UK cuts overseas aid after worst recession in over 300 years

A pedestrian walks over London Bridge away from the City of London in London on November 25, 2020. (AFP)
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Updated 25 November 2020
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UK cuts overseas aid after worst recession in over 300 years

  • Decision goes against the government’s promise last year to maintain the aid target and drew sharp criticism
  • A minister has quit, arguing that the decision “will diminish our power to influence other nations to do what is right”

LONDON: The British government faced fury Wednesday over its decision to ditch its long-standing target for overseas aid in the wake of what it described as the deepest recession in over three centuries.
In a statement to lawmakers, Treasury chief Rishi Sunak said the target to allocate 0.7% of national income to overseas aid will be cut to 0.5%. The move is expected to free up 4 billion pounds ($5.3 billion) for the Conservative government to use elsewhere, money that critics say could be used to save tens of thousands of lives in the poorest parts of the world.
While expressing “great respect to those who have argued passionately to retain this target,” Sunak said “sticking rigidly” to it “is difficult to justify” to people at a time when the economy has been so battered by the coronavirus pandemic.
“At a time of unprecedented crisis, government must make tough choices,” he said.
Without giving a timetable, he said that the government aims to return to the target first laid out by the Labour government of Tony Blair in 2004. And he said that even with the new target, the UK will still be the second biggest aid spender among the Group of Seven leading industrial nations.
The decision goes against the government’s promise last year to maintain the aid target and drew sharp criticism from across the political spectrum, including within Prime Minister Boris Johnson’s own Conservative Party.
Liz Sugg, a junior minister at the Foreign Office, has quit, arguing that the decision “will diminish our power to influence other nations to do what is right.”
The UK has for years been considered one of the world’s leaders in development and aid so the government’s decision to lower the target was met with anger and dismay from poverty campaigners.
“Cutting the UK’s lifeline to the world’s poorest communities in the midst of a global pandemic will lead to tens of thousands of otherwise preventable deaths,” said Oxfam Chief Executive Danny Sriskandarajah.
Save the Children Chief Executive Kevin Watkins also said the decision had “broken Britain’s reputation for leadership on the world stage” ahead of its hosting of the 2021 United Nations Climate Change Conference next year.
The Archbishop of Canterbury Justin Welby joined the chorus of disapproval, describing the cut as “shameful and wrong” and urging lawmakers “to reject it for the good of the poorest, and the UK’s own reputation and interest.”
In a sobering assessment that provided the backdrop to the cut, Sunak sought to balance ongoing support for the economy with a longer-term commitment to heal public finances after a stark deterioration.
“Our health emergency is not yet over and our economic emergency has only just begun,” he said.
Sunak said the government’s independent economic forecasters are predicting that the British economy will shrink 11.3% this year, the “largest fall in output for more than 300 years.”
The Office for Budget Responsibility expects the economy to grow again next year as coronavirus restrictions are eased and hoped-for vaccines come on stream. The agency is predicting growth of 5.5% in 2021 and 6.6% the following year. As a result the output lost during the pandemic won’t have been recouped until the final quarter of 2022.
Sunak warned that the pandemic’s cost will create long-term “scarring,” with the economy 3% smaller in 2025 than predicted in March, before the spring lockdown.
The massive fall in output this year has led to a huge increase in public borrowing as the government sought to cushion the blow and tax revenues fell. Sunak said the government has pumped 280 billion pounds into the economy to get through the pandemic. Public borrowing this fiscal year is set to hit 394 billion pounds, or 19% of national income, “the highest recorded level of borrowing in our peacetime history.”
He warned that underlying public debt is rising toward 100% of annual GDP.
“High as these costs are, the costs of inaction would have been far higher,” he said. “But this situation is clearly unsustainable over the medium term.”
Sunak said the 1 million doctors and nurses in the National Health Service will get a pay rise next year, as will 2.1 million of the lowest paid workers in the public sector. However, he said pay rises in the rest of the public sector will be “paused” next year.
Sunak also announced extra money to support Johnson’s program of investments in infrastructure across the UK, particularly in the north of England, where the Conservatives won seats during the last general election. A new infrastructure bank will also be headquartered in the north of England.


More than 100 dead in torrential rain and floods across southern Africa

Updated 5 sec ago
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More than 100 dead in torrential rain and floods across southern Africa

  • South Africa has reported at least 19 deaths in two of its northern provinces following heavy rains
  • Tourists and staff members were evacuated this week by helicopter from flooded camps

JOHANNESBURG: Torrential rains and flooding have killed more than 100 people in South Africa, Mozambique and Zimbabwe, and authorities warned Friday that more severe weather was expected across several countries in southern Africa.
South Africa has reported at least 19 deaths in two of its northern provinces following heavy rains that began last month and led to severe flooding.
Tourists and staff members were evacuated this week by helicopter from flooded camps to other areas in the renowned Kruger National Park, which is closed to visitors while parts of it are inaccessible because of washed out roads and bridges, South Africa’s national parks agency said.
In neighboring Mozambique, the Institute for Disaster Management and Risk Reduction said 103 people had died in an unusually severe rainy season since late last year. Those deaths were from various causes including electrocution from lightning strikes, drowning in floods, infrastructure collapse caused by the severe weather and cholera, the institute said.
The worst flooding in Mozambique has been in the central and southern regions, where more than 200,000 people have been affected, thousands of homes have been damaged, while tens of thousands face evacuation, the World Food Program said.
Zimbabwe’s disaster management agency said that 70 people have died and more than 1,000 homes have been destroyed in heavy rains since the beginning of the year, while infrastructure including schools, roads and bridges collapsed.
Flooding has also hit the island nation of Madagascar off the coast of Africa as well as Malawi and Zambia. Authorities in Madagascar said 11 people died in floods since late November.
The United States’ Famine Early Warning System said flooding was reported or expected in at least seven southern African nations, possibly due to the presence of the La Nina weather phenomenon that can bring heavy rains to parts of southeastern Africa.
South African President Cyril Ramaphosa visited flood-stricken areas in the northern Limpopo province on Thursday and said that region had received around 400 millimeters (more than 15 inches) of rain in less than a week. He said that in one district he visited “there are 36 houses that have just been wiped away from the face of the Earth. Everything is gone ... the roofs, the walls, the fences, everything.”
The flooding occurred in the Limpopo and Mpumalanaga provinces in the north, and the South African Weather Service issued a red-level 10 alert for parts of the country for Friday, warning of more heavy rain and flooding that poses a threat to lives and could cause widespread infrastructure damage.
The huge Kruger wildlife park, which covers some 22,000 square kilometers (7,722 square miles) across the Limpopo and Mpumalanga provinces, has been impacted by severe flooding and around 600 tourists and staff members have been evacuated from camps to high-lying areas in the park, Kruger National Park spokesperson Reynold Thakhuli said.
He couldn’t immediately say how many people there were in the park, which has been closed to visitors after several rivers burst their banks and flooded camps, restaurants and other areas. The parks agency said precautions were being taken and no deaths or injuries had been reported at Kruger.
The South African army sent helicopters to rescue other people trapped on the roofs of their houses or in trees in northern parts of the country, it said. An army helicopter also rescued border post officers and police officers stranded at a flooded checkpoint on the South Africa-Zimbabwe border.
Southern Africa has experienced a series of extreme weather events in recent years, including devastating cyclones and a scorching drought that caused a food crisis in parts of a region that often suffers food shortages.
The World Food Program said more than 70,000 hectares (about 173,000 acres) of crops in Mozambique, including staples such as rice and corn, have been waterlogged in the current flooding, worsening food insecurity for thousands of small-scale farmers who rely on their harvests for food.