Thread by @TheIFS, The government’s reduction in overseas aid funding from 0.7% to 0.5% of [...]

Institute for Fiscal Studies

TheIFS

The government’s reduction in overseas aid funding from 0.7% to 0.5% of national income equates to an estimated reduction of £4.4bn in 2021, or 29% compared to the 0.7% target.

Read our new analysis of the cuts to the UK Aid budget with @CGDev: https://www.ifs.org.uk/publications/15392

This reduction takes the UK’s aid spending down to a level not seen for over a decade: the last time it was below 0.5% was in 2008. Existing commitments in the aid budget mean that some spending areas will be cut by much more than others.

https://www.ifs.org.uk/publications/15392

The government has stated this is a temporary change owing to the current fiscal situation.

But ‘turning spending off and on again at short notice’ could have severe consequences for effective aid spending and projects in the long term. https://www.ifs.org.uk/publications/15392

The UK’s reduction in aid spending -

In the Spending Review last November, the government announced that 2021 overseas aid expenditure would be 0.5% of national income – a 29% reduction on the legislated 0.7% target which was met each...

https://www.ifs.org.uk/publications/15392

"If the intention is really to stick at the new lower level of spending, it is equally incumbent on government to be honest and tell us so" - @PJTheEconomist's article on this issue is now free to read on our website > https://www.ifs.org.uk/publications/15394

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