The UK will become the first G8 country to achieve the aid target

Today will be remembered as a memorable milestone on that historic journey.

Martin Luther King may have been right to say that the moral arc of the universe bends towards justice, but he also knew that such a virtuous long-term curve would not be achieved without a lot of daily hammering, heaving and shoving.

Today, after the Chancellor confirmed that Britain will become the first G8 country to reach the 43-year-old 0.7% target for international aid as a share of national income, it feels like one of those moments to step back from the hammering and see the shape of the arc. 

I admit: I didn’t get into global campaigning to achieve the 0.7 target. But I quickly realised it was one necessary step along the road towards a goal that really is worth fighting for: an end to extreme poverty. And I also confess it has taken longer than I thought it would. From the first tentative promises to “begin to reverse the decline” in the aid budget made by New Labour in 1997, to the strong leadership of Blair and Brown in 2005 to get other countries behind bold aid targets and a package of other measures, and the remarkable commitment of David Cameron, George Osborne and Nick Clegg since 2010 which has taken this issue out of party politics… it’s been a long road. But today, we can look back and see just how far we’ve travelled.

The arguments remain, of course. There are those who say 0.7 is unnecessary, arbitrary and unaffordable.  But as ONE estimated last year, by reaching 0.7, British taxpayers will put 15.9 million children in school, vaccinate 80 million children against life-threatening diseases, provide safe drinking water for 17 million people and help 77 million get basic financial services, like bank accounts and credit, enabling them to work their way out of poverty for good.

And is 0.7 per cent an arbitrary target? Only in the sense that 70mph is an arbitrary speed limit on the motorway. We can argue about the detail, but the point is that it’s about right. 

As for affordability: it’s 7 pence in every ten pounds of national income. As a proportion of government spending, it is dwarfed by almost everything else. A person earning £30,000 a year contributes about £67 a year to aid, and around £6,595 to everything else. Even in tough times, this is small change that makes a very big difference – and when told the facts about the size of the aid budget, six out of ten people say it is about right or not big enough.

Looking ahead, there are challenges. As the aid budget is pegged to the size of national income, each time the nation’s wealth is revised downwards, aid goes down too. In today’s announcement, £130m was cut from the proposed increase in aid. The Department for International Development can probably just about absorb a hit like that, but it’s a reminder that while the British economy continues to suffer, the world’s poorest people share the burden. And to provide real certainty now about future aid commitments, the right thing to do would be to enshrine the 0.7% target in law, as all three major parties have promised to do in this parliament. The coming Queen’s Speech would be the right time for the Coalition Government to make good on that promise.

Finally, the UK must use this moral authority and political muscle for all it’s worth as they host the G8 this June. The Prime Minister has a great vision for what he can achieve with his G8 presidency. With the necessary political drive, he could help unleash a transparency revolution, so that ordinary citizens have the information they need to hold their governments and others to account, turning resources into results in the fight against extreme poverty. And with other leaders, he can make critical commitments on agriculture and nutrition, putting political weight and financial support behind African-led country plans.  With these two steps in 2013, that vision of an end to extreme poverty will be more achievable than ever.  And today will be remembered as a memorable milestone on that historic journey.


Update, 17:42: The original headline on this piece omitted the word "G8". This has now been rectified.

Photograph: Getty Images

Adrian Lovett is the Europe Executive Director of The ONE Campaign

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.