Why has the coalition's aid bill been delayed again?

The Tories have put politics before the interests of the world's poorest.

According to weekend newspaper reports, the bill enshrining in law the UK’s commitment to the UN target for international aid spending of 0.7 per cent will be absent from next month’s Queen’s Speech. It’s not just NGOs under that impression, even the FT political team were confirming it.

A source close to International Development Secretary Andrew Mitchell is quoted as saying that: “There's no question of a coalition split here. The bill is ready to go, subject to parliamentary time”. The same line was put out by DIFD’s press office, blaming “the business managers” as if the decision was nothing to do with them. Mitchell himself told the Sun the same thing last month.

These “business managers” are surely the Office of the Leader of the House of Commons, who like DFID, take their orders from No. 10. The buck stops with the Prime Minister and he has already presided over the breaking of his manifesto commitment on this issue. On page 117 of the Conservative manifesto which says:

A new Conservative government will be fully committed to achieving, by 2013, the UN target of spending 0.7% of national income as aid. We will stick to the rules laid down by the OECD about what spending counts as aid. We will legislate in the first session of a new Parliament to lock in this level of spending for every year from 2013.

This session has lasted almost two years and is one of the longest in Parliamentary history. The bill is short, with just a handful of clauses. It has already had pre-legislative scrutiny from the international development select committee and there is cross-party consensus. There is no prospect of it being overturned in the Lords. It could probably be passed on a one-line whip on a Thursday afternoon or Friday morning, with Labour and Lib Dem support.

So the weekend’s reports put the focus back on to the role that the Lib Dems are playing in making the coalition more, rather than less progressive. They too are bound by the coalition agreement, which says on page 22:

We will honour our commitment to spend 0.7% of GNI on overseas aid from 2013, and to enshrine this commitment in law.

The suggestion is that the Lib Dems are prioritising Lords reform in their pre-Queen’s Speech negotiations so No. 10 are shelving the aid legislation in order to avoid a second Tory backbench rebellion. The line will be, “what matters is reaching 0.7 per cent in 2013, not legislating for it” but it was the legislation that was promised by all three parties in their manifestos and if it really doesn’t matter, why delay the vote?

The last time they were in office, the Conservatives halved the aid budget. Labour trebled it. The reason the Conservatives made the promise was to achieve all-party consensus and put the issue beyond doubt. The predicted backbench Tory rebellion, coming hot on the heels of the recent “caravan tax” revolt and the more visible EU referendum vote, would be popular with the public. But it would be damaging for the Tory modernisers, which is why those pesky ‘business managers’ could frankly do without it.

Richard Darlington was Special Adviser at DFID 2009-2010 and is now Head of News at IPPR - follow him on Twitter:@RDarlo

International Development Secretary Andrew Mitchell (C) speaks with locals during his visit at a Mother's Home Free education centre in Burma. Photograph: Getty Images.

Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

Photo: Getty
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Love him or loathe him, Britain needs more Alan Sugar

Big business is driving down wages, failing to invest, and funnelling rewards to the richest.  Entrepreneurs - and the state - need to fill the gap. 

The business baron who loves a bust-up has just been hired by Her Majesty’s Government to tour the country inspiring the next generation of apprentices. And he’s got his work cut out for him.  

Britain is loads more enterprising than it used to be - but the truth is, we’re miles behind our rivals. The good news is that Britain boasts nearly two million more firms than at the turn of the century. Over 40 per cent of Europe’s “unicorns” (new firms worth over $1 billion) are UK based. And by the next election, there will be more self-employed people than public service workers. 

But, here’s the bad news. Globally, we’re only 48th out of 60 in the global enterprise league table - and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America - google.co.uk and amazon.co.uk. Worst of all, according to new House of Commons library figures which I commissioned this week, over a million people have left entrepreneurial activity in the last three years. 

Yet in my new history of British capitalism, Dragons, published today, I show how we’re a nation built by some of the greatest entrepreneurs on the planet. They were the buccaneers like Robert Rich, who built the trading companies and colonies of north America. The traders like Thomas Diamond Pitt who built old multi-nationals like the East India Company. They were industrial revolutionaries like Matthew Boulton who perfected the steam engines, and capitalists like Nathan Rothschild who built the bond market. Down the ages, there were of course great rogues and fraudsters, slavers, opium dealers and imperialists, like George Hudson, William Jardine and Cecil Rhodes. And through the centuries, women were in particular, were frozen out of the power structures of the market. 

But, throughout our past, great visionaries like George Cadbury, William Lever and John Spedan Lewis not only created new wealth but invented new ways to share it, from Port Sunlight to Bournville, to the board rooms of the John Lewis Partnership. 

Theirs is the entrepreneurial spirit we are going to need to rebuild Britain. Why? Because we can no longer leave the task to big business. Big business is driving down wages, failing to invest, and funnelling rewards to the richest. Today, UK firms are sitting on an extraordinary £522 billion in cash. And that’s after they lavished out £100 billion in share buy-backs in 2014. According to Larry Fink, the head of Black Rock which is the world’s biggest investment manager, the gargantuans of the global economy are simply failing to invest in the new jobs and industries of the future. 

So we’re depending on our entrepreneurs to turn new ideas into new industries and new industries into new jobs - whether it is in big data, cyber-security, driverless cars, the internet of things, or genetic medicine. It’s not just good for progress. It’s good for jobs. In fact, if our young people today were as entrepreneurial as their counterparts in Germany or America, its estimated they would create an extra 100,000 jobs. 

The big lesson from 600 years of the history of capitalism is simple: entrepreneurs make history - by inventing the future. So we need the government to start doing an awful lot more for the enterprise economy; spreading enterprise education, investing more in science, shifting government contracts to small high growth firms, and sorting out the banking system. But if we want a better future for Britain, we need an awful lot more entrepreneurs to do well. And so we need AlanSugar to succeed.  

Dragons: Ten Entrepreneurs Who Built Britain is published by Head of Zeus today

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.