British humanitarian aid is airdropped over Gaza. UK aid to other parts of the world is facing severe cuts. EPA
British humanitarian aid is airdropped over Gaza. UK aid to other parts of the world is facing severe cuts. EPA
British humanitarian aid is airdropped over Gaza. UK aid to other parts of the world is facing severe cuts. EPA
British humanitarian aid is airdropped over Gaza. UK aid to other parts of the world is facing severe cuts. EPA

UK slashes international aid to pay for major defence increase


Thomas Harding
  • English
  • Arabic

The British Prime Minister has announced he will cut the UK's overseas aid budget to pay for a significant increase in defence spending of £13 billion ($16.48 billion) to meet growing global threats.

With the US stepping back from protecting Europe, and Russia still considered a threat, Keir Starmer pledged to take the defence budget from 2.3 per cent to 2.5 per cent of GDP.

To pay for the rise he made the “very difficult” decision to cut the international development budget from its current level of 0.5 per cent of gross national income to 0.3 per cent by 2027 when the military increase is due to take hold.

“We must change our national security posture,” he told Parliament on Tuesday. “A generational challenge demands a generational response.”

Less than a month ago, Development Minister Anneliese Dodds admitted that children in Yemen had starved when the UK last cut aid in 2021.

And now, humanitarian spending on Gaza, Sudan and Ukraine will be ring-fenced, although much of the UK’s other international budget will be heavily cut, affecting projects across the Middle East, Africa and Asia.

Britain’s overseas aid is spent on a wide spectrum of projects, from those experiencing the fallout from war, such as in Gaza or Syria, to people affected by climate change, in the Caribbean or South Pacific.

The Foreign Office had been pushing to increase its £15 billion ($19 billion) aid budget, with particular concern for countries like Sudan reliant on life-saving aid, they said. Now it faces losing about 40 per cent of its funding.

“The UK government’s decision to cut aid by £6 billion in order to fund defence spending is a blow to Britain’s proud reputation as a global humanitarian and development leader,” said David Miliband, former Labour foreign secretary and head of the International Rescue Committee. “The global consequences of this decision will be far reaching and devastating for people who need more help not less.”

One UK aid stream is the task of demining areas where conflict has largely ended to allow populations to return to their towns and fields. The Halo Trust is among the world’s biggest demining outfits, especially in Afghanistan, Syria and Ukraine, and is reliant on the UK and US for funding.

The aid budget also goes on educating women and girls in poverty-stricken countries, attempting to empower them economically. It has also been diverted to help meet the growing cost of housing asylum seekers in the UK.

Britain's Prime Minister Keir Starmer announcing the cut to overseas aid to fund defence spending, in the UK Parliament, London, on Tuesday. AFP
Britain's Prime Minister Keir Starmer announcing the cut to overseas aid to fund defence spending, in the UK Parliament, London, on Tuesday. AFP

Washington gambit

Mr Starmer is due to head to Washington for a key meeting with President Donald Trump on Ukraine and European security on Thursday.

The US leader has been critical of European powers for not spending enough on defence and Britain’s announcement could help shore up wavering US support for Nato. French President Emmanuel Macron used his own White House visit this week to correct some of Mr Trump's claims about Europe's military aid being loan-based.

With Britain set to become Europe’s biggest spender on defence, Mr Starmer may have earned some credit when it comes to persuading Mr Trump to formulate a peace deal for Ukraine that does not weaken Kyiv.

The increase in spending could also demonstrate to the new Washington administration that hectoring Europe for an over-reliance on a US security umbrella is justified and could lead to defence increase announcements across the continent. “All European allies must step up,” Mr Starmer stated.

Germany will be under pressure to follow suit but its hands are tied by strict borrowing rules. Chancellor-in-waiting Friedrich Merz on Wednesday indicated he would not rush into the "complex task" of relaxing Germany's debt limits, even though it looks sure to become more difficult once a newly elected parliament meets next month.

German parties friendly to Ukraine and Nato will no longer have the two-thirds majority needed to amend the constitution and Mr Merz, a strong backer of Ukraine, says Europe "is waiting for Germany" to take on a stronger leadership role. However, he rejected the idea of reconvening the former parliament to reform the debt rules, which are sure to be a point of contention in coalition talks.

Cash for spies

While Mr Starmer also announced a £4 billion increase to British intelligence services' budget, he also promised to set a “clear ambition” in raising defence spending to 3 per cent of GDP within four years. “The nature of warfare has changed significantly,” he said. “We must modernise our capabilities.”

There will now be a new National Security Strategy published in June that, alongside an ongoing defence review, looks set to feature an increase in the size of the British army from its record low of 72,000 soldiers.

The Ministry of Defence will also look to invest in mass-produced offensive drones, precision missiles, artillery and air defences, all of which have been demonstrably lacking from its arsenal.

It will also push on with its nuclear missile submarine programme, planning to introduce the new Dreadnought submarine in the early 2030s.

Bitter disappointment

But the cash comes at the severe cost to the overseas budget, with Sarah Champion, the international development committee’s chairwoman, saying she was “bitterly disappointed” with the move.

She urged Mr Starmer to “rethink” the announcement in cutting aid, which was “a false economy that will only make the world less safe”.

