UK Official Development Assistance departmental allocations 2021-22
The FCDO has responsibility for delivering £8,115m of Official Development Assistance (ODA) spend this year, approximately 80% of total UK ODA. I have recently concluded the FCDO’s internal business planning process to allocate this budget for 2021/22 in accordance with UK strategic priorities against a challenging financial climate as a result of COVID. This statement updates the House on the conclusions of that process.
Throughout the business planning process, we strived to ensure that every penny of the FCDO’s ODA spend brings maximum strategic coherence, impact and value for taxpayers’ money.
The resulting portfolio marks a strategic shift, putting our aid budget to work alongside our diplomatic network, our science and technology expertise and our economic partnerships in tackling global challenges. We will focus on core HMG priorities for poverty reduction, including getting more girls into school, providing urgent humanitarian support to those who need it most, and tackling global threats like climate change, COVID recovery and other international health priorities. Based on OECD data for 2020, the UK will be the third largest donor within the G7 as a percentage of GNI.
The Integrated Review has helped guide the process, by setting out how an independent and sovereign global Britain will act as a force for good and use its influence to shape the future international order. To deliver that vision I have allocated resources to the seven priorities I set out to Parliament on 26 November:
A further £3,159m will meet the government’s cross-cutting contributions to multilateral partners and global funds, including our pledge to remain the largest donor to IDA19, the African Development Fund, and other multilateral development banks; support Arms-Length Bodies such as the British Council; and cover FCDO operating costs. This is complemented by the ODA spent by other government departments, which I set out in a Written Ministerial Statement on 26 January 2021.
Within this framework, I have also ensured that the UK is able to exert maximum influence as a force for good in Africa and strategically tilt towards the Indo-Pacific. FCDO will spend around half its bilateral ODA budget in Africa, where human suffering remains most acute, including a major shift to East Africa to reflect the UK’s unique role and clear national strategic interest. One third of FCDO bilateral ODA will be spent in the Indo-Pacific and South Asia, in support of our deeper engagement in that region, promoting open societies, reinforcing trade links and promoting climate change collaboration.
In China, I have reduced FCDO’s ODA for programme delivery by 95% to £0.9m (with additional ODA in this year only to meet the contractual exit costs of former programmes). The remaining £900,000 will fund programmes on open societies and human rights.
The UK remains a world leader in international development, not only through the impact of these financial allocations but also through the creation of the FCDO, integrating diplomacy and development to deliver greater impact. We will return to our commitment to spend 0.7% of gross national income on ODA when the fiscal situation allows.
FCDO ODA allocation 2021/22, £m
Climate change and biodiversity
COVID and global health
Humanitarian preparedness and response
Open societies and conflict
Science, research and technology
38 (plus thematic R&D)
Trade and economic development
Programmes with cross cutting themes
ALBs, International Subscriptions and other fixed costs