UK Aid Budget

UK Aid Budget Statistics 2010/11 – 2014/15

Comprehensive Spending Review, 20th October 2010

Figures for UK development spending over the next five years were unveiled by the Chancellor in October 2010 as part of the coalition Government’s Comprehensive Spending Review (CSR). The CSR outlined how the government will meet its promise to spend 0.7% of Gross National Income on aid from 2013. DFID’s response can be found here.

Over the course of the Spending Review period, DFID will increase resource spending by 35% in real terms, and increase capital spending by 20% in real terms. The department’s administration budget will be reduced by 33%.

Department for International Development Departmental Expenditure Limit (DEL)

£ billion
2010-11 2011-12 2012-13 2013-14 2014-15
Resource DEL 6.3 6.7 7.2 9.4 9.4
Capital DEL 1.6 1.4 1.6 1.9 2.0
TOTAL DEL 7.8 8.1 8.8 11.3 11.5

Official Development Assistance (ODA)

£billion
  2010 2011 2012 2013 2014
Total UK ODA 8.4 8.7 9.1 12.0 12.6
ODA as % of GNI 0.56 0.56 0.56 0.70 0.70

Why the UK ODA budget fluctuates

The UK government frequently reviews the amount of spending undertaken by all its departments and DFID is no exception. While maintaining the commitment to reach the 0.7% GNI aid target the Treasury adjusts aid spending to reflect changes in economic forecasts.

Budget, 23rd March 2011

Updated figures were announced by the Chancellor in March 2011, as part of the 2011 Budget. DFID figures for 2011/12, 2012/13 and 2013/14 remain the same as in the CSR; the 2010/11 figure was revised down from £7.9 billion to £7.5 billion. The revised figures were as follows:

Department for International Development Departmental Expenditure Limit (DEL)

£ billion
2010-11 2011-12 2012-13 2013-14 2014-15
Resource DEL 5.9 6.7 7.2 9.4 9.4
Capital DEL 1.6 1.4 1.6 1.9 2.0
TOTAL DEL 7.5 8.1 8.8 11.3 11.5

Autumn Statement, 29th November 2011

In his Autumn Statement on Tuesday 29 November, the Chancellor reaffirmed the UK Government’s commitment to reach an aid spend of 0.7% of GNI by 2013.  However the Statement also noted that the Government will adjust the allocation for Official Development Assistance spending in line with the OBR’s revised growth forecast, so that UK spending on ODA does not exceed 0.56% of GNI in 2012, or 0.7% in 2013 and thereafter.

The Savings to the Treasury as a result of these adjustments will be as follows (see Table 2.1 p46):

2011-12 2012-13 2013-14 2014-15 2015-16
ODA adjusting to meet 0.7% GNI target (£millions) 0 +380 +265 +525

The revised ODA figures according to the 2011 Autumn Statement are:

  2011-12 2012-13 2013-14 2014-15
UK ODA – estimate now (Calendar) £8,550m £8,813m £11,554m £12,162m
ODA as % of GNI 0.56% 0.56% 0.7% 0.7%

Autumn Statement, 4th December 2012

The Chancellor’s Autumn Statement in 2012, the Government confirmed that it remains on track to reach its commitments to meet the UN target of spending 0.7% of national income on aid in 2013. However, the economic downturn has resulted in a £1.7 billion cut in the actual spending compared with the figures stated in the 2010 CSR.

The revised ODA figures according to the 2012 Autumn Statement are:

    £billion    

2010

2011

2012

2013

2014

Total UK ODA

8.4

8.6

8.7

11.4

11.9

ODA as % of GNI

0.56

0.56

0.56

0.70

0.70

Spending Round 2013

The UK will meet its pledge to spend 0.7% of its GNI on aid this year. This will make it the first G8 country to do so. The aid budget for 2015/16 is set to be £12.2bn; aid could thus make up 1.6% of the government’s total spending in 2015/16.

Aid expected to account for 1.6% of total government spending in 2015/16

Graphic - aid proportion of TMEPlanned aid and government spending in relation to national income forecast, 2015/16 [Source: OBR March 2013 GNI forecasts; HM Treasury, Spending Round 2013, tables 1.1 & 2.13; Development Initiatives analysis of the effect of today’s Spending Round on UK aid]

DfID’s overall budget will increase by 7.8% – i.e. £809m – 2014/15-2015-16. Of this sum, over 95%^ – i.e. £10.3bn – will be in the form of ODA in 2015/16. More than 30% will go to fragile and conflict-affected countries. The government will increase ODA in areas of UK expertise such as science and research and in measures to strengthen tax collection. Further, it may continue to end aid programmes to middle-income countries.