Committee publication · Correspondence · 25 March 2026

Letter from the Minster of State for International Development and Africa relating to the publication of FCDO’s Multi-Year ODA Allocations (2026/27- 2028/29), 19 March

From: Environmental Audit Committee

Summary

Baroness Chapman announces the publication of the FCDO's three-year ODA allocations (2026/27–2028/29), committing to 0.3% of GNI by 2027. The letter justifies a reset of UK development policy following reduced budgets to fund defence spending, outlining four strategic shifts: investment-focused rather than donor-focused approaches, systems support over service delivery, expertise provision over grants, and local solutions over international interventions.

Key findings

  • Government is publishing multi-year ODA allocations transitioning to 0.3% of GNI by 2027, following previous budget reduction to fund defence spending amid European security crisis.
  • Four major strategic shifts announced: thinking as investor not donor; supporting systems not delivering services; providing expertise rather than grants; supporting local solutions over international interventions.
  • Fully protecting funding for Ukraine, Sudan, and Palestine; prioritising humanitarian crisis support and maintaining ODA spend at 2025/26 levels for UK Overseas Territories.
  • Emphasises value for money and transparency, with scrutiny via NAO reports, Aid Transparency Indices, internal audits, and continued funding for Independent Commission for Aid Impact.
  • Frames development reset as modernisation addressing geopolitical shifts, economic power changes, rising global conflict, and demand for genuine partnership over 'paternalism of the past'.

Tone

Factual

Topics

international-developmentpublic-financehumanitarian-aiddefence-spendingclimate-change

Key actors

Baroness Chapman of Darlington, Toby Perkins MP, FCDO (Foreign, Commonwealth & Development Office), World Bank International Development Association, Gavi, the Vaccine Alliance, Global Fund, Independent Commission for Aid Impact, National Audit Office

Notable line

Every pound must deliver. Under our new approach, we will have clearer, more realistic priorities and new …

Key Quotes

Facing the most serious security situation in Europe since the end of the Cold War, our allies like Germany, France and Sweden have all made the same choice.
Baroness Chapman of Darlington · justifying the budget reduction to fund defence spending
Poverty, crises and institutional failure are easily exploited by malign actors to gain advantage, spread extremism or crime.
Baroness Chapman of Darlington · explaining why development spending remains in UK national interest despite budget cuts
… countries we work with today want genuine partnership, not the paternalism of the past
Baroness Chapman of Darlington · describing the modernised approach to international development
To think as an investor, not just a donor, using UK policy and funding to unlock other sources of finance and significantly multiply our impact.
Baroness Chapman of Darlington · first of four major strategic shifts in development approach
… in an interconnected world, crises and instability across the world undermine our security and prosperity at home
Baroness Chapman of Darlington · restating the UK national interest case for continued development commitment
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Source · parliament.uk record ↗