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BP and GlaxoSmithKline lend support to David Cameron’s policy
The chief executives of FTSE firm have written to the Financial Times declaring their support for the UK government’s foreign aid policy.
Signed by BP’s Robert Dudley, BT’s Sir Michael Rake, and GlaxoSmithKline’s Sit Andrew Witty the letter argues that “Developing countries become emerging economies and emerging economies became the engines of future global growth and prosperity”.
The UK’s coalition government has spared the foreign aid budget from its austerity policy and has maintained its commitment of keeping its budget at 0.7% of GDP. Coming ahead of the UK’s annual budget on March 20th the letter will be seen as a rebuke to those who argued that the government should further reduce spending to implement a capital gains tax cut.
Co-ordinated by Save the Children the letter states that foreign aid was “a smart investment” and was the “right thing to do”.
Also signed by Chief executives from rhe Premier League WM Morrison, Pearson, Hammerson, Xstratra and Reckitt Benckiser Brendan Cox, Save the Children’s Director of Policy, said the letter was “much about the private sector saying ‘we work in these markets’”.
The letter comes amidst tension within Prime Minister David Cameron’s senior coalition partner Conservative party. In stark contrast to the Financial Times letter Dr Liam Fox, a former Defence Secretary and prominent backbencher associated with the right of the Prime Minister’s party, has called on the government to end the foreign aid budget’s protected status.
Arguing that cuts were necessary to boost the UK’s economy Dr Fox will say in a speech to the Institute of Economic Affairs that he believes that by “leaving money in people’s pockets, economic activity will follow. People will buy houses, invest for their future or just go shopping.
“Whichever is the case, it’s creating a society that is sustainable for the future in the way that our current – welfare-dependent and debt-ridden – economy is not.
“We should gradually move towards the reduction – or even abolition – of the taxes where the state not only taxes the same money on multiple occasions but discourages the very behaviour that would lead to a more responsible society.”
