Policy Updates

On June 12, 2025, BOND released an analysis of UK Chancellor Rachel Reeve's June 11 Spending Review, which revealed only minimal reductions in the use of UK ODA for IDRCs despite pledges to refocus UK ODA.

The reductions mean nearly a fifth of the UK’s annual development budget will continue to be spent on IDRCs until the end of the standing parliament. The total for IDRCs over three years was calculated at GBP5.8 billion (US$7.8 billion). The Spending Review did not detail in-donor refugee cost allocations by department, but BOND’s analysis showed a slow reduction in these costs rather than a significant shift. FCDO allocations for IDRCs were calculated at:

• FY2026/27: GBP2.3 billion (US$3.1 billion, 22.9% of ODA);
• FY2027/28: GBP1.9 billion (US$2.5 billion, 21% of ODA); and
• FY2028/29: GBP1.6 billion (US$2.2 billion, 17% of ODA).

BOND warned that this approach severely limits funding for global programs addressing poverty, conflict, and displacement. The continued diversion of ODA to cover domestic asylum costs, despite a commitment to end hotel use for asylum seekers, could signal a lack of urgency and undermines the UK’s credibility as a global development partner.

On June 4, 2025, the UK government revised its ODA budget estimates for 2025–2026, reallocating previously announced funds and deepening future ODA reductions.

While a GBP500 million (US$646 million) cut to the ODA budget was announced in March’s Spring Statement, new figures reveal a GBP480 million (US$620 million) shift from core multilateral programs to BII. UK Development Minister Jenny Chapman told the IDC that this adjustment provides fiscal flexibility ahead of larger cuts: GBP4.8 billion (US$6.2 billion) in 2026–27 and GBP6.5 billion (US$8.4 billion) in 2027–28. These reductions are set to bring UK ODA to 0.3% of GNI.

Overseas posts may continue existing and humanitarian commitments, but must now justify additional expenditures. Multilateral-to-bilateral aid “rebalancing” was noted, while Chapman declined to reaffirm the GBP11.6 billion (US$15 billion) climate finance pledge. Ahead of the UN Financing for Development conference in Seville, UK. priorities include private capital mobilization, debt transparency, and programming for women and girls. The UK is reportedly resisting progress on debt relief negotiations, including proposals for a debt workout mechanism.

On June 4, 2025, new findings from the Global Climate and Health Alliance showed that only 21 of 195 countries party to the UNFCCC Paris Agreement have submitted updated NDCs for 2035, nearly four months past deadline with most NDCs mentioning health benefits, such as reduced air pollution, but few including systems to track health outcomes.

The GCHA reviewed 11 countries’ NDCs and found that while many reference health benefits, only the UK’s plan includes specific air quality monitoring. Kenya’s NDC aims for 100% renewable energy and a 35% emissions cut by 2035, yet does not explicitly measure air pollution benefits. Brazil’s NDC focuses on deforestation and fossil fuel transition but lacks clarity on new oil extraction and zero deforestation pledges. The US, after submitting its plan, has withdrawn its targets, weakening global momentum.

Recent NDCs highlight varied approaches: New Zealand targets “super pollutants” but is seen as unambitious; Japan’s continued fossil fuel use has significant health impacts; Canada is phasing out coal; and the UAE is developing a national monitoring system. However, most plans fall short of the 1.5°C goal, with the UK as a notable exception.

The World Bank estimates that halving global exposure to dangerous air pollution by 2040 would require annual investments to rise from US$9 billion in 2020 to US$14 billion in 2040. Despite this, climate finance commitments remain inadequate, and the ;abbrUS exit further strains resources.

On May 27, 2025, the UK FCDO celebrated milestones of the LSAP in Belize, funded under the UKCIF, where the UK US$32million to the Coastal Road Upgrading Project aimed at boosting economic resilience and creating sustainable livelihood opportunities in Gales Point and Mullins River villages.

Achievements include formalizing 80 MSMEs, surpassing the target of 40. Of these, 43 are female-owned and 37 male-owned. Additionally, 72 participants received entrepreneurial development training, with 59 earning certification. A Buy Belizean exhibition featuring 14 MSMEs is scheduled for June 14, 2025, in Dangriga Town.

