Reform UK Proposes £1bn Cap on Overseas Aid, Sparking Debate Over Impact on Britain's Global Influence
Reform UK has proposed capping the UK's overseas aid budget at £1 billion per year, approximately 0.03% of GDP, as announced by Nigel Farage in November. The cap would exclude existing multi-year commitments to international organisations such as the UN, World Bank IDA, Gavi, and the Global Fund, which together exceed £1.6 billion annually. In 2024, multilateral aid amounted to £2.8 billion.
Despite the proposed cap, most existing commitments would be difficult to unwind, potentially leaving no funds available for new emergencies or health initiatives, such as those required after Jamaica’s October Hurricane Melissa. Concerns have been raised about the broader implications of the cap. Gideon Rabinowitz of Bond warned that it would sharply reduce the UK's capacity to combat disease, poverty, and inequality, undermine its credibility as a global partner, and diminish its influence relative to countries like Russia and China.
The Labour party has criticised the proposal as simplistic and risky, saying it does not cover existing commitments and could lead to a loss of Britain's international influence. Similarly, Monica Harding of the Liberal Democrats argued that further cuts would hollow out the UK's diplomatic presence in Africa and Asia and erode its standing in important international institutions, including the UN, World Bank, and IMF.
Reform UK’s Zia Yusuf defended the plan, stating it would not threaten the UK's multilateral status and would preserve funds for Ukraine and disaster relief, while also criticizing past aid spending as wasteful.
