Annelise Dodds resigns from government over foreign aid budget cuts

International development minister Anneliese Dodds has resigned from her post over Keir Starmer’s decision to cut the foreign aid budget to fund a boost in defence spending.

Earlier this week, Starmer told MPs that the development budget would be cut from 0.5% to 0.3% to fund the “biggest sustained increase in defence spending since the Cold War”.

However, Dodds – who attends Cabinet – warned that Starmer would find it “impossible” to deliver on commitments to maintain development spending in Gaza, Sudan and Ukraine with the reduced budget.

Dodds has also quit her post as minister for women and equalities.

It is with sadness that I have had to tender my resignation as Minister for International Development and for Women and Equalities.

While I disagree with the ODA decision, I continue to support the government and its determination to deliver the change our country needs. pic.twitter.com/44sCrX2p8z

— Anneliese Dodds (@AnnelieseDodds) February 28, 2025

In a letter to the Prime Minister, Dodds said she was resigning “with sadness” but said that cuts to international aid would “remove food and healthcare from desperate people – deeply harming the UK’s reputation”, adding: “The reality is that this decision is already being portrayed as following in President Trump’s slipstream of cuts to USAID.”

She wrote: “You have maintained that you want to continue support for Gaza, Sudan and Ukraine; for vaccination; for climate; and for rules-based systems. Yet it will be impossible to maintain these priorities given the depth of the cut; the effect will be far greater than presented, even if assumptions made about reducing asylum costs hold true.

“The cut will also likely lead to a UK pull-out from numerous African, Caribbean and Western Balkan nations – at a time when Russia has been aggressively increasing its global presence. It will likely lead to withdrawal from regional banks and a reduced commitment to the World Bank; the UK being shut out of numerous multilateral bodies; and a reduced voice for the UK in the G7, G20 and in climate negotiations. All this while China is seeking to rewrite global rules, and when the climate crisis is the biggest security threat of them all.”

Dodds said that, while she “stood ready” to work with the government on delivering increased spending, “knowing some might well have had to come from overseas development assistance”, she said the “tactical decision was taken for ODA to absorb the entire burden”.

However, she also said she remains proud of the work Starmer has achieved since she backed him to become Labour leader.

“I will continue to support you and the change you are determined to deliver – but now I shall do so from the backbenches,” she said.

Reaction from Labour MPs… and Kemi Badenoch

A number of Labour MPs have expressed their sadness at Dodd’s decision to leave office, with Rotherham MP Sarah Champion describing her as “honourable to the end”.

She said her resignation was a “big loss to the sector, but I don’t think you had another option”.

Newcastle upon Tyne Central and West MP Chi Onwurah also said she was sad to see Dodds leave the government.

She said: “I know what the role meant to her, the belief, principles and commitment she brought to it. Anneliese has always acted in accordance with her conscience and I am sad to see her leaving the government.”

Norwich South Clive Lewis suggested other factors, such as the government’s “direction of travel” may have influenced Dodds’ decision to resign and said the cuts to the aid budget emphasised the need for Starmer to consider the case for a wealth tax.

He told Radio 4’s World at One: “We don’t tax wealth anywhere near as much. This is the conversation this government is going to have to have, because whether it comes to public spending domestically or internationally, or on defence, or investment into net zero and all the other things that we now want to do in terms of industrial manufacturing and supply chains, we need to have that resource.”

Suspended Labour MP and former shadow chancellor John McDonnell also described Dodd’s decision as “sad news” but said he could “fully understand why Anneliese has taken this decision”.

He said: “Anneliese was previously a member of my Treasury team and was incredibly hard-working, dedicated and highly professionally talented. Her resignation would be a significant loss to any government.”

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. https://t.co/hwTsp4MF2q

— Kemi Badenoch (@KemiBadenoch) February 28, 2025

However, the Prime Minister had support for his decision to cut foreign aid from an unlikely source, Kemi Badenoch.

In a post on social media, the Conservative leader said: “I disagree with the Prime Minister 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.”

Deputy Prime Minister Angela Rayner has defended the decision to cut aid spending and told broadcasters: “It is a really difficult decision that was made, but it was absolutely right that the Prime Minister and the Cabinet endorsed the Prime Minister’s actions to spend more money on defence. We want to see the economy grow so that we can then get back to having more money to spend on things like overseas aid and on our public services.”

READ MORE: Dawn Butler launches cross-party Parliamentary Black Caucus

‘You’ll have more to contribute in the future’: PM

In response to Dodds’ resignation, Prime Minister Keir Starmer defended the decision to cut the foreign aid budget but praised her work as a minister.

He said: “The decision I have taken on the impact on ODA was a difficult and painful decision and not one I take lightly. 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.

“Your work to support the most vulnerable regions has had a significant impact. I appreciate your tireless work to set this government’s direction on equality and opportunity. You have shown determination to tackle all forms of discrimination and boost opportunity for people across the UK.

“I know you will have more to contribute in the future and continue to represent your constituents in Oxford East with dedication.”

Who might replace Dodds?

A number of MPs could potentially succeed Dodds as international development minister, including Putney MP and Northern Ireland minister Fleur Anderson, who has a background working with aid charities, and Cowdenbeath and Kirkcaldy MP Melanie Ward, who worked as a humanitarian aid worker prior to being elected and served as CEO of Medical Aid for Palestinians.

More as we have it.

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