Labour MPs are calling on Andy Burnham to restore the UK’s aid spending target to 0.7% of GDP, a goal established by former Prime Minister Gordon Brown. This appeal comes as the New Economics Foundation (NEF) prepares to publish a collection of essays outlining a roadmap for a Burnham-led government’s foreign policy, emphasizing the need for the UK to reclaim its leadership role in international development.
Restoring the 0.7% Aid Target
The NEF publication suggests a 10-year plan to return to the 0.7% target for aid and development spending. Fleur Anderson, a former minister in international development, argues that while annual targets are important, establishing a credible long-term trajectory is essential. “What matters is not mechanical annual targets, but establishing a credible long-term trajectory that partner governments, multilateral institutions, NGOs and local organisations can plan around,” she stated.
The 0.7% target was legally mandated during Brown's tenure but was abandoned in 2020 by Rishi Sunak, who cited the Covid pandemic as the reason. In place of reinstating the target, current Labour leader Keir Starmer opted for further cuts to aid spending to bolster defense budgets, leading to the resignation of Anneliese Dodds, the development minister.
Global Leadership and Wealth Tax Discussion
Liam Byrne, chair of the Commons business and trade committee, emphasized the importance of utilizing the UK’s upcoming G20 presidency in 2027 to advocate for a global wealth tax. He believes that the UK can leverage its respected status in institutional design to address global financial challenges.
- The UK will chair the G20 in 2027, succeeding the US.
- Byrne suggests that the UK has the potential to lead discussions on an international wealth tax.
- Previous G20 chairs, like South Africa and Brazil, have made significant contributions.
Byrne remarked, “The UK – respected for institutional design and coordination – could take this momentum and help solve the problem of designing a tax that actually works.”
Mobilizing Resources for Development
Another former Labour minister, Gareth Thomas, proposed that the G20 presidency could also initiate discussions on replacing the UN’s sustainable development goals, which are set to expire in 2030. He noted that the G20 and G7 could serve as platforms to mobilize resources for development.
Thomas highlighted the recent success of Gavi, a public-private vaccine alliance, stating, “The UK’s forthcoming G20 presidency could aim to pool $1bn towards an ambitious multi-year rollout to immunise a billion children living in fragile states; an initiative that would serve both Britain’s strategic interests and Labour’s values.”
The NEF’s chief executive, Danny Sriskandarajah, remarked on the potential for the UK to take a proactive stance in foreign policy, stating, “A lot of foreign policy has been defensive in recent years, trying to stop things from getting worse, but there is also an opportunity for the UK to show global leadership on key progressive issues.”
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