Over 80 charity leaders, parliamentarians, economists, academics and campaigners call for the Prime Minister to back plans to tackle the debt crisis in lower income countries

84 charity leaders, parliamentarians, economists, academics and campaigners including Carla Denyer MP, Ellie Chowns MP, Baroness Mary Goudie, Economist Jayati Ghosh, and the leaders of Bond, Christian Aid, Oxfam GB, Save the Children UK, UNICEF UK, Water Aid and many more, have written an open letter to the Prime Minister calling on him to attend the UN’s Financing for Development conference (FfD4), taking place in Seville, Spain at the end of this month, and support meaningful action on tackling the debt crisis.

The conference is a rare opportunity to push for real, systemic, financial reforms on debt justice, fairer tax rules, and climate finance, so all countries have the resources and power to drive their own development. It is the only global platform where all nations negotiate economic governance on equal terms.

Ahead of the conference, negotiations are taking place on the text of agreement of the outcome document of the conference. The UK has been one of the main blockers in the progress of talks, especially on agreeing to a fairer process for debt negotiations, which includes debt cancellation. As one of only two major legal jurisdictions for sovereign debt, the UK holds significant influence and responsibility and can have a major role in debt reform, with no additional cost to the UK taxpayer.

The letter, first covered by The Guardian, warns that, “without action, debt burdens will continue draining vital public finances in many lower-middle income countries, diverting funds from healthcare, education, social protection, and climate action – all of which exacerbate structural inequalities that ultimately impact women and girls and other marginalised groups, who will lose out the most.”

In light of the government making the political choice to cut the UK aid budget, the UK could act to support the creation of a legal framework to tackle unsustainable and illegitimate debt, since it is cost neutral to the UK exchequer. The letter highlights that this “would strengthen Britain’s relationships and ability to support inclusive economic development through mutually beneficial trading partnerships.”

The letter to the Prime Minister also highlights that the UK has “the power to make a significant positive change on unsustainable debt. As one of only two major legal jurisdictions for sovereign debt, the UK holds significant ability to act unilaterally and multilaterally for transparent, accountable, and equitable debt processes. Reforming UK debt legislation and supporting global financial reform costs the UK taxpayer nothing, all that is required is your willingness to lead.”

The signatories call for the Prime Minister to attend the conference alongside already confirmed global leaders such President Macron, Prime Minister Mark Carney, Ursula von der Leyen and many others. They also call for him to honour the Labour Party’s 2024 manifesto commitments “to repair relationships with developing countries and to restore the UK’s role on the international development stage” and engaging in this process is a key way to do this.

Romilly Greenhill, CEO of Bond, the UK network for organisations working in international development and humanitarian assistance, said:

Following the shortsighted decision to cut the UK aid budget, this government has a responsibility to step up and take decisive action on debt. Low- and middle-income countries have been clear in their calls for FfD4 to deliver fair, timely, and lasting debt relief, and to help prevent future debt crises. The UK must stand in solidarity with countries hardest hit by the unjust debt crisis. Supporting their calls is vital – not just for the global majority, but for a fairer, more stable future for everyone.

Patrick Watt, CEO of Christian Aid, said:

The UK cannot build real partnerships with the Global South while blocking the very reforms those countries are calling for. At FfD4, the government has a choice: stand in solidarity with countries facing debt and climate crises, or cling to outdated power structures that continue to extract more than they give. Supporting fair and inclusive debt relief through a UN debt mechanism and domestic legislation costs the UK nothing – while continued obstruction will further erode credibility, influence, and trust.

ENDS.

Notes for editors

• Read the letter co-ordinated by Bond.
• The letter was sent to the Prime Minister on Monday 9 June.
• According to the UN Development Program, 54 countries are in a debt crisis, 32 African countries spend more on debt payments than on healthcare and 25 African countries spend more on debt payments than on education.
• On Tuesday 17 June from 9-11am, Christian Aid, Bond, and the Center for Economic and Social Rights (CESR) will host a press conference on the Financing for Development Conference (FfD). The event will brief journalists on the conference and the issues the conference seeks to address including debt, tax, and climate finance, as well as the highlighting the UK’s critical role in this area. Sign up to attend the press conference in person at the Christian Aid office in London or join online.
• Read Bond’s blog on what the UK needs to do at FfD.
• Read a blog from Save the Children on the action the UK government can take on debt.
• Bond is the UK network for organisations working in international development. Bond unites and supports a diverse network of over 350 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.
• For further information or interviews please contact Jess Salter at [email protected] or call 07392972411.