Sovereignty: British Indian Ocean Territory
The question
To ask the Chancellor of the Exchequer, whether she has had discussions with Cabinet colleagues on using funding reallocated from the Overseas Development Assistance budget to fund the Chagos settlement.
Answered by Darren Jones
FCDO and the MOD are the lead departments for the Chagos agreement, and must balance any commitments under an agreement against wider priorities in their budgets – and in line with the Managing Public Money framework. OECD Development Assistance Committee (DAC) guidelines on ODA eligibility will continue to be applied in the usual way to any financial obligations arising from an agreement. The Prime Minister recently announced that the UK will spend 2.5% of GDP on defence by the 2027/28 financial year, funded by a reduction in ODA spending to the equivalent of 0.3% of GNI.
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