Ed Miliband will take up the United Kingdom’s seat as governor on the board of the World Bank, signalling that the government intends to place international development and the climate emergency at the centre of its overseas policy despite widespread reductions in aid spending.
Personal leadership from the foreign secretary
The foreign secretary, who previously served as energy and net zero secretary in Sir Keir Starmer’s government, has said he will exercise personal leadership over the UK’s approach to global finance and adaptation to the climate crisis. Traditionally the UK governor role at the World Bank has been held by a junior minister, making this a notable elevation in political priority.
“International development is not an add-on to British foreign policy – it is central to it,”
Mr Miliband framed his appointment as a signal that London intends to play a serious role on development and climate issues at the multilateral bank. The statement comes at a moment when the UK’s overseas aid budget is undergoing dramatic change, with cuts that will reconfigure the country’s bilateral relationships.
Magnitude and targets of the cuts
The policy shift is complicated by plans to reduce the UK’s international development spending from 0.5% to 0.3% of gross national income (GNI) through to 2029. Official figures set out steep reductions to bilateral aid for a number of countries and categories:
- Overall aid reduction: cuts amounting to around £6.5bn between 2024/25 and 2028/29.
- Africa: total bilateral aid to African countries falls from £1.6bn to under £700m.
- Climate finance: UK climate aid reduced from £11.6bn across five years to 2026 to £6bn over the next three years.
Nine African states will see their bilateral aid cut by more than 80%. The countries specifically named include:
- Kenya: down by 93%
- Tanzania: down by 91%
- Mozambique: down by 90%
- Malawi: down by 90%
- Zambia: down by 88%
Who loses and what it means
The reductions will also hit fragile and conflict-affected states and the least developed countries: aid to fragile and conflict-affected states is set to fall by 34%, while support to least developed countries will be cut by 49%. Some nations facing acute humanitarian pressure will see steep declines — for example, aid to the Democratic Republic of Congo, contending with an Ebola outbreak, will drop by 29%, and assistance to Lebanon will fall by 58%.
| Category | Change |
|---|---|
| Overall bilateral aid to Africa | From £1.6bn to under £700m |
| Total identified aid cuts (2024/25–2028/29) | Approximately £6.5bn |
| Climate aid | From £11.6bn (over five years to 2026) to £6bn (over next three years) |
These reductions juxtapose Mr Miliband’s intent to press climate adaptation and development at the World Bank. The policy choices raise immediate questions about how the UK will sustain influence in multilateral settings while reducing bilateral commitments that underpin relationships with many developing countries.
Implications for UK influence and global finance
Taking a senior role at the World Bank gives the UK access to policy-making in international development finance at a critical moment for climate adaptation. However, the credibility of that leadership may be tested if partners perceive a withdrawal of direct support. How the government balances multilateral engagement with diminished bilateral spending will determine the practical reach of its ambitions on climate and development.
Mr Miliband’s appointment therefore sets up a complex set of responsibilities: to pursue climate and development goals through the World Bank while responding to the diplomatic and humanitarian consequences of domestic fiscal choices on aid.
