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.
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.
Please use Chrome browser for a more accessible video player
0:52
The cuts to USAID mean the charity will have to halve its operations in Gaza and the West Bank, the Save the Children boss told Sky News.
“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.”
X
This content is provided by X, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable X cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to X cookies.
To view this content you can use the button below to allow X cookies for this session only.
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.
More from Politics
“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.”
Please use Chrome browser for a more accessible video player
0:52
The cuts to USAID mean the charity will have to halve its operations in Gaza and the West Bank, the Save the Children boss told Sky News.
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.
Please use Chrome browser for a more accessible video player
1:55
Does it matter that foreign aid has been cut in the UK?
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.
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
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.
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.
Dr Lade Smith, president of the RCP, said: “The RCP has reached the conclusion that we are not confident in the Terminally Ill Adults Bill in its current form, and we therefore cannot support the Bill as it stands.”
The move is significant because, under the bill’s current stipulations, a panel including a psychiatrist would oversee assisted dying cases.
The RCP outlined a number of issues it had with the current bill, including: the bill not making provision for unmet needs, whether assisted suicide is classed as a treatment or not, what the psychiatrists’ specific role on the panel would be, and the increased demand the bill puts on psychiatrists.
If the college support remains withdrawn, and the bill passes, it isn’t clear what effects it may have.
More on Assisted Dying
Related Topics:
Kim Leadbeater, the MP behind the bill, has confirmed it will include a clause that means anyone who does not want to be involved in the process will not have to do so.
Supporters of the bill argue it would ease the suffering of dying people, while opponents argue it would fail to safeguard some of the most vulnerable people in society.
Image: MP Kim Leadbeater talking to Sky News
Questions over the bill
The more prominent role of a psychiatrist in the bill came about after a previous amendment.
Initially, the bill said that after two independent doctors approved an assisted dying case, it would then need to be further approved by a High Court judge.
Instead, Ms Leadbeater proposed a voluntary assisted dying commissioner that included an expert panel with a psychiatrist.
She said this was a “strength, not a weakness,” but opponents of the bill disagreed, saying removing the High Court judge “fundamentally weakens protections for the vulnerable”.
Friday’s debate was already delayed from 25 April, to give MPs more time to consider amendments.
If the bill passes on Friday, it will move to the House of Lords, where it will undergo similar legislative stages, and if it passes that too, it won’t come into effect until at least 2029, after its implementation was delayed.
AI civil servants and sending human workers out of London are at the heart of the government’s plans to cut costs and reduce the size of the state bureaucracy.
Shrinking the civil service has been a target of both the current Labour and recent Conservative governments – especially following the growth in the organisation during the pandemic.
From a low in 2016 of 384,000 full time workers, in 2024 there were 513,000 civil servants.
The Department for Science, Innovation and Technology is claiming a new swathe of tools to help sift information submitted to public consultations could save “75,000 days of manual analysis every year” – roughly the work of 333 civil servants.
However, the time saved is expected to free up existing civil servants to do other work.
The suite of AI tools are known as “Humphrey”, after Humphrey Appleby, the fictional civil servant in the TV comedy Yes, Prime Minister.
The government has previously said the introduction of AI would help reduce the civil service headcount – with hopes it could save as much as £45bn.
Speaking today, Technology Secretary Peter Kyle appeared to take aim at expensive outsourcing contracts, saying: “No one should be wasting time on something AI can do quicker and better, let alone wasting millions of taxpayer pounds on outsourcing such work to contractors.”
Please use Chrome browser for a more accessible video player
1:47
March: 10,000 officials could go
Move outside of London
Other money-saving plans announced today include moving 12,000 civil servants out of London and into regional hubs – with the government hoping it can save almost £100m by 2032 by not having to pay for expensive leases of prime office space in the capital.
Currently, 95,000 full time civil servants work in London.
Tens of millions of pounds a year are expected to be saved by the closure of 102 Petty France, which overlooks St James’s Park, and 39 Victoria Street, which is near the previous location of New Scotland Yard.
In total, 11 London offices are slated for closure, with workers being relocated to the likes of Aberdeen, Belfast, Darlington, Bristol, Manchester and Cardiff.
The reforms of the civil service are being led by Chancellor of the Duchy of Lancaster Pat McFadden – one of Sir Keir Starmer’s most influential ministers.
Mr McFadden said: “To deliver our plan for change, we are taking more decision-making out of Whitehall and moving it closer to communities all across the UK.
“By relocating thousands of civil service roles we will not only save taxpayers money, we will make this government one that better reflects the country it serves. We will also be making sure that government jobs support economic growth throughout the country.
“As we radically reform the state, we are going to make it much easier for talented people everywhere to join the civil service and help us rebuild Britain.”
The government says it wants senior civil servants out of the capital too – with the aim being that half of UK-based senior officials work in regional offices by the end of the decade.
The government claims the relocations and growth of regional hubs could add as much as £729m to local economies by 2030.
Image: Pat McFadden is leading the changes to the Civil Service. Pic: PA
Union welcome – cautiously
Unions appear to cautiously welcome the changes being proposed.
All of Prospect, the PCS and the FDA say it is positive to see better opportunities outside of the capital.
However, they have asked for clarity around whether roles may be lost and what will be offered to people transferring.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
Fran Heathcote, the general secretary of the PCS union, said: “If these government proposals are to be successful however, it’s important they do the right thing by workers currently based in London.
“That must include guarantees of no compulsory redundancies, no compulsory relocations and access to more flexible working arrangements to enable them to continue their careers should they wish to do so.”
Two US senators are calling on Treasury Secretary Scott Bessent to “exercise [the department’s] authority” and change a provision affecting taxes on corporate holdings of digital assets.
In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested Bessent had the authority to change the definition of “adjusted financial statement income” under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.
“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” said Lummis in a May 13 X post.
May 12 letter to Treasury Secretary Scott Bessent. Source: Cynthia Lummis
According to the two senators, the proposed modification would provide “relief to corporations that invest in digital assets.” Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million to support his 2024 Senate race.
The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”
Senate awaiting second vote on stablecoin bill
The call from the two senators came as lawmakers in the Senate are expected to consider another vote on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act — legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump’s ties to the crypto industry.
Lummis, one of the bill’s co-sponsors, suggested that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days.