The initiative reflects a strong commitment to inclusive economic development, job creation, and community empowerment, showcasing the deep engagement of local communities and the success of UK -Belize partnerships.

On May 27, 2025, BOND highlighted the UK government's opportunity to address global debt challenges as a countermeasure to the ODA cuts which are set to drop to 0.3% of GNI by 2027, and urged action on debt to mitigate the impacts of reduced funding and growing climate and development crises.

The organization emphasized the UK’s pivotal role, given its jurisdiction over sovereign debt contracts, and proposed reforms like a UN debt framework convention and improved transparency. It also advocated for legislative updates to compel private creditor participation in debt relief and measures to prevent liquidity crises in LICs.

BOND underscored that action on debt could restore fiscal space for developing nations, enabling investments in social services, climate adaptation, and economic development, while reinforcing the UK’s global leadership and commitment to poverty reduction.

On May 13, 2025, UK Development Minister Baroness Jennifer Chapman confirmed to MPs that the UK Government will not make further cuts to the ODA budget and stated that ODA spending would not drop below 0.3% of GNI.

Baroness Chapman acknowledged the February decision to reduce ODA from 0.5% to 0.3% of GNI by 2027, citing it as a political choice to fund increased defense spending. She emphasized a shift in approach, moving from charity to investment partnerships. She noted that not all programs, including those for gender equality, could be protected. Additionally, no final decisions have been made regarding contributions to multilateral institutions such as GAVI, the Global Fund, and the World Bank’s IDA.

Sarah Champion MP, chair of the IDC, expressed concerns over the lack of a clear plan for managing these cuts while upholding the UK’s commitments. She warned of significant consequences for education, women, and girls, and questioned the UK’s continued role as a global leader. Champion called for urgent clarity, stressing the real-world impact of these decisions on lives and futures.

On May 13, 2025, the ONE Campaign took legal steps to challenge the UK government’s decision to reduce ODA/GNI from 0.5% to 0.3%, asserting that the cuts may violate the original act which enshrined a 0.7% ODA/GNI commitment into law.

The UK government has claimed the reduction is a temporary response to exceptional fiscal pressures and the need to increase defense spending. However, critics contend that the legal conditions for reducing the target have not been met, and that the government has failed to provide adequate justification for the move.

ONE cautioned that the ODA cut undermines the UK’s credibility and leadership in global development and could have severe humanitarian consequences for vulnerable populations. The legal challenge reflects wider concerns in the development sector about the UK’s retreat from its international obligations.

On April 29, 2025, The Straights Times reported that the UK is reconsidering its GBP2 billion (US$2.5billion) commitment to the World Bank’s IDA, this move follows a shift in government priorities, with funds redirected from foreign assistance to bolster defense spending amidst heightened security concerns in Europe.

The pledged amount, which marked a 40% increase from the previous commitment, was announced in November 2024. However, the Labour government is now reviewing their ODA budget under Development Minister Jenny Chapman, with potential reductions to the IDA contribution being considered.

Critics argue this would represent a significant departure from the UK’s historical leadership in global development under previous governments.

On April 4, 2025, the UK pledged an additional GBP10 million (US$13 million) to support relief efforts in Myanmar following the devastating earthquake.

This brings the UK’s total contribution to GBP19 million (US$25 million). The funding will provide emergency shelter, food, water, and medical aid to affected communities, reaching over 15,000 people to date. UK-funded local partners are already on the ground delivering life-saving assistance, ensuring resources reach those most in need.

On March 29, 2025, the UK government announced a GBP10 million (US$13 million) assistance package to support Myanmar following the devastating 7.7 magnitude earthquake in its central region, which seeks to provide life-saving assistance, including food, water, medicine, and shelter, to the most affected areas.

This assistance will be delivered through UK-funded local partners already mobilizing on the ground to address urgent humanitarian needs. The FCDO is also offering consular support to British nationals in Myanmar and neighboring Thailand.

Minister of State for Development Baroness Jennifer Chapman underscored the UK's commitment to providing immediate relief and expressed condolences to the people of Myanmar.