Author: Julia Sun

In November 2020, the British government announced that it would temporarily reduce official development assistance from 0.7% of gross national income to 0.5%. Government budget cuts and Brexit could leave UK NGOs facing a $1.3 billion funding gap.

In November 2020, the UK government announced that it would temporarily reduce official development assistance from 0.7% to 0.5% of GNI. Total ODA expenditure in 2021 is projected to be 33% lower than the previous year.
This move will deal a heavy blow to British NGOs (Non-Governmental Organizations, non-governmental organizations) active in the field of international development.

British NGOs are an important force in “going global”

Thousands of UK NGOs work overseas in international development.The British International Development NGO Network (BOND) alone covers more than 400 member organizations. British NGOs work in Africa and Asia, focusing on education and training, poverty alleviation, health, humanitarian relief, economic and community development, environmental protection and climate change.

A report by the British International Development NGO Network shows that in 2016, about 3.9 billion pounds (about 5.1 billion U.S. dollars) flowed to 305 British NGOs engaged in international development. A third of the money went to the eight largest institutions. In 2019, the total overseas expenditure of British NGOs accounted for 21% of the total UK charity expenditure. In the past ten years, UK NGO funding for international development has increased by 59%, which is much higher than the growth of the UK charity sector by 10%. In 2016, the funds used by British NGOs for international development mainly came from individual donations (31%), government grants (14%) and government purchases of services (19%). From this it can be seen thatGovernment funding crucial for UK NGOs working in international development.

UK NGOs severely affected by government aid budget cuts

In May 2021, the UK Foreign, Commonwealth and Development (FCDO) funding for the UK International Development NGO Network (BOND) was cut by 50%.

The move involves learning projects and civil society collective projects supported by FCDO's Aid Connect programme.Study programs supporting 13 aid agencies were shut down entirely. Funding for civil society collective projects fell by nearly 50%.The Civil Society Collective project aims to support civil society organizations in adapting to rapidly changing external environments such as the COVID-19 pandemic. The project advocates for the Sustainable Development Goals, encourages collaboration among NGOs, drives efforts to improve the quality of aid, provides a greater voice in global governance platforms such as the G7, and chairs joint humanitarian working groups between the UK government and NGOs. The Aid Connection Program has supported BOND to strengthen the coordination of British NGOs and effectively carry out international development work, providing capacity building and guarantee services for British NGOs committed to international development in terms of publicity, fundraising, and overseas risks.

In April 2021, the FCDO said it would suspend the Small Charities Challenge Fund (SCCF). SCCF is the window for the British government to fund small NGOs and is part of the British Direct Aid Fund. The fund is open to NGOs working in key countries with an annual income of less than £250,000. Grants provided by SCCF support NGOs to improve their capacity to address poverty issues to achieve global goals. SCCF grants of up to £50,000 are available for 2-year projects. Launched in July 2017, SCCF has awarded 90 grants to 75 organizations in 24 countries.

In addition to the above items,UK NGOs also face slashed government funding for international development projects around the world. Projects in areas such as girls' safety and education, health care, food and clean water for countries facing war or pandemic threats, such as Yemen and India, have been particularly affected. British NGOs are expected to face the risk of losing 1 billion pounds (about 1.3 billion U.S. dollars) in funding due to the two major factors of the British government's cut in aid spending and Brexit.

British NGOs responded strongly

The decision to drastically cut the foreign aid budget sparked a strong response from British NGOs.A joint statement from 200 UK NGOs including SCIAF, Save the Children and Oxfam condemned and urged the government to reverse the decision. The joint statement stated:
Cuts to aid budgets will hit the world's most vulnerable regions and people hard. SCIAF director Alistair Dutton believes aid cuts amid a global pandemic would be catastrophic and would be devastating for millions of people living in extreme poverty. Kevin Watkins, chief executive of Save the Children, believes that the UK government's sharp cuts in aid to Yemen, which is facing a huge humanitarian crisis, without assessing the potential impact of the move, show that the government has not considered the potentially harmful consequences .Saving little budget but ruining lives of people in many of the world's poorest countries.

Cutting the aid budget would do disastrous damage to the UK's reputation as a reliable development partner. Stephanie Draper, chief executive of the UK-based NGO network Bond, said the government's decision to cut the foreign aid budget sounded the death knell for the UK's leadership in international development and the "global UK agenda". "While other countries move forward and boost aid budgets, Britain backs downRomilly Greenhill, UK director of the anti-poverty group One Movement, said the UK government had been inconsistent with its words. While professing the importance of investing in girls' education and preventing future health crises, it failed to deliver on what was needed to achieve those ambitions. Project "Killing Out".

The upcoming new international development strategy has attracted attention

Speaking in Parliament last month, Foreign Secretary Elizabeth Truss said the UK's International Development Strategy was expected to be published this month. FCDO will also publish its allocation of Overseas Development Assistance (ODA). Will the strategy set out how the UK government will support civil society groups as the subject of international development behaviour? How will the UK government work with NGOs to drive sustainable development globally?British NGOs hope to find answers in new strategy.

references

https://tfn.scot/news/200-uk-ngos-condemn-uk-government-cuts-to-aid-budget

https://www.bond.org.uk/news/2022/02/what-to-expect-from-the-international-development-strategy

https://researchbriefings.files.parliament.uk/documents/CBP-9224/CBP-9224.pdf

https://www.globalcitizen.org/en/content/uk-budget-aid-cuts-ngos-reaction/Small Charities Challenge Fund (SCCF) | UK Aid Directhttps://ngoexplorer.org/

https://www.gov.uk/international-development-funding/dfid-funded-small-charities-challenge-fund-sccffund-sccf#short-overview

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Past review

• UK's 30% Reduction in Foreign Aid Budget Raises Concerns
• New Trends of Global Donor Countries in 2021: Development Cooperation in the Era of Pandemic (Europe)
• Recapping International Development in 2021
• Deciphering Germany's New International Development Policy