Simon McDonald Urges Chancellor to Protect Humanitarian Funding as Government Seeks Savings

A former senior Foreign Office official has urged Chancellor Rachel Reeves not to reduce the UK’s international aid budget, warning that such cuts could harm Britain’s global standing. With the government reviewing its spending, concerns are mounting that development funding may be scaled back to accommodate rising defence costs.

Simon McDonald, previously the top civil servant at the Foreign Office, cautioned that further reductions in aid could damage Britain’s reputation and have severe consequences for the world’s most vulnerable populations. His remarks come as US President Donald Trump has recently frozen America’s aid programme, raising concerns about global humanitarian efforts.

“During financial strain, international assistance is often one of the first areas targeted for reductions, as it is not a top priority for most voters,” McDonald stated. He stressed that the need for aid is “greater than ever” following the US cutbacks and warned that the UK should avoid making similar moves.

Government sources indicate that the aid budget is one of several areas under review as the Treasury seeks spending reductions. A government spokesperson dismissed speculation about potential cuts, reaffirming that development funding remains “central to achieving a world free from poverty.” However, an official close to the spending review process admitted, “Everything is on the table.”

Reeves faces a complex challenge in finalising a three-year budget plan set to be revealed in June. Rising borrowing costs have intensified pressure to find savings, particularly as the government has committed to increasing defence spending to 2.5% of GDP. While funding for healthcare and education remains safeguarded, other departments are being asked to outline possible budget reductions of up to 11%.

The Foreign Office, already subjected to significant cuts over the past five years, may face further reductions, including staff cuts and a shrinking aid budget. Foreign Secretary David Lammy is reportedly considering workforce reductions both domestically and abroad.

McDonald acknowledged that some administrative staff in London could be trimmed but strongly opposed scaling back Britain’s diplomatic presence. “The UK’s global network is essential—it serves as our eyes and ears worldwide. Cutting 50 positions would save just £5 million, a fraction of the overall budget,” he explained.

There is growing unease about the potential impact of further aid reductions, particularly in light of Trump’s decision to suspend US humanitarian assistance. His policy shift has already resulted in healthcare service closures in South Africa, job losses for thousands of medical workers in Ethiopia, and the possible wastage of nearly $500 million in food aid.

The UK currently allocates 0.5% of its gross national income to international aid, down from the 0.7% level reduced in 2021. Labour has pledged to restore this figure “when fiscal conditions allow,” but aid organisations fear the budget could shrink instead.

Romilly Greenhill, CEO of Bond, an organisation representing development NGOs, warned that following the US’s lead by diverting funds from aid to defence would be “reckless” and could undermine the UK’s own security interests.