Anneliese Dodds has quit as international development minister over Sir Keir Starmer’s decision to slash the overseas aid budget to pay for an increase in defence spending. 

Ms Dodds, who is also women and equalities minister and attends cabinet, said she was resigning from both posts “with great sadness” but would continue to support the government from the backbenches.

Politics Live: Starmer back in Downing Street after Washington trip

In her resignation letter to the prime minister, she acknowledged there was “no easy path” to fund the boost to defence but claimed there had been a “tactical decision” for the Overseas Development Aid (ODA) budget to “absorb the entire burden”.

She said: “You have maintained that you want to continue support for Gaza, Sudan and Ukraine; for vaccination; for climate; and for rules-based systems.

“Yet it will be impossible to maintain these priorities given the depth of the cut; the effect will be far greater than presented, even if assumptions made about reducing asylum costs hold true.”

Ms Dodds said the cut will likely lead the UK to pull-out from numerous African, Caribbean and Western Balkan nations, as well as a withdrawal of commitments to international banks and a reduced voice in the G7 and G20.

“Ultimately, these cuts will remove food and healthcare from desperate people – deeply harming the UK’s reputation,” she added.

“I know you have been clear that you are not ideologically opposed to international development. But the reality is that this decision is already being portrayed as following in President Trump’s slipstream of cuts to USAID.”

Around £6bn per year will be taken out of the aid budget and transferred over to pay for defence.

That amounts to a reduction in aid spending from 0.5% of GDP to 0.3%.

In a letter responding to Ms Dodd’s resignation, Sir Keir said the decision to cut foreign aid “was a difficult and painful decision and not one I take lightly”.

“However, protecting our national security must always be the first duty of any government and I will always act in the best interests of the British people,” he said.

The resignation comes after a key meeting between Sir Keir and Mr Trump on Thursday, during which the US leader praised the defence sending decision and also touted the prospect of a tariff-free trade deal.

Ms Dodds marks the loss of a fourth minister from the new Labour government, after Louise Haigh and Tulip Siddiq resigned and Andrew Gwynne was sacked.

Conservative MP Andrew Mitchell, who was the international development minister under Rishi Sunak, said Ms Dodds had “done the right thing”.

He posted on X: “Labour’s disgraceful and cynical actions demean the Labour Party’s reputation as they balance the books on the backs of the poorest people in the world. Shame on them and kudos to a politician of decency and principle.”

Resignation of Dodds shows Starmer’s ruthless side

Liz Bates

Political correspondent

@wizbates

She was one of his closest allies, but today Anneliese Dodds has quit Keir Starmer’s government with a stark warning about the direction of travel.

It’s been quite a journey since she got the top job in his opposition cabinet.

When he took over as Labour leader, she was appointed shadow chancellor and seen as a key player in his team.

Since that time, Starmer has shown himself to be a pragmatic, sometimes ruthless, operator when it comes to both policy and political friendships.

This resignation once again shows that side.

Not only is he pushing through deep cuts to foreign aid – a move he previously condemned – but in doing so, he has also cast aside one of his most loyal and long-standing colleagues.

Former Tory defence minister Tobias Ellwood also praised the decision as “courageous and principled”, saying that national security is “not just about hard power” but tackling threats like disease and extremism.

However, Conservative leader Kemi Badenoch backed Sir Keir’s decision.

She said: “I disagree with the PM on many things BUT on reducing the foreign aid budget to fund UK defence? He’s absolutely right.

“He may not be able to convince the ministers in his own cabinet, but on this subject, I will back him.

“National interest always comes first.”

Read more from Sky News:
What foreign aid is being cut?
‘Trump not the reason for UK defence spending boost’

Sir Keir announced the decision to cut the aid budget on Tuesday, saying it would fund and increase defence spending from 2.3% of GDP to 2.5% in 2027. Labour’s manifesto had pledged to reach this target but it was not clear when that would be achieved or how it would be funded.

The prime minister admitted the inauguration of Mr Trump – who has made clear he no longer wants to bankroll NATO’s defence- “accelerated” his decision but said it had been three years in the making, after Russia’s invasion of Ukraine.

