A man and a young child pictured at the Manston immigration facility in Kent. Getty
A man and a young child pictured at the Manston immigration facility in Kent. Getty
A man and a young child pictured at the Manston immigration facility in Kent. Getty
A man and a young child pictured at the Manston immigration facility in Kent. Getty

Britain to spend half of foreign aid budget on domestic projects for migrants


Laura O'Callaghan
  • English
  • Arabic

Britain’s spiralling migrant crisis is on track to eat up almost half of its foreign aid budget as the record number of people arriving via illegal routes places unprecedented strain on the system.

But Prime Minister Rishi Sunak said he was optimistic, after meeting French President Emmanuel Macron, that the UK can work with European nations on the migrant challenge.

Mr Sunak said there was “lots” to talk about when they met for the first time on the sidelines of the Cop27 gathering in Egypt.

“I'm actually leaving this with renewed confidence and optimism that working together with our European partners, we can make a difference, grip this challenge of illegal migration and stop people coming illegally,” Mr Sunak said on Monday.

The number of illegal crossings of the busy shipping lanes since the start of the year is nearing 40,000. It is already the highest figure recorded since records began in 2018. There were 28,526 people registered in 2021, while the number in 2020 was 8,404.

“This is an issue that affects many countries. And actually I've been talking to other European leaders as well about our shared challenge of tackling illegal migration,” Mr Sunak said.

  • The number of migrants crossing the English Channel from northern Europe has reached record-breaking figures as people in Britain are experiencing an exceptionally hot summer. PA
    The number of migrants crossing the English Channel from northern Europe has reached record-breaking figures as people in Britain are experiencing an exceptionally hot summer. PA
  • A lady carries a toddler to a bus after a group of people thought to be migrants were brought in to Dover, Kent, on the south-east English coast. PA
    A lady carries a toddler to a bus after a group of people thought to be migrants were brought in to Dover, Kent, on the south-east English coast. PA
  • A group of migrants are brought in to Ramsgate, Kent, on August 1 - the day on which almost 700 migrants crossed the Channel to the UK in a single day, a record for the year so far. PA
    A group of migrants are brought in to Ramsgate, Kent, on August 1 - the day on which almost 700 migrants crossed the Channel to the UK in a single day, a record for the year so far. PA
  • It was only the second time in 2022 that the daily figure has topped 600. PA
    It was only the second time in 2022 that the daily figure has topped 600. PA
  • A woman carries a newborn baby in a life cradle as she is brought in to Dover on a Border Force vessel in July. PA
    A woman carries a newborn baby in a life cradle as she is brought in to Dover on a Border Force vessel in July. PA
  • About 3,683 migrants made the crossing on 90 boats in July, the highest monthly total this year. PA
    About 3,683 migrants made the crossing on 90 boats in July, the highest monthly total this year. PA
  • A warehouse in Dover for boats used by people trying to cross the Channel. PA
    A warehouse in Dover for boats used by people trying to cross the Channel. PA
  • Migrants hold up an inflatable boat before attempting to cross the Channel to Britain, near the northern French city of Gravelines, in July. AFP
    Migrants hold up an inflatable boat before attempting to cross the Channel to Britain, near the northern French city of Gravelines, in July. AFP
  • A police officer stands guard on the beach at Dungeness, England, as migrants get off a lifeboat after they were picked up at sea in June. AFP
    A police officer stands guard on the beach at Dungeness, England, as migrants get off a lifeboat after they were picked up at sea in June. AFP
  • A group of people thought to be migrants walk up the beach after being brought in to Dungeness in May. AP
    A group of people thought to be migrants walk up the beach after being brought in to Dungeness in May. AP
  • Migrants on the beach at Dungeness, after crossing the English Channel in an inflatable dinghy in January. Reuters
    Migrants on the beach at Dungeness, after crossing the English Channel in an inflatable dinghy in January. Reuters

“And I think there is an opportunity for us to work closely, not just with the French but with other countries as well.

“By working together with our European partners, we can make a difference, grip this challenge of illegal migration and stop people coming illegally.”

The huge influx of boats crossing the English Channel, coupled with the cost of hospitality for Ukrainians fleeing the Russian invasion, will push the Treasury’s spending on UK immigration to as much as £3.5 billion.

