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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.

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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.

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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.”

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.

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“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.”

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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.

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.

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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.

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 is a political correspondent

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.

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5 countries where crypto is (surprisingly) tax-free in 2025

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5 countries where crypto is (surprisingly) tax-free in 2025

5 countries where crypto is (surprisingly) tax-free in 2025

Looking to live tax-free with crypto in 2025? These five countries, including the Cayman Islands, UAE and Germany, still offer legal, zero-tax treatment for cryptocurrencies.

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Children with special needs will ‘always’ have ‘legal right’ to support, education secretary says

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Children with special needs will 'always' have 'legal right' to support, education secretary says

The education secretary has said children with special needs will “always” have a legal right to additional support as she sought to quell a looming row over potential cuts.

The government is facing a potential repeat of the debacle over welfare reform due to suggestions it could scrap tailored plans for children and young people with special needs in the classroom.

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Speaking in the Commons on Monday, Bridget Phillipson failed to rule out abolishing education, health and care plans (EHCPs) – legally-binding plans to ensure children and young people receive bespoke support in either mainstream or specialist schools.

Laura Trott, the shadow education secretary, said parents’ anxiety was “through the roof” following reports over the weekend that EHCPs could be scrapped.

She said parents “need and deserve answers” and asked: “Can she confirm that no parent or child will have their right to support reduced, replaced or removed as a result of her planned changes?”

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Sophy’s thought on whether to scrap EHCPs

Ms Phillipson said SEND provision was a “serious and complex area” and that the government’s plans would be set out in a white paper that would be published later in the year.

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“I would say to all parents of children with SEND, there is no responsibility I take more seriously than our responsibility to some of the most vulnerable children in our country,” she said.

“We will ensure, as a government, that children get better access to more support, strengthened support, with a much sharper focus on early intervention.”

ECHPs are drawn up by local councils and are available to children and young people aged up to 25 who need more support than is provided by the Special Educational Needs and Disabilities (SEND) budget.

They identify educational, health and social needs and set out the additional support to meet those needs.

In total, there were 638,745 EHCPs in place in January 2025 – up 10.8% on the same point last year.

‘Rebel ready’

One Labour MP said they were concerned the government risked making the “same mistakes” over ECHPs as it did with the row over welfare, when it was eventually forced into a humiliating climbdown in the face of opposition by Labour MPs.

“The political risk is much higher even than with welfare, and I’m worried it’s being driven by a need to save money which it shouldn’t be,” they told Sky News.

“Some colleagues are rebel ready.”

The MP said the government should be “charting a transition from where we are now to where we need to be”, adding: “That may well be a future without ECHPs, because there is mainstream capacity – but that cannot be a removal of current provision.”

Later in the debate, Ms Phillipson said children with special educational needs and disabilities would “always” have a “legal right” to additional support as she accused a Conservative MP of attempting to “scare” parents.

“The guiding principle of any reform to the SEND system that we will set out will be about better support for children, strengthened support for children and improved support for children, both inside and outside of special schools,” she said.

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“Improved inclusivity in mainstream schools, more specialist provision in mainstream schools, and absolutely drawing on the expertise of the specialist sector in creating the places where we need them, there will always be a legal right … to the additional support… that children with SEND need.”

Her words were echoed by schools minister Catherine McKinnell, who also did not rule out changing ECHPs.

She told the Politics Hub With Sophy Ridge that the government was “focused on reforming the whole system”.

“Children and families have been left in a system where they’ve had to fight for their child’s education, and that has to change,” she said.

She added that EHCPs have not necessarily “fixed the situation” for some children – but for others it’s “really important”.

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Government to ban ‘appalling’ non-disclosure agreements that silence victims of abuse at work

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Government to ban 'appalling' non-disclosure agreements that silence victims of abuse at work

Victims will no longer have to “suffer in silence”, the government has said, as it pledges to ban non-disclosure agreements (NDAs) designed to silence staff who’ve suffered harassment or discrimination.

Accusers of Harvey Weinstein, the former film producer and convicted sex offender, are among many in recent years who had to breach such agreements in order to speak out.

Labour has suggested an extra section in the Employment Rights Bill that would void NDAs that are intended to stop employees going public about harassment or discrimination.

The government said this would allow victims to come forward about their situation rather than remain “stuck in unwanted situations, through fear or desperation”.

Zelda Perkins, former assistant to Harvey Weinstein, led the calls for wrongful NDAs to be banned. Pic: Reuters
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Zelda Perkins, former assistant to Harvey Weinstein, led the calls for wrongful NDAs to be banned. Pic: Reuters

Zelda Perkins, Weinstein’s former assistant and founder of Can’t Buy My Silence UK, said the changes would mark a “huge milestone” in combatting the “abuse of power”.

She added: “This victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.”

Deputy prime minister Angela Rayner said the government had “heard the calls from victims of harassment and discrimination” and was taking action to prevent people from having to “suffer in silence”.

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Weinstein found guilty of sex crime in retrial

An NDA is a broad term that describes any agreement that restricts what a signatory can say about something and was originally intended to protect commercially sensitive information.

Currently, a business can take an employee to court and seek compensation if they think a NDA has been broken – even if that person is a victim or witness of harassment or discrimination.

“Many high profile cases” have revealed NDAs are being manipulated to prevent people “speaking out about horrific experiences in the workplace”, the government said.

Announcing the amendments, employment minister Justin Madders said: “The misuse of NDAs to silence victims of harassment or discrimination is an appalling practice that this government has been determined to end.”

The bill is currently in the House of Lords, where it will be debated on 14 July, before going on to be discussed by MPs as well.

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