He said the reduction in foreign aid is “not a renouncement I’m happy to make”.

Asked about it during the Convention of the North conference, deputy prime minister Angela Rayner said: “I’m sorry to hear she’s resigned, it was a really difficult decision that was made.”

However, she said it was “absolutely right” that the cabinet endorse the prime minister’s actions to spend more money on defence.

Tesla has partnered with Steak ‘n Shake to deploy Superchargers at up to more than 100 restaurant locations.

The partnership between Tesla and the American fast food chain has been revealed through a strange series of posts on X.

First, Tesla CEO Elon Musk commented on Steak ‘n Shake’s announcement that it is switching from using seed oils to beef tallow.

The restaurant responded by proposing “Tesla charging stations at Steak n Shake”, but they apparently didn’t know that it was already happening as Tesla responded that they had already signed on 6 sites and they have over 20 more in review:

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The Steak n Shake account responded by suggesting that the partnership extend to over 100 locations:

Thank you Tesla Charging!  Let’s do over 100 locations. Consider all sites approved!

The chain operates over 400 locations around the world – many of them in the midwest. A lot of these locations are located near highways, where Tesla prefers to deploy charging stations.

It’s not the first time that Tesla has partnered with a restaurant for multiple Supercharger locations. It also has a deal with Ruby Tuesday.

Tesla is currently deploying its latest V4 Superchargers capable of 500 kW – with the first stations expected to come online in the US later this year.

Volkswagen’s electric SUV is making a comeback. Last month, the Volkswagen ID.4 topped Tesla’s Model Y to become the best-selling EV in Europe, and it was even in the top three in the US.

Volkswagen ID.4 was EU’s best-selling EV, top 3 in the US

Although new vehicle registrations fell 2% in Europe last month, electric vehicles were a bright spot, with BEV sales up 37% from the year prior.

According to JATO Dynamics, 165,473 EVs were registered in Europe in January. The Volkswagen ID.4 took the top spot after registrations surged 195% to 7,177, overtaking the Tesla Model Y.

Tesla Model Y registrations plunged 46% in Europe last month to 6,155. The Model 3 refresh, which was launched in late 2023, had a 44% decline in registrations. Overall, Tesla registered only 9,913 vehicles in January 2025, a 45% decline from last year.

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While the arrival of the new Model Y plays a role, backlash against Elon Musk’s increasingly outspoken political antics is also causing widespread hate among owners in the US and Europe.

Felipe Munoz, Global Analyst at JATO said the solid performance of EVs is “particularly impressive given the significant dip in sales that Tesla experienced” in January.

He explained, “it’s not unusual for sales to drop just before a new generation or an updated model is introduced to the market.”

Although sales are expected to pick up again, Munoz added, “The performance of both the Model 3 and Model Y is an indication of the declining popularity of Tesla in Europe overall.”

Volkswagen is taking advantage with the ID.4 taking the top spot, and the ID.7 placing third with 5,879 registrations, up 657% from January 2024.

Kia’s mass-market EV3h launched in late 2024, took fourth with 5,792, while the Skoda Enyaq rounded out the top five.

Chinese automakers, like BYD and MG, are starting to gain some real traction in Europe. With 37,134 vehicles registered last month, up 52% from January 2024, Chinese brands accounted for 3.7% of the market. That’s up from the 2.4% market share in January 2024.

Although still a relatively small number, combined, it would put them ahead of Ford, which registered 35,790 vehicles in Europe last month.

Electrek’s Take

The ID.4 appears to be making a comeback. After it went back on sale early last month, Volkswagen’s ID.4 was already the third best-selling EV in the US in January behind Tesla’s Model Y and Model 3.

Despite its success in Europe and the US, Volkswagen, like most global OEMs, is struggling in China. VW’s Chinese joint venture with SAIC cut the price of the ID.4 X, its version of the electric SUV sold in China, to under $20,000 (139,900 yuan) this week.

With leases starting as low as $189 per month in the US, it’s no wonder the ID.4 is already a top seller. If you’re ready to check it out for yourself, you can use our link to find deals on the Volkswagen ID.4 in your area.