The British government faced a storm of criticism in the House of Commons over its aid cut to Yemen.
During a heated debate in Parliament on Tuesday, the Foreign Office was forced to admit that the 60 per cent reduction to £87 million ($121.4m) was “a floor, not a ceiling”.
The concession by the UK’s Minister for the Middle East and North Africa, James Cleverly, came as cross-party politicians condemned the decision that would result in children dying from starvation.
The government announced on Monday that it would reduce its Yemen aid package from £214m.
This led to an urgent question asked by Conservative MP Andrew Mitchell, the former international development secretary.
Mr Mitchell called the reduction an “unconscionable decision” and a “death sentence” for young Yemenis.
“Millions of Yemeni children will now continue the slow, agonising and obscene process of starving to death,” he told the House of Commons.
“The fifth richest country in the world is cutting support by more than half to one of the poorest countries in the world.”
Mr Mitchell said the decision was “not how global Britain acts. We are a generous decent country”.
“We must all search our conscience,” he said.
Mr Mitchell's words that it was “a harbinger of terrible cuts to come” were echoed across the House.
In response to the criticism, Mr Cleverly said the British commitment “represents a floor, not a ceiling”.
“The figures that we've ultimately distributed in previous years exceeded the pledge,” he said.
The government was still looking at how it would distribute the cash, but Britain remained “one of the most generous donating countries in the world", Mr Cleverly said.
The UN told Monday’s aid conference that it was seeking $3.85 billion to prevent famine in Yemen.
Aid groups warned that cutting fund would spark a catastrophe, with six million Yemenis, half of them children, without access to clean water or sanitation.
Saudi Arabia said it would give $430m, the UAE $230m and the US $191m.
Despite the economic downturn, Germany almost doubled its contribution to $241m, compared to $138m last year.
Preet Gill, the shadow international development minister, said Whitehall’s decision “discarded the British people's proud history of stepping up and supporting those in need”.
Layla Moran, the Liberal Democrats’ foreign affairs spokeswoman, condemned the “enormous cut in a year when 400,000 children under 5 might starve to death”.
“This is not just heartless, it also damages the UK international reputation,” Ms Moran said.
She accused the government of “shrinking from its commitments, leaving other more compassionate countries to pick up the slack”.
Many others spoke out against the decision, including former cabinet ministers from the Labour and Conservative parties.
Mr Cleverly repeated that the government had already given more than £1bn to Yemen since the conflict began, but Labour MP Hilary Benn condemned the argument.
“Doing the right thing in the past is not a justification for doing the wrong thing now," Mr Benn said.
"Why is the government doing this when, for example, Germany, which is also facing the same unprecedented economic situation, has managed to pledge twice as much as the UK?”
Mr Cleverly said that Britain gave not only money, but also its international influence.
“There are other resources that we bring … including our voice on the international stage, our lobbying power, our political power and we will continue to work to bring about an end to the conflict,” he said.
The government announced last year that it would reduce the legally binding 0.7 per cent of GDP for overseas aid to 0.5 per cent because of the economic crisis.
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
RESULTS
6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m
Winner: Miller’s House, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m
Winner: Kanood, Adrie de Vries, Fawzi Nass.
7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m
Winner: Gervais, Sandro Paiva, Ali Rashid Al Raihe.
8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m
Winner: Important Mission, Royston Ffrench, Salem bin Ghadayer.
8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”