housing refugees inside the UK, with GBP4.3 billion (US$5.2 billion) or 28% of the UK ODA budget in 2023. The statistics also show that there was a significant increase in the share of UK ODA spent via multilateral organizations which rose from GBP3.1 billion (US$3.7 billion) in 2022 to GBP5.4 billion (US$6.5 billion) in 2024, predominately due to a large payment to the World Bank’s IDA.

UK bilateral ODA spend was GBP10 billion (US$12 billion), 65% of total UK ODA, and UK core funding to multilateral organizations was GBP5.3 billion (US$6.4 billion), 35% of total UK ODA.

In terms of top bilateral sectors, the largest amount of funding was spent on ‘Refugees in Donor Countries’ in 2023, followed by the humanitarian sector’ and ‘Multisector/ Cross-cutting’ sector.

In terms of geographic disbursements, Africa increased its share of region-specific bilateral ODA moving to 46% (up from 42%) but the volume of funding fell marginally. The top three recipients of UK country specific bilateral ODA were Ukraine (GBP 250 million/US$299 million), Ethiopia (GBP164 million/US$196 million), and Afghanistan (GBP115 million/US$137 million).

The overall increase in ODA, however, masked some significant decreases. The share of bilateral ODA received by LDCs has fallen to 47.2% in 2023 compared to 53% in 2018. Bilateral ODA to health, humanitarian, education, and water and sanitation also saw steep declines.

• Humanitarian ODA stood at GBP878 million (US$1 billion) in 2023, a fall of 21% compared to 2022, 43% since 2020 and its lowest level since 2014;
• Health ODA stood at GBP764 million (US$843 million) in 2023, a fall of 21% compared to 2022, 52% since 2020 and its lowest level since 2014;
• Education ODA stood at GBP346 million (US$414 million) in 2023, a marginal decrease compared to 2022, but a decrease of 64% since 2016 and its lowest level since 2009; and
• WASH fell to just GBP38 million (US$45 million), a decrease of 17% compared to 2020, 82% since 2018 and its lowest level since 2009.

On 26 September 2024, one of the UK Conservative party leadership candidates Robert Jenrick vowed to cut ODA to countries that did not take back refused asylum seekers.

Jenrick is one of four potential Conservative Party leadership candidates who are currently making their case to Conservative Party members for why they should be elected the new leader of the Conservative Party.

Jenrick, formerly the Minister for Immigration in the last Conservative government, said that he would cut off ODA from countries that do not take back people who fail in their asylum claims, as part of a package of measures designed to increase the number of people being deported by 100,000 a year.

On September 25, 2024, Japanese Prime Minister Kishida Fumio delivered a video message during the side event Global Action on AMR: Advancing Healthy Longevity and Sustainability under UHC, hosted by the HGPI, in collaboration with multiple organizations held in conjunction with the 79th UNGA High-Level Meeting on AMR.

In his message, he emphasized several critical points regarding Japan's commitment to tackling AMR.

• Addressing the silent pandemic: Prime Minister Kishida highlighted the rise of AMR as a significant threat to global health security, estimating that around 5 million deaths are linked to AMR each year. He warned that the economic impact could reach annual losses of up to 3.4 trillion dollars in GDP by 2030;
• One Health approach: He underscored the complexity of AMR, which encompasses human, animal, food, and environmental health, reiterating the necessity of cross-sectoral collaboration through a One Health approach;
• International cooperation: Kishida expressed confidence in the global community's commitment to addressing AMR, referencing the collaborative efforts of organizations like FAO, WHO, OIE, and UNEP in developing comprehensive strategies;
• G7 commitment: The Prime Minister mentioned the discussions on AMR during the G7 Hiroshima Summit, where leaders demonstrated political will and reaffirmed their commitments to AMR action, including a joint One Health expert meeting hosted by Japan; and
• Future actions: Kishida anticipated that the political declaration from the upcoming high-level meeting on AMR would serve as a crucial catalyst for global actions against AMR, and reiterated Japan's intention to lead efforts in the international arena.

Dame Sally Davies, the UK Government Special Envoy on AMR, delivered a message that underscored the urgency of the AMR crisis. She emphasized that over 1.1 million people died from AMR in 2021, with projections indicating that by 2050, the death toll could exceed 39 million. She stressed the need for access to antibiotics, sustainable financing, and educational initiatives to combat AMR effectively. She called for the establishment of an independent science panel on AMR to assess evidence and inform future interventions.

On 23 September, 2024, the UK FCDO Minister David Lammy called for reform of the multilateral system at the UN Summit of the Future in New York.

Lammy noted that the Summit for the Future provided a chance for Member States to demonstrate responsible global leadership and ensure everyone’s needs are met, especially the most vulnerable.

Lammy proposed:

• Greater collective actions to prevent and end conflict, more significant support for international rule of law, and a more representative Security Council;
• Urgent action on the climate and nature crisis – here, he referenced the need to build a Global Clean Power Alliance; and
• Modernizing the approach to development to move away from a paternalistic attitude to one based on partnership and putting Indigenous people and local communities, including women and girls, at the center of decision-making on development programs.

On 20 September 2024, 71 UK CSOs, faith groups, and international development and climate NGOs wrote a public letter to the UK Prime Minister calling for increased ambition on international climate finance and domestic action at UNGA and COP 29.

