International Development Minister Anneliese Dodds has resigned in response to the prime minister’s decision to cut the aid budget to fund an increase in defence spending.
In a letter to Sir Keir Starmer, Dodds expressed her strong opposition to the cuts, stating that they would “remove food and healthcare from desperate people – deeply harming the UK’s reputation.” She delayed her resignation until after the prime minister’s meeting with President Trump, emphasizing the importance of presenting a united front during the Washington visit.
Dodds, the MP for Oxford East, attended cabinet meetings despite not being a cabinet minister. She expressed sadness over her resignation, noting that while Sir Keir was not “ideologically opposed” to international development, the cuts gave the impression of following the U.S. president’s lead in reducing foreign aid.
Ahead of his trip, the prime minister announced that aid funding would be reduced from 0.5% to 0.3% of gross national income by 2027 to facilitate increased defence spending. In response, Dodds criticized the decision, arguing that it placed the entire financial burden on overseas development assistance (ODA) instead of exploring adjustments to fiscal policies and taxation.
She warned that the cuts would likely result in the UK withdrawing from several African, Caribbean, and Western Balkan nations at a time when Russia is expanding its global presence. Additionally, she predicted a diminished role for the UK in regional banks, the World Bank, and major international forums such as the G7 and G20.
The budget cuts will result in an annual reduction of £6bn in foreign aid spending. Given that a portion of the aid budget is already allocated to covering asylum seeker accommodation in the UK, the actual amount spent on overseas aid will decrease to approximately 0.15% of gross national income.
The prime minister justified the decision, stating it was a “difficult and painful” but necessary step, promising efforts to rebuild the UK’s development capabilities in the future. His decision to boost defence spending was well received by the U.S. president, who had previously criticized European nations for their reliance on American military support.
Despite her resignation, Dodds acknowledged the need for increased defence funding, particularly in light of global instability. However, she disagreed with the approach taken, arguing that alternative funding methods should have been considered.
Several MPs have voiced concerns over the decision. Labour MP Sarah Champion, chair of the international development committee, described the move as a “false economy” that could ultimately make the world less safe. Diane Abbott also condemned the decision, calling it “shameful” that more ministers had not resigned alongside Dodds.
The resignation highlights tensions within the government as some Labour MPs and backbenchers express discontent with the prime minister’s choices. While Conservative leader Kemi Badenoch supported the cuts, calling them necessary to bolster UK defence, former international development minister Andrew Mitchell sided with Dodds, accusing Labour of engaging in “disgraceful and cynical actions.”
Liberal Democrat leader Sir Ed Davey praised Dodds for her stance and urged the government to explore alternative revenue sources, such as increasing the digital services tax or establishing a European rearmament bank to finance defence procurement.
Deputy Prime Minister Angela Rayner acknowledged Dodds’s departure, expressing regret while reiterating the government’s commitment to increased defence spending.
Dodds, who first became an MP in 2017, has held several key positions within Labour. Under Jeremy Corbyn, she served as a shadow Treasury minister and was later appointed shadow chancellor by Sir Keir. Following Labour’s disappointing results in the 2021 local elections, she was reassigned to the women and equalities brief. Since July 2024, she has served as international development minister.
Her departure marks the fourth resignation from Starmer’s government, following Louise Haigh, Tulip Siddiq, and Andrew Gwynne.
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