Starmer's G20 Leadership Offers Crucial Chance to Revive Aid and Debt Relief
Keir Starmer has a vital opportunity to act on aid and debt relief when he picks up the G20 baton, potentially reclaiming Labour's internationalist heart and stopping disillusioned voters from drifting towards the Liberal Democrats and Greens. Since cutting the overseas aid budget to fund higher defence spending, Labour has had little to say on the subject, aside from accepting 0.3% of national income as the new normal.
However, Foreign Office sources insist that behind the scenes, there is a renewed commitment to winning the argument for the impact and benefits of international development. This comes at a propitious moment, with a series of milestones over the next 12 months and more where development campaigners argue the government can work for change, even with a diminished aid budget.
Upcoming Summits and G20 Chairmanship
Development minister Jenny Chapman recently confirmed that the UK will host a summit on development cooperation in the first half of this year, following her attendance at the African Union summit in Addis Ababa. Another UK-convened summit on illicit financial flows will follow. Most importantly, the UK is set to chair the G20 group of economies in 2027, with preparations already beginning quietly in Whitehall.
The G20, which includes members like Brazil, China, and India, has become a key forum for discussions on debt relief and the world financial system. For example, it agreed to a standstill for government debt repayments in 2020 during the Covid pandemic. Yet, this year's chair, Donald Trump, plans to strip away the focus on development and the climate emergency championed by previous chairs from the global South.
Challenges and Opportunities in Debt Relief
With Trump shifting towards a narrower, more nationalised vision, the UK will have to pick up the baton next January at a fraught time. Campaigners believe progress is possible on easing the burden of unsustainable debt, a key aim of the Make Poverty History push. Analysis by Debt Justice shows that average debt repayments for countries in the global South hit 19.2% of government revenue in 2025, the highest level since 1990.
The G20's Common Framework for renegotiating unsustainable debts is lengthy and cumbersome, often held hostage by private-sector bondholders. For instance, Ethiopia faces legal action from private creditors in London five years after requesting debt restructuring. Campaigners demand UK legislation to force private sector creditors to participate in renegotiations, with a bigger prize being outright debt relief or capping repayments at a percentage of revenues.
Global Conversations and UK's Role
There are increasing discussions about greater global south sovereignty over development, such as Ghanaian president John Dramani Mahama's "Accra Reset." Romilly Greenhill, director of Bond, argues this is a timely moment for the UK to demonstrate its value as an inclusive convener and rebuild relationships with lower income countries post-aid cuts. She highlights tax cooperation and reform of Bretton Woods institutions as key issues.
Matthew Martin, director of Development Finance International, adds that the UK should focus on restoring the G20 as a decision-making forum for debt, climate, and inequality crises. These complex issues require deft politics, but the prize could be great, showing that new, fairer alliances can be forged. Even if Labour's efforts are in vain, the diplomatic work could reconnect the party with its internationalist heart.
