UK Development Policy

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The UK has long been a leader in international development, but recent shifts—from geopolitical tensions to economic pressures—have reshaped its role. The aid budget was cut significantly, and spending has increasingly been directed towards refugee housing costs within the UK. This has left the Foreign, Commonwealth & Development Office (FCDO) grappling with how to advance priorities on climate, poverty, security and health—all within a challenging fiscal context.  

With a new UK government in place, and other major actors stepping back from international commitments; CGD will be developing innovative ideas and concrete proposals to help the UK meet its ambitions and shape a more effective approach to development.

Work by CGD experts has led to a range of improvements in the UK’s development approach. CGD experts were among the first to identify the scale of refugee-hosting costs, which helped to secure an additional £2.5 billion allocation to the aid budget in 2024. Other ideas taken up include; shaping reform at the multilateral development banks; using CGD’s Commitment to Development Index to assess policy coherence; and using development impact bonds and advanced market commitments.