Overview

This bill reaffirms the UK's commitment to spending 0.7% of its gross national income on Official Development Assistance (ODA) each year, starting in 2015. It introduces mechanisms for parliamentary accountability if this target is not met and mandates independent evaluation of ODA effectiveness and value for money.

Description

The bill legally obligates the Secretary of State to ensure the UK meets the 0.7% ODA target annually. If the target is missed, a statement explaining the reasons (e.g., economic circumstances, fiscal constraints, external factors) and outlining corrective steps must be presented to Parliament. Section 3 of the 2006 International Development (Reporting and Transparency) Act, which previously required annual reports to include projections for meeting the 0.7% target, is repealed. Critically, the bill introduces a requirement for independent evaluation of whether ODA represents value for money, with findings reported annually to Parliament. The bill also clarifies that failure to meet the target does not automatically invalidate any government actions.

Government Spending

The bill does not directly affect government spending levels. Instead, it legally commits the UK to a specific spending target (0.7% of GNI on ODA) and mandates reporting and accountability mechanisms if that target is not met. The potential fiscal impact of meeting the target, as it relates to taxation, public spending, and borrowing, is acknowledged as a potential factor in explanations for any shortfall.

Groups Affected

This bill primarily affects:

• The UK Government: Legally binds the government to the 0.7% ODA target, increasing accountability to Parliament.
• Parliament: Provides a formal mechanism for parliamentary oversight of ODA spending and performance.
• International Development Organisations: Potentially impacts funding levels received from the UK government, depending on whether the 0.7% target is met. The independent evaluations may lead to changes in how aid is allocated.
• Beneficiary Countries: The bill's success in meeting the target directly impacts the level of aid these countries receive.

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