Minister resigns over cuts to overseas aid, saying move harms UK's reputation

International Development Secretary Anneliese Dodds has resigned due to the Prime Minister's cuts to the aid budget. This move has sparked widespread concern about the UK's foreign policy and international responsibilities. The resignation highlights the growing pressure on the government to balance domestic needs with global commitments.

In a letter to Sir Keir Starmer, Dodds stated that the plan announced earlier this week to cut international aid to fund increased defense spending would "deprive desperate people of food and healthcare and do serious damage to the UK's reputation." She also expressed understanding that some of the increased defense spending may need to be paid for through cuts to overseas development assistance (ODA). This decision has been met with criticism from various sectors, citing concerns about the impact on vulnerable populations.

She told the Prime Minister that she had delayed her resignation until after his meeting with President Trump, saying "you must have a united Cabinet when you go to Washington." Although not a Cabinet minister, Dodds, as the MP for Oxford East, also attended Cabinet meetings, and she said her resignation made her feel "sad." Her decision to delay the resignation underscores the importance of maintaining a united front on the international stage.

Starmer announced that aid funding would be reduced from 0.5% of gross national income to 0.3% by 2027 in order to fund the increase in defense spending. Dodds expressed disappointment with this, arguing that the Prime Minister had not discussed "our fiscal rules and tax approaches" and instead allowed ODA to "bear the entire burden." She added that the cuts could "lead to the UK withdrawing from numerous African, Caribbean and Western Balkan countries – at a time when Russia is actively expanding its global influence." The potential geopolitical consequences of these cuts are a major point of contention.

In his response to Dodds' resignation letter, the Prime Minister thanked the outgoing minister for her "hard work, deep commitment and friendship." He stated that cutting aid was a "difficult and painful decision that I have not taken lightly," and added: "We will do everything we can… to rebuild development capacity." Former Labour MP Baroness Chapman of Darlington has been appointed to succeed Dodds as International Development Secretary. The appointment signals the government's intention to continue its development efforts despite the budget cuts.

Dodds' resignation also highlights the divergence between the decisions the Prime Minister feels must be made and the views of some Labour MPs, which will exacerbate tensions between the leadership and backbenchers. Liberal Democrat leader Sir Ed Davey said Dodds had done the "right thing" and urged the government to find alternative ways to pay for the increase in defense spending. He suggested raising funds through a digital services tax or establishing a European arms bank. The resignation has sparked a broader debate about alternative funding models and the UK's role in international development.

Deputy Prime Minister Angela Rayner said she was "very sorry to hear" of Dodds' resignation. "It was a very difficult decision, but the Prime Minister and the Cabinet agree that it is absolutely right that the Prime Minister has taken action to put more money into defense," she said. Dodds first became a Labour MP in 2017, when she was elected to represent Oxford East. In the Labour Party under Jeremy Corbyn, she served as Shadow Treasury Minister and was promoted to Shadow Chancellor after Sir Keir took over. She had served as International Development Secretary since July 2024. Her departure marks a significant shift in the Labour Party's approach to international development.