Committee publication · Correspondence · 19 March 2026

Letter from the Minister for International Development and Africa relating to FCDO’s multi‑year Official Development Assistance (ODA) allocations, 19 March 2026

From: Foreign Affairs Committee

Inquiry: Work of the Foreign, Commonwealth and Development Office

Summary

Baroness Chapman announces the FCDO's multi-year Official Development Assistance allocations for 2026/27–2028/29, outlining a strategic reset toward 0.3% of GNI by 2027. The Government emphasises modernising development delivery through four shifts: thinking as an investor, supporting systems, providing expertise over grants, and backing local solutions. The letter justifies budget reduction as a response to European security threats and frames development spending as aligned with UK national interest.

Key findings

  • FCDO publishing three-year ODA allocations (2026/27–2028/29) with transition to 0.3% of GNI spending by 2027.
  • Government reducing development budget to fund defence spending increases, citing serious European security situation and precedent from Germany, France, Sweden.
  • Four strategic shifts: investor mindset (unlocking additional finance), systems support (reducing aid dependency), expertise provision over grants, and prioritising local solutions.
  • Protected funding for Ukraine, Sudan, Palestine, and UK Overseas Territories; backing World Bank's IDA and Gavi for measurable impact.
  • Continuing independent scrutiny through Independent Commission for Aid Impact and published transparency mechanisms including NAO reports and Aid Transparency Indices.

Tone

Procedural

Topics

international-developmentpublic-financehumanitarian-aiddefence-spendingmultilateral-institutions

Key actors

Baroness Chapman of Darlington, Dame Emily Thornberry, Foreign Affairs Committee, FCDO, World Bank, Gavi, the Vaccine Alliance, Global Fund, Independent Commission for Aid Impact

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 reduction in development budget to fund defence spending
… countries we work with today want genuine partnership, not the paternalism of the past.
Baroness Chapman of Darlington · Explaining modernisation of development approach
We will prioritise aid for communities hardest hit by crisis, conflict and climate change. That means fully protecting funding for Ukraine, Sudan and Palestine, and prioritising humanitarian crisis support.
Baroness Chapman of Darlington · Outlining priority allocations under new framework
… each £1 we invest unlocks £4 of additional finance, and our ongoing partnership with Gavi, the Vaccine Alliance …
Baroness Chapman of Darlington · Demonstrating multiplier effect of investor approach
… in an interconnected world, crises and instability across the world undermine our security and prosperity at home.
Baroness Chapman of Darlington · Connecting development spending to UK national interest
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Source · parliament.uk record ↗

Letter from the Minister for International Development and Africa relating to FCDO’s multi‑year Official Development Assistance (ODA) allocations, 19 March 2026 | Beyond The Vote | Beyond The Vote