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UK faces £400m gap in overseas aid budget for 2027, experts warn

The Center for Global Development says the UK will miss its 0.3% of national income aid target by about £400m in 2027, risking cuts to programmes in Africa and elsewhere.

Research by the Center for Global Development indicates the United Kingdom will miss its 0.3% of gross national income target for overseas aid by the end of 2027, with a shortfall ranging from £250m to £580m, most likely around £400m. The deficit is attributed to higher-than-expected inflation, which raises national income, and a policy shift in the FCDO budget slated for 2025. Ian Mitchell of CGD describes the gap as a "material shortfall" that could halve planned cuts to African programmes, jeopardising clean water, schooling, vaccines and peace initiatives.

Labour MP Fleur Anderson urges the Treasury to boost aid spending in the forthcoming budget, arguing that missing the target translates into real hardships for vulnerable communities. The government has shifted focus toward multilateral agencies such as the World Bank’s International Development Association and Gavi, while Conservative and Reform UK parties propose further reductions to aid spending.

Why it matters

A UK aid shortfall could cut vital services for millions in low-income countries.

In this story

overseas aidbudget shortfall0.3% targetinflation impactdevelopment assistanceUK aid cutsbudget 2027African programmesforeign aid policy
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