“Conflict is often an outcome of desperation, climate and insecurity,” she added. “Our finances should be spent on preventing this, not the deadly consequences.”

Lord Malloch Brown, a British diplomat and former UN deputy secretary general, cast doubt on whether the numbers add up for plans to cut aid to funnel into defence spending.

“Right investment, wrong choice for place of cuts," he said. "I think probably it would be appropriate for foreign aid to have played its part in a broader package of cuts."

Aid organisations reacted with fury to the Prime Minister’s decision. Romilly Greenhill, chief executive of Bond, the umbrella organisation for international development and humanitarian assistance groups, said: “This is a short-sighted and appalling move by both the PM and Treasury.

“Slashing the already diminished UK aid budget to fund an uplift in defence is a reckless decision that will have devastating consequences for millions of marginalised people worldwide.”

Mr Starmer earlier told MPs it was “not an announcement that I’m happy to make” but added that “at a time like this the defence and security of Britain must always come first”.

At a Downing Street press conference on Tuesday evening, he told reporters: “I’ve taken a difficult choice today because I believe in overseas development, and I know the impact of the decision that I’ve had to take today, and I do not take it lightly.

“It is not a decision that I, as a British Labour prime minister, would have wanted to take, but a decision that I must make in order to secure the security and defence of our country.”

A source close to the Prime Minister told The National the government must now “make some difficult choices” on the precise areas of the Official Development Assistance budget it will have to cut.

Britain had previously set a global example on overseas aid, that is said to generate significant “soft power”, by an expenditure of the internationally agreed 0.7 per cent of GDP.

But during the pandemic it was cut to 0.5 per cent, or £12 billion, in 2021.

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Engine 3.0L V6

Transmission Eight-speed automatic

Power 340hp @ 6,000pm

Torque 450Nm @ 3,500rpm

Fuel economy, combined 9.1L / 100km

Votes

Total votes: 1.8 million

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GIANT REVIEW

Starring: Amir El-Masry, Pierce Brosnan

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RESULTS

Tottenham 1

Jan Vertonghen 13'

Norwich 1

Josip Drmic 78'

2-3 on penalties

Tonight's Chat on The National

Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.

Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

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The National selections

6.30pm Majestic Thunder

7.05pm Commanding

7.40pm Mark Of Approval

8.15pm Mulfit

8.50pm Gronkowski

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10pm Midnight Sands

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Miguel Cotto world titles:

WBO Light Welterweight champion - 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

W.
Wael Kfoury
(Rotana)

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Profile Idealz

Company: Idealz

Founded: January 2018

Based: Dubai

Sector: E-commerce

Size: (employees): 22

Investors: Co-founders and Venture Partners (9 per cent)

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RedCrow Intelligence Company Profile

Started: 2016

Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel 

Based: Ramallah, Palestine

Sector: Technology, Security

# of staff: 13

Investment: $745,000

Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

The struggle is on for active managers

David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.

The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.

Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.

Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.

Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.

At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn. 

SPECS

Nissan 370z Nismo

Engine: 3.7-litre V6

Transmission: seven-speed automatic

Power: 363hp

Torque: 560Nm

Price: Dh184,500

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Results

57kg quarter-finals

Zakaria Eljamari (UAE) beat Hamed Al Matari (YEM) by points 3-0.

60kg quarter-finals

Ibrahim Bilal (UAE) beat Hyan Aljmyah (SYR) RSC round 2.

63.5kg quarter-finals

Nouredine Samir (UAE) beat Shamlan A Othman (KUW) by points 3-0.

67kg quarter-finals

Mohammed Mardi (UAE) beat Ahmad Ondash (LBN) by points 2-1.

71kg quarter-finals

Ahmad Bahman (UAE) defeated Lalthasanga Lelhchhun (IND) by points 3-0.

Amine El Moatassime (UAE) beat Seyed Kaveh Safakhaneh (IRI) by points 3-0.

81kg quarter-finals

Ilyass Habibali (UAE) beat Ahmad Hilal (PLE) by points 3-0

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
The biog

Name: Marie Byrne

Nationality: Irish

Favourite film: The Shawshank Redemption

Book: Seagull by Jonathan Livingston

Life lesson: A person is not old until regret takes the place of their dreams

Race card

4pm Al Bastakiya Listed US$300,000 (Dirt) 1,900m

4.35pm Mahab Al Shimaal Group 3 $350,000 (D) 1,200m

5.10pm Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m

5.45pm Burj Nahaar Group 3 $350,000 (D) 1,600m

6.20pm Jebel Hatta Group 1 $400,000 (T) 1,800m

6.55pm Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m

7.30pm Dubai City Of Gold Group 2 $350,000 (T) 2,410m

The National selections:

4pm Zabardast

4.35pm Ibn Malik

5.10pm Space Blues

5.45pm Kimbear

6.20pm Barney Roy

6.55pm Matterhorn

7.30pm Defoe

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
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RACE CARD

5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m

While you're here
WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Navdeep Suri, India's Ambassador to the UAE

There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.

It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.

What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.

When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.

It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.

This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.

It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.

Tightening the screw on rogue recruiters

The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.

 Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.

A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.

The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.

The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.

Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.

Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment

But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

SPIDER-MAN%3A%20ACROSS%20THE%20SPIDER-VERSE
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Updated: May 02, 2025, 7:11 AM