LONDON

The UK signaled a major shift in its foreign aid strategy—one that redefines its relationship with the Global South amid sharp cuts to its development budget.

Development Minister Jenny Chapman spoke at the G20 Development Ministerial Meeting in South Africa on Friday about the country's new development strategy.

She used the forum to outline the UK’s changing role: less as a donor, more as a "genuine partner and investor."

The new direction, framed as a cornerstone of the government’s "Plan for Change," places economic development at the heart of UK engagement abroad.

“We want to help countries move beyond aid,” Chapman said. “In South Africa, I’ve seen the impact we can have with genuine partnerships, rather than paternalism. Our work is supporting jobs and generating global economic growth and bringing high-quality South African produce to UK shops.”

Her comments reflect a broader recalibration of the UK's international development strategy, which comes at a time of growing fiscal constraint and domestic political pressure.

Earlier this year, Prime Minister Keir Starmer announced plans to reduce the aid budget from 0.5% to 0.3% of national income—a move expected to redirect billions toward increased defense spending.

"The world has changed, and so must we. The UK is taking a new approach to development, responding to the needs of our partners and delivering real impact and value for money for UK taxpayers," she said.

'UK will move from being donor to genuine partner'

A government statement reinforced the pivot, stating: “The UK will move from being a donor to a genuine partner and investor, ensuring every pound spent on aid delivers for the UK taxpayer and the people we support.”

While the rhetoric marks a break from traditional aid models, the practical implications are already being felt.

On Tuesday, as MPs prepared to leave Westminster for the summer recess, the Foreign, Commonwealth and Development Office (FCDO) released an "equality impact assessment" outlining the consequences of the policy shift.

The assessment, based on current year allocations for 2025-26, presents a stark outlook.

Aid organizations and analysts warn that the cuts threaten to unravel critical programs at a time of overlapping global crises—from climate shocks and conflict to surging poverty rates.

The UK’s recalibration echoes trends in other major donor nations. In the US, Donald Trump’s administration has initiated its sweeping reductions to international assistance.