‘Putting development at the heart of foreign policy’

Labour came into government facing the toughest economic inheritance in a generation. Ministers have had to make difficult decisions to restore stability, rebuild public services and get the economy growing. Those realities cannot be ignored.

However, we should not lose sight of the longer-term ambition that has always defined our movement: Britain is stronger, safer and more prosperous when we work with others. The government should now set out a clear vision for rebuilding Britain’s international leadership in ways that support both our values and our national interests.

Twenty years ago, a Labour government helped secure landmark agreements on aid, trade and debt relief at the Gleneagles G8 Summit, contributing to more than $130 billion of debt relief for 36 of the world’s poorest countries. We also led the way in increasing levels of overseas development assistance to tackle global inequities, and worked collaboratively with our partners to respond to threats like the swine flu pandemic. Those achievements demonstrated that Britain’s influence is greatest when we lead internationally, not when we retreat from the world.

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Today’s challenges are different but no less urgent.

The cost-of-living crisis that has dominated conversations on doorsteps in Makerfield and at the last election did not begin in Westminster. It has been driven by global shocks: conflict, pandemics, rising food prices, energy insecurity and climate change. If the causes are global, many of the solutions must be too.

Development supports Labour’s domestic priorities by creating markets for British businesses, strengthening global health security and reducing the instability that drives conflict and irregular migration. We also have a responsibility as a relatively prosperous nation to show our solidarity to those in the world who face the worst inequities of poverty, ill health and marginalisation.

Official development assistance remains an essential part of that picture. Given today’s fiscal constraints, a new government returning immediately to 0.7% may not be possible. But Labour should set out a credible pathway back, making clear the conditions under which the UK would return to the target as the public finances improve.

Doing so would send a clear signal that Labour remains committed to the promises it made in the last election, and to the internationalist values that have long defined us. The decision to reduce aid spending was met with deep concern across the Parliamentary Labour Party and helped lose votes to the Greens and the Lib Dems across all parts of the UK. The 0.7% commitment is more than a spending target: it is enshrined in UK law and forms part of Britain’s wider reputation as a reliable international partner, alongside commitments such as spending 3.5% of GDP on defence through NATO. Setting out a pathway back would demonstrate that today’s fiscal constraints represent a pause –not a departure – from Labour’s longer-term ambition.

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At the same time, Labour has an opportunity to lead on other fundamental structural challenges that prevent many countries from delivering sustainable growth and tackling poverty on their own.

Reforming the global financial system that traps countries into cycles of debt could unlock billions for development at little or no additional cost to the UK taxpayer. Britain is uniquely placed to lead on sovereign debt reform, not least because around 90% of debt owed by countries in debt distress to private lenders is governed under English law. The case for reform is increasingly urgent, 3.4 billion people live in countries that spend more servicing debt than on health or education. Alongside tackling illicit financial flows and modernising international financial institutions, Labour has a real opportunity to help build a fairer global economy that benefits both developing countries and Britain.

The UK’s G20 presidency in 2027 provides the opportunity to do just that. Just as Gleneagles became a defining moment for Labour’s international leadership in 2005, the G20 could be this generation’s opportunity to shape global financial rules for the 21st century by driving debt reform, mobilising investment for developing economies and creating new opportunities for British exporters and businesses.

Protecting the remaining development budget while pursuing ambitious financial reforms are complementary goals, not competing ones. Structural reforms can unlock far greater investment over the long term, but the world’s poorest countries will continue to need targeted support to provide essential healthcare, educate children, respond to humanitarian crises and build more resilient communities.

Labour was elected to restore seriousness to government and Britain’s standing in the world. That means making difficult decisions today while keeping faith with the long-term commitments that define who we are. That does not require an immediate return to 0.7%. It does require a clear commitment to that destination. Setting out a credible pathway back, alongside using Britain’s G20 presidency to champion debt relief and global financial reform, would honour Labour’s internationalist tradition while recognising a simple truth: Britain’s prosperity, security and economic success are inseparable from the stability of the wider world.

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