The groups' called for the UK Prime Minister to:

• Restore the UK's reputation, return UK ODA commitments to 0.7% ODA/GNI and reverse last year’s changes to the way ICF is counted;
• Champion a New Collective Quantified Goal on Climate Finance that delivers the scale of public finance needed;
• Commit to providing future UK ICF that is new and additional by putting in place polluter pays measures to generate new public finance fairly; and
• Raise ambition with a UK 2035 Nationally Determined Contribution NDC that sets a new global benchmark commensurate with the:abbrUK’s responsibilities and the urgency to keep 1.5°C alive.

On September 20, 2024, the UK Foreign Secretary David Lammy pushed for an emergency top-up to the ODA budget by the UK Chancellor of the Exchequer Rachel Reeves in her forthcoming budget to cover the ballooning costs of supporting asylum seekers in the UK, and ensure that the ODA budget is not further eviscerated.

Last year, the UK government spent GBP4.3 billion (US$5.2 billion) hosting asylum seekers and refugees in the UK, more than a quarter of its total GBP15.4 billion (US$18.4 billion) overseas assistance budget.

Lammy will be asking for a top-up, much like the one given by the former Conservative Chancellor Jeremy Hunt who provided GBP2.5 billion (US$3 billion) between 2022 and 2024, to cover some of the costs to the ODA budget of housing asylum seekers in the UK.

In the longer term, some Foreign Office officials would like to see the costs capped or paid for by the Home Office.

On September 18, 2024, the UK Chancellor of the Exchequer Rachel Reeves gave her backing to the Invest in Women Taskforce, which aims to create one of the world’s largest investment funding pools for female founders.

The task force seeks to establish a funding pool of more than GBP250 million (US$299 million) for female-founded businesses through private capital. Reeves noted that support for women and their contribution to the economy is a personal priority as the UK's first female Chancellor, and she plans to play an active role in steering the Taskforce priorities and objectives by attending its meetings and events.

On International Equal Pay Day, Reeves hosted a reception in partnership with the Fawcett Society. The reception convened a group of female business leaders from across the UK’s foremost growth industries, such as financial services, technology, and the creative sector.

At the reception, Reeves set out her agenda for women in the economy, vowing to improve economic opportunities available to women and close the gender pay gap by strengthening rights at work and investing in childcare.

On September 17, 2024, the UK FCDO Minister David Lammy used his first major policy speech to highlight the importance of tackling climate and nature emergencies.

Lammy noted that while conflicts in Ukraine and the Middle East have dominated his time, his primary focus will be tackling the most profound and universal threat to global order – the climate and nature emergency.

Lammy identified three key priorities moving forward:

• Building a Global Clean Power Alliance—This alliance will focus on scaling up global investment;
• Unlocking more climate and nature finance. Lammy noted that Africa is on the climate frontline yet receives just 3% of climate finance flows and debt services, accounting for an average of 10% of Africa’s GDP. Lammy will work to ensure London is a green global financial center, unlocking much-needed private sector flows and leading on international institutional reform; and
• Reverse the decline in global biodiversity by bolstering global efforts to protect 30% of the planet’s lands and oceans, securing an agreement on a Plastics Treaty, expanding successful development programs that protect biodiversity, and launching a new research program on water and nature.

Lammy concluded that there would be no global stability without climate stability.

On September 11, 2024, UK Foreign Minister, David Lammy visited Kyiv, Ukraine and committed GBP600 million (US$781 million) in support for Ukraine.

The funding included GBP242 million (US$290 million) of existing commitments made for 2024-2025 for humanitarian, energy, and stabilization needs, as well as support for reform, recovery, and reconstruction.

The commitment also included GBP484 million (US$634 million) of loan guarantees for World Bank lending before 2025 to bolster economic stability in Ukraine. The loan guarantee is the second deployment of the US$3 billion package the UK committed to at the London Ukraine Recovery Conference in 2023.

Lammy also announced the first investment into Ukraine by BII, the UK’s development finance institute within the G7-initiated Ukraine Investment Platform. BII is slated to provide GBP30 million (US$36 million) of support to the EBRD’s Trade Facilitation Program to help support the flow of critical goods, including food.

On September 9, 2024, UK Foreign Minister David Lammy announced three strategic reviews aimed at supporting Britain's reconnecting to the global world and delivering on the government’s five international missions.

The reviews are intended to focus on:

• The UK’s global impact;
• How to maximize the benefits of the FCDO joint integrated development diplomacy model in its development work; and
• Economic capability in diplomacy.

Former Permanent Secretary of the Department for International Development and Deputy Governor of the Bank of England Baroness Minouche Shafik will lead the review on maximizing the UK’s combined diplomatic and development expertise in its international development work.

The review will focus on how to modernize the UK’s development offer in a rapidly changing global context, and ensure the UK has the right capabilities to deliver for the future, covering three key areas:

• How to improve development capability, including recruitment and retention of staff in key areas;
• How the FCDO assures strategic alignment, value for money and appropriate use of public funds; and
• The UK’s comparative advantage and strategic direction.

Dean of the Blavatnik School of Government and professor of global economic governance at the University of Oxford Ngaire Woods will lead the review on the UK’s global impact. The review will explore ways of strengthening the UK’s relationship with old and new partners and assess the geopolitical opportunities and shifts.

Former Permanent Secretary of the Department for International Trade and the Department for Business, Innovation, and Skills Sir Martin Donnelly will lead the review on how diplomacy can deliver on UK jobs and growth. The review will also assess the FCDO’s role in developing international economic partnerships.

Government officials within the FCDO and other government departments will support the reviews. The outcomes are expected to be delivered by the end of 2024, with further work on the development review continuing into early 2025.