According to sources cited by the Telegraph on Friday, the new British Prime Minister Rishi Sunak is considering keeping the nation’s foreign aid budget frozen for a further two years.
Britain spends 0.5% of its gross domestic product on overseas aid. Since the country’s public finances had taken a significant hit as a result of the coronavirus pandemic two years prior, the government has reduced its spending on international aid.
A UK Treasury official said in a statement that ‘all spending choices will be examined in the round by the Prime Minister and Chancellor at the Autumn Statement.’
When Sunak was finance minister at the time, he predicted that by 2024–2025, foreign spending would recover to its pre-crisis level of 0.7% of GDP.
According to The Telegraph, officials are considering delaying the reduction in foreign aid spending for an additional two years, until 2026–2027.
Additionally, the analysis stated that there was space for even deeper cuts and that future foreign aid spending might be three years’ worth of inflation-indexed.
The research is released at a time when the government is planning expenditure reductions and eliminating tax breaks due to the increasing cost of housing, food, fuel, and heating.