§ Mr. HancockTo ask the Chancellor of the Exchequer what plans he has to set a timetable for the UK to reach the target of spending 0.7 per cent. of gross national income on overseas aid. [166996]
§ John HealeyWe remain committed to the UN target and will continue to make progress towards 0.7 per cent. as the fiscal climate permits. The 2004 Spending Review is an opportunity to consider plans for development spending beyond 2005–06, alongside other priorities and pressures, but at this time it is not possible to predict the outcome of the Spending Review. In his Budget 2004 speech, the Chancellor announced that this Government will not freeze or cut the international development aid budget, but rather increase it. This is part of the Government's continuing commitment to increasing development aid. By 2005–06 the UK's aid budget will have grown by 93 per cent. in real term to 0.4 per cent. the largest ever increase in UK development funding. This will be double the current (2002) G7 average of 0.2 per cent. and well above the current (2002) average of 0.23 per cent. for countries on the OECD Development Assistance Committee. As our record shows, we are serious about making progress towards 0.7 per cent.
However, there is an urgent need for additional funds now if we are to make progress on meeting the 870W Millennium Development Goals (MDGs). The reality is that we will not raise the $ 50 billion needed every year to meet the MDGs unless every bilateral donor reaches 0.7 per cent. immediately. If even just two or three of the biggest bilateral donors fail to reach 0.7 per cent. now, we will fail to raise the funds required. That is why the Government has proposed an International Finance Facility (IFF) in order to deliver these resources. The IFF provides a realistic and feasible way of front-loading aid to meet the immediate need.