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Labour urged to plug predicted £400m shortfall in overseas aid funding in 2027

Labour urged to plug predicted £400m shortfall in overseas aid funding in 2027

Summary

A Center for Global Development analysis estimates that the UK could fall short of its 2027 target for international aid spending by £410 million, leaving aid at 0.29% of national income. The researchers urged ministers to consider adding funds in the upcoming budget; the government’s published aid allocations cover the next three financial years.

Key Facts

  • The UK’s 2027 aid target is 0.3% of national income, below Labour’s election pledge of 0.7%.
  • The CGD’s central forecast estimates a £410 million shortfall; other scenarios put it at £250 million or £580 million.
  • The CGD attributed the projected gap to higher-than-expected inflation and a 2025 policy change involving the Foreign, Commonwealth and Development Office budget.
  • The UK’s official development assistance fell to 0.44% of gross national income in 2025, from 0.5% in 2024, a decrease of £987 million.
  • FCDO data showed aid to least-developed and low-income countries fell by 6.7%, or £118 million.
  • The government has prioritised aid through multilateral organisations, including the World Bank’s development arm and Gavi, and continued humanitarian support.
  • Fleur Anderson, a former minister and member of Parliament’s foreign affairs select committee, called for the government to meet its reduced target and eventually reverse the cuts.
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