Theresa May urged to use Brexit to rip up foreign aid spending target – before DFID gets an even bigger budget to waste
And a new report by the Centre for Policy Studies finds there is little direct evidence to link our overseas programmes and poverty reduction
THERESA May must use Brexit to rip up the 0.7 per cent foreign aid spending target — before bungling DFID is landed with an even bigger budget to waste, it was claimed last night.
The UK gives the EU £1.7 billion each year to spend on foreign aid — money that will come back under Whitehall control after our EU divorce.
Now a new report by right-wing think tank the Centre for Policy Studies finds there is little direct evidence to link our overseas programmes and poverty reduction.
The damning probe concludes this money must not be used to give a department with “evidence of mis-allocating spending” the 18 per cent budget boost the £1.7 billion represents.
Instead top economists Daniel Mahoney and Tim Knox urge a review of the International Development Act that enshrines spending 0.7 per cent of Britain’s budget on aid into law.
Their report cites the World Bank’s findings that “the rate of extreme poverty in the developing world has fallen from more than one out of every two people to roughly one out of every five people” since 1981.
But they claim “700 million people have been lifted out of poverty as a result of trade and the opening up of its economy to competition” rather than handouts from states like Britain.
Last night the CPS said: “The link between growing free trade and reduced poverty in the developing world is well established."
RELATED STORIES
“However, the evidence for a link between overseas aid programmes and poverty reduction is unclear.”
And they branded the aid law “a token measure as there are no consequences for missing the target.”
They also point out the flaws such as “rushing” spending towards the end of a financial year to simply meet the target.
They conclude that the “UK’s withdrawal from the EU brings new opportunities in this field” thanks to “the chance to regain control of it’s contribution to the EU aid budget.”
But they warn: “It is hard to justify giving a department with evidence of mis-allocating spending an 18 percent increase in its bilateral budget, particularly at a time when the government will be continuing to run a substantial deficit.”
Last night DFID hit back claiming “the aid budget makes the UK safer and is a key part of Global Britain’s international leadership as we leave the EU.”
They added: “DFID is committed to ensuring results for the world’s poorest and value for money for UK taxpayers.”