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Tuesday, Aug 05, 2025

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UK International Development Minister Resigns Over Aid Budget Cuts

Anneliese Dodds departs after Prime Minister Keir Starmer announces significant reductions in foreign aid to fund defense spending.
Anneliese Dodds, the UK’s International Development Minister, has resigned following Prime Minister Keir Starmer's announcement of cuts to the international aid budget.

In her resignation letter, Dodds expressed concern that these cuts, which are intended to finance an increase in defense spending, would remove essential food and healthcare from vulnerable populations, adversely affecting the UK's global reputation.

Dodds, the Labour Member of Parliament for Oxford East, indicated that she chose to delay her resignation until after Starmer's meeting with U.S. President Donald Trump to present a united cabinet front for the pivotal discussions in Washington.

In her communication with Starmer, she noted that although he had not expressed an ideological opposition to international development, the portrayal of these aid cuts mirrored similar reductions implemented by the Trump administration in the United States.

The decision to reduce the aid budget from 0.5% of gross national income to 0.3% by 2027 aligns with the UK’s commitment to bolster defense spending.

Under this new plan, £6 billion less will be allocated annually for foreign aid.

A portion of the existing aid budget has already been utilized to accommodate asylum seekers within the UK, resulting in the actual overseas aid expenditure dropping to approximately 0.15% of the country's gross national income.

In her letter, Dodds acknowledged the necessity of increased defense spending in light of threats to global stability, saying she recognized some of the funding had to come from cuts to overseas development assistance (ODA).

However, she was disappointed that these cuts disproportionately affected ODA rather than discussing broader fiscal strategies or taxation reforms.

Dodds highlighted potential repercussions of the aid reductions, suggesting they could lead to the UK's withdrawal from various nations in Africa, the Caribbean, and the Western Balkans, while jeopardizing the UK's involvement in regional banks and diminishing its influence within multilateral organizations such as the G7 and G20, as well as in climate negotiations.

The announcement of the cuts had already drawn criticism from international development charities and some Labour MPs.

In response to the backlash, Starmer characterized the decision as difficult and painful, while emphasizing the need to restore development capabilities in the future.

Baroness Chapman of Darlington has been appointed to succeed Dodds as International Development Minister.

Dodds's resignation marks a continuing trend within Starmer's government, as she is the fourth minister to resign, following Louise Haigh, Tulip Siddiq, and Andrew Gwynne.

Reactions to Dodds's resignation were mixed among political figures, with some expressing support for her stance against the aid cuts.

Conservative leader Kemi Badenoch, while agreeing with the aid reductions to finance defense, indicated a willingness to align with the Prime Minister.

Conversely, Liberal Democrat leader Sir Ed Davey and Labour MP Sarah Champion raised concerns regarding the long-term implications of prioritizing defense over international aid.

Angela Rayner, the Deputy Prime Minister, expressed regret about Dodds's departure, describing the decision to increase defense spending as both challenging and necessary amid current global dynamics.

Dodds, who began her parliamentary career in 2017 and took on the international development portfolio in July 2024, played a prominent role in the Labour Party under various leaderships, including positions on the shadow Treasury team and as shadow chancellor.
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