FCDO Programme Allocations

Statement

The FCDO Annual Report and Accounts 2021 to 2022 explained that the department’s Official Development Assistance (ODA) spending plans needed to be revisited to ensure all ODA-eligible spending was managed within 0.5% of Gross National Income (GNI). This was in the context of the significant and unexpected costs incurred to support the people of Ukraine and Afghanistan escape oppression and conflict and find refuge in the UK, and others seeking asylum. The Government provided additional resources of £1bn in 22-23 and £1.5bn in 23-24 to help meet these unanticipated costs, and we remain committed to returning ODA spending to 0.7% of GNI when the fiscal situation allows, in line with the approach confirmed by MPs in July 2021 which provides a clear measure assessed against independent forecasts.

I would now like to update the House on our spending in 22-23 and plans for 23-24 allocations. The tables below set out the top-level allocations for those years. These numbers are indicative and subject to revision. In deciding these allocations, we have applied the principles described in the Foreign Secretary’s 22 November 2022 statement, ‘FCDO Update’. These are: to focus spend on the International Development Strategy priorities; to meet our financial commitments to multilateral partners; and to empower FCDO officials to decide how to adjust bilateral programmes in line with our approach to prioritisation.

The Government remains committed to delivering the priorities set out in the International Development Strategy, and the strategy’s spending targets where funding allows. UK development spending has funded work to build the sustainable foundations for prosperity and security around the world. Achievements include supporting women and girls’ education and rights, as set out in the new International Women and Girls Strategy, jobs and infrastructure through British Investment Partnerships, and the launch of new Just Energy Transition Partnerships. Our development spending has also provided life-saving food, water, healthcare and sanitation around the world, as well as a rapid package of support for both Turkey and Syria in response to the devastating earthquake.

In 24-25 we plan to spend £1bn on urgent humanitarian needs and expect to mobilise up to £8bn of UK-backed financing a year under British Investment Partnerships by 2025. We remain committed to the cross government International Climate Finance (ICF) target of spending at least £11.6bn by 2026. We continue to work towards the IDS target on restoring funding for vital work on women and girls, and the new target set out in the FCDO’s International Women and Girls Strategy 2023 to 2030 for at least 80% of the FCDO’s bilateral aid programmes to have a focus on gender equality by 2030.

I want to acknowledge to the House that the revisions to FCDO’s ODA budget in 22-23 and 23-24 have necessitated difficult choices as our spending plans have changed. Throughout the revision process we have worked closely with our partners to understand the best way to allocate our revised budgets to deliver the most positive development outcomes possible for those who need our help. I am confident that our allocations will achieve this aim.

The Integrated Review 2023 reaffirms our commitment to the IDS and sets out our ambition to re-invigorate our global leadership on international development, by stepping up our contribution to the UN Sustainable Development Goals, delivering our patient approach and strengthening how development is delivered across government. The ODA Board, which I jointly chair with the Chief Secretary to the Treasury, will more effectively scrutinise ODA spending, ensuring it delivers for UK objectives overseas and represents good value for money.

The FCDO Annual Report and Accounts 2022 to 2023, due to be published later this year, will include full breakdowns of the 23-24 allocations, including by country. The UK’s Statistics on International Development will be published next week and will give a provisional overview of all UK ODA spend in 2022.

FCDO 22-23 ODA ALLOCATIONS

FCDO 23-24 ODA ALLOCATIONS