Why Starmer's cuts to UK aid budget will hurt both at home and abroad

Cutting the UK's foreign aid spending will cost lives and make costlier military interventions more likely in the future, International Rescue Committee UK's Khusbu Patel argues

by: Khusbu Patel

5 Mar 2025

Department for International Development workers delivering UK aid

Around £6bn will be slashed from the UK's foreign aid budget to fund greater defence spending, taking spending from around 0.5% of gross national income to 0.3%. Image: Department for International Development

In a world where the news cycle moves at breakneck speed, last week’s announcement of a £6bn cut to the UK’s overseas aid budget to bolster defence spending – and the subsequent resignation of the international development minister Anneliese Dodds – are already fading from headlines.

The minister’s resignation is a stark sign of just how much this move undermines Britain’s long-standing commitment to aid, but the real story lies elsewhere – among the millions of people worldwide who will bear the brunt of these brutal cuts.

Today, 300 million people worldwide are in humanitarian need, the highest levels we have ever seen. These people aren’t just statistics; they’re families like yours and mine facing unimaginable hardship. They’re children unable to attend school, parents unable to feed their families, and communities devastated by conflict and climate disasters.

Like Falmata Mohammed, a young mum from Borno State, Nigeria, who was displaced from her home alongside her husband and children following years of violent insurgency from Boko Haram. She visited an International Rescue Committee health centre – funded with UK aid – seeking malnutrition treatment for her son. Thanks to the healthcare workers at the centre, her son now thrives. This life-saving intervention not only helped her child survive but gave her family hope in their darkest hour.

This is the reality of UK aid: practical, effective interventions that tackle problems at their source. Slashing the aid budget is not just a numbers game – it’s a decision that will cost lives.

The truth is UK aid isn’t charity – it’s a strategic investment that benefits us all.

Smart investment in humanitarian aid has long been part of Britain’s foreign policy playbook, precisely because when we help crisis-affected states build resilience against violence, disease and climate change, we help prevent the conditions that lead to conflict, displacement and insecurity.

The UK has also long been regarded as a leader in international development, known for its strategic, cost-effective and impactful aid programmes. UK aid is backed by decades of expertise, which helps further enhance programmes, making them even more effective and better tailored to the needs of specific communities. With America stepping back from global humanitarian leadership, Britain’s role and know-how is more valuable than ever. This targeted approach not only helps people in immediate need, it also serves our long-term interests. As defence and aid experts alike have pointed out, every pound spent on effective development reduces the likelihood of costlier military interventions later.

What is particularly concerning about this latest £6bn cut is that it comes atop an already shrinking aid budget. A significant portion is already spent on domestic refugee costs, rather than reaching the world’s most marginalised people. This double diversion – with aid funding being siphoned to defence and Home Office budgets – is rapidly eroding the UK’s capacity to respond where humanitarian needs are greatest.

To alleviate the impact of this latest round of cuts, the government must end the use of UK aid on domestic refugee costs, currently the largest proportion of the overall budget. We urge the government to establish a sustainable, separate funding system that ensures a humane asylum response while preserving the UK’s ability to meet global humanitarian needs.

Secondly, while budgets are strained even further, how the UK spends aid will become more important than ever. Quality, flexible, multi-year funding which is accessible to local organisations and multilateral institutions alike will offer the UK taxpayer the best value for money in efforts to reduce humanitarian needs and address extreme poverty.

Finally, while the government has committed to ongoing support in Sudan, Gaza and Ukraine, this still leaves many places facing diminished support – a devastating retreat from our humanitarian responsibilities. The government must ensure aid is ring-fenced for support in fragile and conflict-affected countries where UK aid is a critical lifeline.

By properly funding defence, asylum systems, and international aid from their own respective budgets, we fulfil our moral obligations to those people in need both here in the UK and overseas; while ensuring taxpayer money is used most effectively so each pound can have its intended impact.

We live in a world where interconnected crises are the norm. From pandemics to climate disasters, from conflicts to displacement, the challenges we face do not respect borders. Now is not the time to retreat. Now is the time for Britain to step up, honour its commitments, and continue its proud legacy of international leadership. Because when we invest in aid, we invest in a safer, more stable and ultimately more secure world for all.

Khusbu Patel is the acting executive director of International Rescue Committee UK.

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