Liam Fox challenges overseas aid pledge

In a letter to Prime Minister David Cameron, Liam Fox argues against creating a statutory commitment to spend 0.7 per cent of national income on overseas aid from 2013.

The Defence Secretary said while he supports the 0.7 per cent target in principle, he could not support the proposal “in its current form”. Rushing to make it law, would leave the government with less financial flexibility during these tougher economic times, he indicated.

A source close to Dr Fox said: “The Defence Secretary fully supports the principle of a 0.7 per cent target on international aid. The issue is simply how best to reflect this in law.”

International aid amid cuts

Getting wealthy, developed nations to pledge 0.7 per cent of their national income on overseas aid has been an international development aim since the 1970s. Britain eventually signed up to the target under Prime Minister Tony Blair.

When David Cameron pledged his support for the target while in opposition, it was seen as a key step towards improving the Tory brand. All three party leaders committed to maintaining the target for official development assistance (ODA) in the 2010 election.

However, some Conservative MPs have voiced anger at the decision to increase international aid budgets over the coming four years, at a time when spending on domestic priorities, including defence, is being cut back.

Britain's foreign aid budget: money well spent?

Britain donates more in foreign aid than ever before, with a budget set to eclipse that of the Home Office within four years. 

As Liam Fox raises concerns over the pace of our commitment, Channel 4 News looks at where the money goes - analysing our aid policy in Afghanistan, Britain's "number one priority", and Malawi, which is currently under review following the expulsion of the British ambassador.

Read more: Britain's foreign aid budget - money well spent?

Targets

Dr Fox’s letter, obtained by The Times, made it clear that he has spoken with International Development Secretary Andrew Mitchell and Foreign Secretary William Hague before writing to the Prime Minister.

“I have considered the issue carefully, and discussed it with Andrew and William Hague, but I cannot support the proposal in its current form,” wrote Dr Fox.

“In 2009 the proportion of national income spent on ODA was only 0.52 per cent.”

Putting the commitment no the statute books “could limit HMG[overnment]’s ability to change its mind about the pace at which it reaches the target in order to direct more resources toward other activities or programmes rather than aid,” warned the Defence Secretary.

Downing Street declined to comment on the leaked letter, but said it remained committed to putting the 0.7 per cent pledge into law, in line with the Coalition agreement.