Thank you for contacting me about poverty worldwide.
Poverty is one of the most urgent challenges of our time, and it is a sad reality that according to the World Bank, 12 million people around the globe live in extreme poverty. While progress has been made in certain regions, you are right to point out that ongoing conflicts, extreme weather events and growing debt vulnerability are all hindering development.
I am aware of calls to introduce legislation to either compel private creditors to participate in debt relief schemes if a majority of creditors agree, or to ensure private creditors cannot sue debtor countries for more money than they would have received if they had participated in the DSSI. However, in my view, a market-based (contractual) approach to private sector participation in debt restructuring is the best way forward. Indeed, an International Monetary Fund (IMF) Review in September 2020 found this approach has been largely effective. Of course, private creditors should also participate in debt restructurings on terms at least as favourable as bilateral (i.e. country) creditors.
The UK has long championed increased funding, also known as international climate finance (ICF), to support developing countries to tackle and adapt to climate challenges. The last Government committed to spend £11.6 billion in ICF in the five years to 2025-26, targeting four priority areas: clean energy; nature for climate and people; adaptation and resilience; and sustainable cities, infrastructure and transport. I hope to see the new Government uphold this commitment.
Regarding the conflict in Gaza, I welcome the deal which is currently on the table. The UK has long called for a deal such as this one, and I share the view of our diplomats that it is the best way to get the remaining hostages out, bring about a sustainable ceasefire leading to a permanent end to hostilities, and enable a significant scaling up of much-needed humanitarian aid. It is vital that all parties seize this opportunity and move towards a lasting peace which guarantees security and stability for both the Israeli and Palestinian people as swiftly as possible.
The last Government did everything it could to get aid into Gaza as quickly as possible by land, sea and air, including by trebling the UK’s aid commitment to the Occupied Palestinian Territories in the last financial year. I welcome the new Government’s commitment to increasing the amount of aid getting into Gaza, and will be scrutinising the work of Ministers to ensure that this commitment is upheld.
I am also deeply troubled by the situation in Sudan. It may reassure you to know that overall the overall UK aid commitment for Sudan for 2024/25 is £89 million, thanks to a package announced earlier this year by the previous Government. I want to see an end to this appalling conflict, and to alleviating the plight of the Sudanese people. I will be closely monitoring the steps the Government takes towards supporting a peaceful outcome.
Please be assured that I will be following developments in all of the areas you have mentioned, and will continue to support initiatives aimed at tackling extreme poverty worldwide.
Thank you again for taking the time to contact me.
