Skip to content
Friday 7 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Friday 28 February 2025 12:52 pm  |  Updated:  Friday 28 February 2025 2:54 pm

International development minister resigns over cuts to foreign aid

By: Jessica Frank-Keyes

Political Reporter

Add as a preferred source on Google
International development minister Anneliese Dodds has resigned over the Prime Minister’s cuts to the foreign aid budget. Photo: PA
International development minister Anneliese Dodds has resigned over the Prime Minister’s cuts to the foreign aid budget. Photo: PA

International development minister Anneliese Dodds has resigned over the Prime Minister’s cuts to the foreign aid budget.

Dodds, a former shadow chancellor, has quit her posts in the foreign office and as women and equalities minister, in the wake of Keir Starmer’s move to reduce overseas aid to fund increased defence spending, which she revealed she was informed about on Monday.

Earlier this week, Starmer announced he would hike military funding from the current 2.3 per cent of gross domestic product (GDP) to 2.5 per cent by 2027.

The decision, announced in Parliament on Tuesday, will see the foreign aid budget fall from 0.5 per cent of GDP to 0.3 per cent – which prompted outcry from charities and some MPs – amid rising global uncertainty over Ukraine’s future and the European security apparatus.

Writing to Starmer today [Friday], Dodds said she delayed tendering her resignation as it was “imperative that you had a united cabinet behind you as you set off for Washington”. 

She wrote: “Your determination to pursue peace through strength for Ukraine is one I share. 

“It is for that reason that I am only writing to you now that your meeting with President Trump is over, and four days after you informed me of your decision to cut overseas development assistance (ODA) to 0.3 per cent of GNI [gross national income].”

But she also stressed in her letter that the “cuts will remove food and healthcare from desperate people – deeply harming the UK’s reputation”, while admitting Starmer has “been clear that you are not ideologically opposed to international development”. 

However, she argued: “But the reality is that this decision is already being portrayed as following in President Trump’s slipstream of cuts to USAID [US Agency for International Development].

The former minister acknowledged that: “Undoubtedly the postwar global order has come crashing down. I believe that we must increase spending on defence as a result; and know that there are no easy paths to doing so.”

But she said she had expected the government to “collectively discuss our fiscal rules and approach to taxation, as other nations are doing” – before the Prime Minister informed her “the tactical decision was taken for ODA to absorb the entire burden”. 

Dodds also warned that the move would make it “impossible” to continue supporting “Gaza, Sudan and Ukraine; for vaccination; for climate; and for rules-based systems”, she argued, “given the depth of the cut”.

And she warned the decision would see a “UK pull-out” from areas including the Western Balkans “at a time when Russia has been aggressively increasing its global presence”, as well as a “reduced voice for the UK in the G7, G20 and in climate negotiations”. 

Read more

From Mongolian camels to Tibetan verbs: the absurdity Ed Miliband’s aid spending plans

Ed Miliband speaking at a podium during a press conference, addressing energy policy reforms and climate change initiatives.

She added: “All this while China is seeking to rewrite global rules, and when the climate crisis is the biggest security threat of them all.”

The MP for Oxford East said she wished the government “every success” for the future and said she would continue to support Starmer “from the backbenches”.

Responding to Dodds’ letter, Starmer thanked her for her “hard work, deep commitment and friendship”.

In a letter released by No10, he wrote: “Overseas development is vitally important, and I am proud of what we have done.” 

The UK, he said, would still provide “significant humanitarian and development support” and “protect vital programmes” in the “world’s worst conflict zones of Ukraine, Gaza and Sudan”. 

He also insisted the decision was “difficult and painful… and not one I take lightly,” writing: “We will do everything we can to return to a world where that is not the case and to rebuild a capability on development. 

“However, protecting our national security must always be the first duty of any government and I will always act in the best interests of the British people.”

Conservative Party leader Kemi Badenoch said she backed Starmer after Dodds resignation, writing on X: “I disagree with the PM on many things but on reducing the foreign aid budget to fund UK defence? He’s absolutely right.

“He may not be able to convince the ministers in his own Cabinet, but on this subject, I will back him. National interest always comes first.”

But Tory MP and former foreign office minister Andrew Mitchell said Dodds had done the “right thing”.

He said: “Labour’s disgraceful and cynical actions demean the Labour Party’s reputation as they balance the books on the backs of the poorest people in the world.”

While the Liberal Democrat spokeswoman for international development Monica Harding wrote on X: “Diplomacy, development and defence are not competing priorities – they are complementary.

“Where we withdraw our aid, it’s Russia and China who will fill the vacuum.”

Read more

Tax rises ‘guaranteed’ as Healey faces £22bn black hole from Burnham spending plans

Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics

People & Organisations

  • Anneliese Dodds
  • Defence
  • defence spending
  • Donald Trump
  • foreign aid
  • Keir Starmer
  • Labour
  • Labour Party
  • Parliament
  • security
  • UK defence
  • UK Government
  • Ukraine
  • US government
  • War in Ukraine
  • White House

Trending Articles

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • Rupert Lowe axes pensions triple lock and pledges tax cuts in economic plan

  • WPP slashes jobs as revenue continues to fall

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • As it happened: Stocks rise as oil fluctuates after Red Sea attack; US-Iran deal ‘being circulated’

More from Morning Wire

  • From Mongolian camels to Tibetan verbs: the absurdity Ed Miliband’s aid spending plans

    Opinion
    Ed Miliband speaking at a podium during a press conference, addressing energy policy reforms and climate change initiatives.
  • Tax rises ‘guaranteed’ as Healey faces £22bn black hole from Burnham spending plans

    Economics
    Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.
  • Rachel Reeves’ sister takes top legal role in Burnham’s Cabinet overhaul

    Politics
    Close-up of a business professionals hands typing on a laptop keyboard with financial charts on screen
  • The Capitalist: Colonel Carns hosts delulu dinner for leadership bid

    Opinion
    Al Carns smiling during a business meeting, wearing a suit, seated at a conference table with documents and a laptop visible
  • Rolls-Royce shares rise as Burnham pledges investment in British defence

    Politics
    Andy Burnham speaking at a press conference, wearing a suit and tie, addressing current political issues in Manchester.
  • Will Burnham take the pressure off business? Don’t bank on it

    Politics
    Andy Burnham speaking passionately at a public event, wearing a suit, highlighting his role as a prominent political figure.
  • Miliband opponents pour cold water on Chancellor hopes

    Politics
    Ed Miliband outside Downing Street
  • Burnham ‘aware’ of Healey’s extra £9bn spending demands

    Politics
    Andy Burnham, Mayor of Greater Manchester, in a suit and glasses, with a 10 NORTH logo in the background
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook