Charities have raised concerns over the government’s decision to cut its international aid budget to fund a hike in defence spending.

In parliament this week Prime Minister Keir Starmer said defence spending will increase to 2.5% of GDP by 2027, three years earlier than it had planned. His decision comes amid concern over increasing Russian influence in Europe and a shift in US foreign policy since Donald Trump began his second stint as president.

Starmer said that he had made the “painful choice” to cut the aid budget from 0.5% of GDP to 0.3% to fund the move, despite criticism from charities.

“This is a short-sighted and appalling move by both the PM and Treasury,” said Romilly Greenhill, chief executive of NGO body Bond.

“Slashing the already diminished UK aid budget to fund an uplift in defence is a reckless decision that will have devastating consequences for millions of marginalised people worldwide.”

Under the previous government the Conservative Party had already cut international aid spending from 0.7% to 0.5%.

Greenhill added: “Instead of stepping up, the UK is turning its back on communities facing poverty, conflict and insecurity, further damaging its credibility on the global stage.

“Tragically, this cut is even deeper than the last Conservative government’s and will destroy this Labour government’s reputation, tearing to shreds their previous manifesto commitments to rebuild the UK’s international reputation as a reliable global partner.”

Islamic Relief has branded the decision “both dangerous and short-sighted”

“It is a shameful act that betrays the world’s most vulnerable communities and will cost tens of thousands of lives,” said the international aid charity.

“By redirecting funds away from essential humanitarian and development programs, the government is not only abandoning its longstanding commitment to support those in most need – especially children, women and families facing conflict and poverty – but is also further undermining the UK’s credibility on the global stage and it’s stated commitment to internationalism.

“This decision falls well short of what people expect from a Labour government. Rather than championing international solidarity and development, this policy mirrors a troubling global trend that prioritises military spending over human welfare.

“It betrays the values that have long defined our nation - values that many were expected Labour to restore and strengthen.

“Instead, this policy will jeopardise critical partnerships and efforts to address the defining global challenges of our time, such as increasing global inequality, fragility, climate change, and worsening health crises.”

ActionAid UK says the government’s “decision to raid” the overseas development budget is “reckless”.

Its co-CEO Hannah Bond said: “That it has done so to increase military spending only adds insult to injury.”

“There is no justification for abandoning the world’s most marginalised time and time again to navigate geopolitical developments. This is a political choice—one with devastating consequences.”

🚨 “We are profoundly shocked and disappointed that the government has made the reckless decision to raid the already diminished ODA budget—reducing it to less than half of our legal obligation,” says co-CEO Hannah Bond

Full statement here: https://t.co/jhq46cqybx

— ActionAid UK (@ActionAidUK) February 25, 2025

Meanwhile, Ben Simms, chief executive of Global Health Partnerships (formerly THET) said this cut to international aid is “deeply regrettable”.

“Investing in global development is not only the right thing to do, but also the smart thing to do,” he said.

“Through the wise use of UK aid, the root causes of conflict, instability, and disease can be tackled before they become global threats.

“Stronger health systems and economies abroad mean greater security at home, while fostering partnerships that enhance the UK’s global influence and protect our national interests.

“I urge the Prime Minister to re-consider his announcement today. Investment in UK aid and defence should go hand-in-hand as the prudent use of UK aid contributes to our national security and the security of our global community.”

Labour MPs have also criticised the government’s international aid budget cut.
International development select committee chair and Labour MP for Rotherham Sarah Champion said the move is “deeply short sighted and doesn’t make anyone safer”.

She said: “The deep irony is that development money can prevent wars and is used to patch up the consequences of them, cutting this support is counterproductive and I urge the government to rethink.

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