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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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The three key questions about the China spy case that need to be answered

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The three key questions about the China spy case that need to be answered

The government has published witness statements submitted by a senior official connected to the collapse of a trial involving two men accused of spying for China.

Here are three big questions that flow from them:

1. Why weren’t these statements enough for the Crown Prosecution Service (CPS) to carry on with the trial?

For this prosecution to go ahead, the CPS needed evidence that China was a “threat to national security”.

The deputy national security adviser Matthew Collins doesn’t explicitly use this form of words in his evidence. But he comes pretty close.

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In the February 2025 witness statement, he calls China “the biggest state-based threat to the UK’s economic security”.

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Six months later, he says China’s espionage operations “harm the interests and security of the UK”.

Yes, he does quote the language of the Tory government at the time of the alleged offences, naming China as an “epoch-defining and systemic challenge”.

But he also provides examples of malicious cyber activity and the targeting of individuals in government during the two-year period that the alleged Chinese spies are said to have been operating.

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Witness statements published in China spy trial

In short, you can see why some MPs and ex-security chiefs are wondering why this wasn’t enough.

Former MI6 head Sir Richard Dearlove told Sky News this morning that “it seems to be there was enough” and added that the CPS could have called other witnesses – such as sitting intelligence directors – to back up the claim that China was a threat.

Expect the current director of public prosecutions (DPP) Stephen Parkinson to be called before MPs to answer all these questions.

2. Why didn’t the government give the CPS the extra evidence it needed?

The DPP, Stephen Parkinson, spoke to senior MPs yesterday and apparently told them he had 95% of the evidence he needed to bring the case.

The government has said it’s for the DPP to explain what that extra 5% was.

He’s already said the missing link was that he needed evidence to show China was a “threat to national security”, and the government did not give him that.

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What does China spy row involve?

The newly published witness statements show they came close.

But if what was needed was that explicit form of words, why was the government reticent to jump through that hoop?

The defence from ministers is that the previous Conservative administration defined China as a “challenge”, rather than a “threat” (despite the numerous examples from the time of China being a threat).

The attack from the Tories is that Labour is seeking closer economic ties with China and so didn’t want to brand them an explicit threat.

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Is China an enemy to the UK?

3. Why do these statements contain current Labour policy?

Sir Keir Starmer says the key reason for the collapse of this trial is the position held by the previous Tory government on China.

But the witness statements from Matthew Collins do contain explicit references to current Labour policy. The most eye-catching is the final paragraph of the third witness statement provided by the Deputy National Security Adviser, where he quotes directly from Labour’s 2024 manifesto.

He writes: “It is important for me to emphasise… the government’s position is that we will co-operate where we can; compete where we need to; and challenge where we must, including on issues of national security.”

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In full: Starmer and Badenoch clash over China spy trial

Did these warmer words towards China influence the DPP’s decision to drop the case?

Why did Matthew Collins feel it so important to include this statement?

Was he simply covering his back by inserting the current government’s approach, or was he instructed to put this section in?

A complicated relationship

Everyone agrees that the UK-China relationship is a complicated one.

There is ample evidence to suggest that China poses a threat to the UK’s national security. But that doesn’t mean the government here shouldn’t try and work with the country economically and on issues like climate change.

It appears the multi-faceted nature of these links struggled to fit the legal specificity required to bring a successful prosecution.

But there are still plenty of questions about why the government and the CPS weren’t able or willing to do more to square these circles.

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Trump’s second term fuels a $1B crypto fortune for his family: Report

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SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

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