Britain can now spend some of its £14billion foreign aid budget on wealthy countries in crisis

BRITAIN will be able to spend some of its £14billion foreign aid budget on rich countries that suffer a big economic blow from crises - in a victory for Penny Mordaunt.

It means the £200 million the UK spent on the Overseas Territories in the wake of last year’s Hurricane Irma could in future come from the overseas aid budget rather than asking taxpayers for extra.

It is a big win for Ms Mordaunt after a lengthy campaign to change international rules that govern what counts as foreign aid spending. But the International Development Secretary wants to loosen the strict rules further by allowing countries who are just above the threshold to qualify too.

Currently Britain can only spend aid money on countries that have an average income per head of below £9,400.

And we can’t send aid money to those countries even when they dip below the target again.

But the rule change would allow those countries to once again become recipients of our aid money if humanitarian or economic disasters mean they fall below the World Bank High Income threshold.

Countries that have fallen below the threshold since 2000 after previously exceeding the threshold include Antigua and Barbuda, Equatorial Guinea and Venezuela.

The strict rules - governed by the OECD’s Development Assistance Committee in Paris - stopped us using the bloated foreign aid budget on the reconstruction effort for Caribbean islands devastated by Hurricane Irma and Maria last year because the nations were deemed too wealthy.

The tourism industry in the likes of St Lucia and the British Virgin Islands has taken a long-term hit by the tragedy. Britain had to use £196 million from other government budgets to cover help with recovery.

At the time of the hurricane there was no system in place for affected countries to requalify for aid.

Hailing the victory, Ms Mordaunt told The Sun: “The British public are strong supporters of providing help in the wake of disasters, including long-term reconstruction. They want to help people, especially when they are from nations we have close ties to.

“Not being able to pay for that help from the aid budget, because a nation’s economy was doing well, before a hurricane, earthquake or other disaster hit, was illogical and had to change.

“Britain has never fallen short in our support of countries in need – either through sending aid, our Armed Forces or reconstruction support. This significant rule change means that in future we may be able to use our aid budget to pay for that longer term, reconstruction support.

“This gives the UK more options in how it can help a nation recover and become more resilient to shocks. I think the public would agree that is what our aid budget should be used for.

“This is a major victory for the UK which has led the charge in securing this change. We will continue to press for further reforms to these important rules to ensure we are able to use the aid budget in the most sensible way.”

• GOT a story? Ring The Sun on 0207 782 4104 or WHATSAPP on 07423720250 or email exclusive@the-sun.co.uk.