Labour leader and Prime Minister Sir Keir Starmer is facing mounting pressure from senior Labour MPs over his controversial decision to cut the overseas aid budget in order to fund an increase in defence spending. Critics within his party argue that the move will lead to further humanitarian crises and undermine the UK’s global leadership on international aid.
Former Labour minister Barry Gardiner strongly opposed the cuts, warning that they would result in more deaths worldwide. Meanwhile, Dame Emily Thornberry, chair of the Foreign Affairs Committee, questioned whether the remaining budget would be sufficient to support crisis-stricken regions such as Ukraine, Sudan, and Gaza.
Tensions rise in the commons
During a statement on Ukraine, Sir Keir defended his approach, stressing that while he remains committed to foreign aid, he is not willing to jeopardise economic stability. His comments came in response to Labour MP Anneliese Dodds resigning as Foreign Office minister over the government’s decision to slash aid spending.
Speaking in the Commons, Mr Gardiner, MP for Brent West, acknowledged Sir Keir’s diplomatic efforts on Ukraine but insisted that defence spending should be increased by altering fiscal rules rather than cutting overseas aid.
“The Prime Minister deserves plaudits for the skilful way in which he handled his visit to Washington last week, as he does for the resolve that he’s shown to stand against Russia’s illegal invasion of the sovereign state of Ukraine,” Mr Gardiner said.
“Surely, though, this was a moment to accept that the post-war international settlement has now been fractured and that the necessary rise in defence spending should be achieved by changing the fiscal rules, not by cuts to international aid, which will only see more people slain by famine, drought, disaster and war.”
Sir Keir responded firmly, stating:
“The reason that we will not change the fiscal rules is that we need economic stability. We experienced economic instability only a few years ago under Liz Truss. The loss to our aid budget, and all budgets, would be far more profound if we go back to instability, and I’m not prepared to do it.”
Concerns over humanitarian aid in conflict zones
Dame Emily Thornberry, Labour MP for Islington South and Finsbury, raised concerns over how the UK would be able to prioritise its support for key humanitarian crises while facing budget cuts.
“The difficulty is that after refugee costs, admin costs, and the department’s commitments to things like the World Bank and the UN are taken into account, it is hard to believe that there will be enough left in the budget to provide meaningful humanitarian support in these priority areas,” she said.
“So, does the Prime Minister understand the concern of so many that these cuts could, in fact, in the long term hobble the very leadership that the Prime Minister has shown this weekend and that he has finally given the world some hope?”
Sir Keir defended his position, stating that his government remains committed to overseas aid but that priorities must be reassessed.
“I am committed to it. What we will now do is go through line-by-line the funding and look at our priorities,” he said.
“Of course, Ukraine, Sudan, Gaza, are right up there in our priorities, but I also want to work with others and across the House, if we can, at other ways of raising money and finance for development and aid overseas.”
Commitment to restoring aid when possible
Labour MP Cat Smith (Lancaster and Wyre) pressed Sir Keir on whether he would commit to restoring international aid spending to 0.7% of gross national income once fiscal circumstances allowed, in line with Labour’s general election manifesto.
Sir Keir confirmed his intention to restore aid funding when possible:
“Yes, I do want to restore aid and development funding as soon as fiscal events allow. It’s a principle I believe in. I’m proud of what we’ve done. In the meantime, I want to explore with others what other levers we can have to increase aid and development without necessarily increasing the spend within the government budget.”
However, Labour MP Nadia Whittome (Nottingham East) warned that reducing the overseas aid budget could have broader implications, stating:
“Cutting the international aid budget risks both increasing global instability and undermining support for Ukraine both here at home and internationally.”
Sir Keir acknowledged these concerns but maintained that prioritising defence spending was crucial for the security of Europe.
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Balancing defence and humanitarian support
Labour MP Naushabah Khan (Gillingham and Rainham) defended the Prime Minister’s decision, arguing that without a strong national defence, the UK’s humanitarian efforts could be weakened.
“The Prime Minister rightly reaffirms our commitment to our national security, and while it is regrettable that foreign aid and the soft power that goes with it will, for the time being, see a reduction, does the Prime Minister agree that without the necessary hard power to back what we say on the world stage, the impact of our international aid will be diminished in any case?” she asked.
Sir Keir agreed, reiterating that increased defence investment was necessary to protect national interests and support Ukraine effectively.
“I agree with her on the points she makes, in particular, our ability to support Ukraine in a number of different ways, but it is important that we take these steps,” he replied.
Looking ahead
As criticism from within Labour continues, the government faces an uphill battle in justifying the balance between defence spending and humanitarian commitments. With ongoing conflicts and humanitarian crises worldwide, the pressure on Sir Keir Starmer’s government to find alternative funding solutions for aid will likely intensify in the coming months.
