The Comprehensive Spending Review: CAFOD’s response

CAFOD welcomes today’s historic announcement, which reconfirms the UK Government’s commitment to spend 0.7% of national income on aid from 2013.

Standing by this forty-year promise made at the UN will make a life-changing difference to millions of poor and vulnerable people around the world – and is particularly commendable in these difficult economic times.

Britain can be proud to have stood by its promises as a recognised leader in the fight against global poverty. Aid is both morally right and remains a crucial part of effective development, representing a tiny amount of our public spending – just 1% of our overall budget – offering real value for money.

We recognise the huge challenges faced in the current climate of cuts, which have led to the decision to maintain the current ratios of aid to income, followed by a sharp increase before 2013. However, we are concerned about the impact this will have on ensuring aid money will make the biggest difference to those who need it most. ‘Flatlining’ the budget in this way will make it more difficult for developing country governments, who had planned for regular increases in aid, to effectively plan their spending and ensure delivery of services for the poorest.

CAFOD will continue to work with the government to find ways to address the risks of a sharp scale-up in the aid budget and ensure that taxpayers money is spent as effectively as possible. We are particularly concerned to ensure that aid money is spent on the poorest and most vulnerable not just those in countries considered of ‘strategic interest’ to Britain.

Finance for Climate Change

CAFOD understands the challenges everyone is facing in these difficult economic times but it is now more than ever that we must stand in solidarity with the poorest and most marginalized in their fight against climate change. Spending on climate change also makes economic sense. The Stern Review says if we do not act now the overall costs and risks of climate change will be equivalent to losing at least up to 20% of global GDP each year.

The UK government must commit its fair share of both fast-start and long-term climate finance to help developing countries adapt and move to a low carbon development path. The Comprehensive Spending Review has committed £2.9bn. The figure includes reaching the government’s commitment to give £1.5bn as ‘fast-start’ finance by 2012, of which £1.3bn still needs to be delivered.

This money will be taken from the money committed to overseas aid. CAFOD believes that, as the UN Framework Convention on Climate Change states, long-term finance should be additional to aid – otherwise it would detract from efforts to reach the MDGs . However this does not mean the money would have to come from existing government budgets. We hope the government can promote the development of innovative sources of finance, such as Financial Transaction Taxes, to supply the levels of public finance needed. This will help maintain the leadership the British government has shown on climate change on the global stage.

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