UK still paying China £48 million a year in foreign aid despite transparency concerns

The UK is still paying China £48million a year in foreign aid despite transparency concerns about how the money is being spent and a pledge to cut the sum by 95 per cent, the aid watchdog has revealed.

Payments to Beijing have fallen rapidly – from £82million in 2019 to £48million in 2021/22 – with the Independent Commission for Aid Impact (ICAI) expecting the sum to fall to £10million by the end of next year.

In 2021 former Foreign Secretary Dominic Raab announced aid programming in China would be slashed by 95 per cent.

But the watchdog said that there was still ‘very little information on how aid to China was evolving and what it was being spent on’.

ICAI Commissioner Sir Hugh Bayley, who led the review, warned: ‘While UK aid to China has fallen rapidly in recent years, taxpayers are still not being told clearly how much aid will continue and what it will be spent on.

‘From the limited information shared with us, we’ve established that most aid funding to China from across government has ended. Remaining aid spend will focus on higher education, English language, arts and culture and, to a lesser extent, human rights.

‘Average incomes in China will soon be too high for the country to continue to receive foreign aid and there appears to be no clear government strategy for how to manage this, which could put some of the benefits from past UK development assistance at risk.’

ICAI criticised the British Council for not publishing documents on the implementation and results of its ‘substantial programmes’ in China.

‘Although the UK is insufficiently transparent about its aid to China, it is clear that this has fallen rapidly in recent years, and these reductions are expected to continue in the near future with most departments ending their aid to China,’ the report says.

The government has been under pressure from Tory backbenchers to take a firmer stance on Beijing amid increasingly frosty relations with the rising Asian power.

Shadow International Development Secretary Preet Kaur Gill told the Mail: ‘This report rightly raises concerns about the decline in transparency and accountability of UK aid spending under this government. The Foreign Office spent almost a hundred millions pound of UK aid in China between 2014 and 2018.

‘Labour has consistently urged the government to restore accountability and transparency to British development spending, including a review of BII which was found to have invested in projects linked to the Belt and Road Initiative.

‘Labour will treat taxpayers’ money with the respect it deserves.’

In 2021 former Foreign Secretary Dominic Raab announced aid programming in China would be slashed by 95 per cent

Sarah Champion, chairman of the Commons international development committee, said: ‘I question whether this is the best use of UK ODA given the pressing humanitarian need around the world, and the significant concerns over the treatment of Uyghurs in the region.’

An FCDO Spokesperson said: ‘We stopped direct aid to the Chinese Government in 2011 and the FCDO committed to cut ODA funded programmes in China by 95 per cent from the 2021-22 financial year with remaining funding focused on specific programmes that support British values around open societies and human rights. No funding goes to the Chinese authorities.’

‘We remain committed to transparency and will continue to work closely with ICAI to ensure that all UK aid spending maintains our high standards of transparency and has the greatest impact.’