By being considered part of Britain’s contribution to international development, the sum will make up around half of the foreign aid budget, The Times reported.

About 0.3 per cent of gross national income (GNI) will be spent on projects overseas, less than the government’s target of 0.5 per cent.

The UN has a target for countries to spend 0.7 per cent of their GNI on an entire overseas aid package. The UK’s slashed its contribution to 0.5 per cent during the Covid-19 pandemic.

Business Secretary Grant Shapps said rules on foreign aid spending with regard to migrants in the UK have not changed.

Speaking to Times Radio on Monday, he said “more money” is being spent in that way. It had “always been the case” that some of the cash has been invested in migrants seeking a new home in Britain, he said.

“Actually, the rules on the way that foreign aid spending works are extremely strict,” he said.

“So, there’s no change in rules. What we do know, of course, is that too many people have been making that incredibly perilous, dangerous journey across the Channel with smugglers. So, that has led to more money being spent in that way. But it’s not a change in the rules in any sense.”

The reductions to Britain's foreign aid budget affected the amount of cash allocated to overseas projects in places such as Afghanistan, Yemen, Ethiopia and the Palestinian Territories.

Vital projects across Africa, where the UK has historically been a large provider of aid, took a big hit.

Problems at UK centre

  • A person gestures through a fence at the immigration processing centre in Manston, Kent in southern England. Reuters
    A person gestures through a fence at the immigration processing centre in Manston, Kent in southern England. Reuters
  • Security staff work to cover the view of people thought to be migrants in the Manston centre. PA
    Security staff work to cover the view of people thought to be migrants in the Manston centre. PA
  • An aerial view of the facility in Manston. PA
    An aerial view of the facility in Manston. PA
  • Seven hundred people were moved to the centre for safety reasons after incendiary devices were thrown at a Border Force migrant centre in Dover on Sunday. Reuters
    Seven hundred people were moved to the centre for safety reasons after incendiary devices were thrown at a Border Force migrant centre in Dover on Sunday. Reuters
  • A man holds up a baby in the immigration processing centre. Reuters
    A man holds up a baby in the immigration processing centre. Reuters
  • A woman at the Manston centre. Reuters
    A woman at the Manston centre. Reuters
  • A tent inside the processing centre. Reuters
    A tent inside the processing centre. Reuters
  • The entrance to the Manston immigration holding facility. AP
    The entrance to the Manston immigration holding facility. AP

In the UK, dire conditions at the Manston immigration facility in Kent have put Channel crossings in the spotlight.

Built to hold 1,600 passing through over a 24-hour period, the site has recently hosted as many as 4,000 men, women and children, some for weeks on end. Lack of hygiene has resulted in cases of diphtheria and scabies while frustration among detainees has led to unrest.

Home Secretary Suella Braverman claimed the UK’s asylum system is “broken” and illegal immigration is “out of control” as she defended the government’s treatment of migrants in the face of criticism.

Conservative MPs joined opposition lawmakers in hitting out at the Home Office’s handling of the crisis, which has left the system for dealing with asylum seekers and refugees bursting at the seams.

Ms Braverman stoked tensions by declaring there was an “invasion” of migrants on Britain's south-eastern coast.

Mr Shapps said the situation at Manston was “tipping into becoming an unofficial detention centre” when he served as home secretary for a six-day period last month.

He told BBC Breakfast that he was determined to ensure operations at the facility were kept in line with the law and he instituted changes by “both moving people out but also the running of the centre itself to ensure that it wasn’t a detention centre”.

“Those are decisions that I very quickly made,” he said. “Actually, the home secretary subsequently has continued to make the same changes to make sure that those numbers are brought down.”

In an interview with Sky News, Mr Shapps said he was advised Britain was “in danger” of breaking the law over its processing of migrants at Manston.

Asked why he was keen to move migrants into hotels while he was in the role, he said: “Simply that we’ve got to be careful not to break the law ourselves by detaining people who are able to be outside of that — well, it’s not a detention centre, but a processing centre at Manston.”

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  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
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The years Ramadan fell in May

1987

1954

1921

1888

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: November 07, 2022, 4:14 PM