David Miliband, the former UK foreign secretary, warned on 17 April 2026 that cuts to overseas aid by countries including the US and the UK will worsen shocks to the global economy, particularly in the wake of the humanitarian crisis sparked by the Iran war, which is affecting countries worldwide, including those in the Middle East and beyond.
The key facts of the situation are that the Iran war has led to a significant humanitarian crisis, with poor and rich countries alike being hit, and cuts to overseas aid will only exacerbate the problem, Miliband said, highlighting the need for countries to maintain their aid commitments to mitigate the effects of the crisis. The cuts to overseas aid are likely to have far-reaching consequences, including increased poverty, hunger, and displacement, which will have a ripple effect on the global economy, affecting not just the countries directly involved in the conflict but also the global economy as a whole. The US and the UK are among the countries that have announced cuts to their overseas aid budgets, which will likely have a significant impact on the ability of humanitarian organisations to respond to the crisis.
The wider context of the situation is that the Iran war has created a perfect storm of humanitarian and economic crises, with the conflict leading to a significant increase in refugee numbers, displacement, and poverty, and the cuts to overseas aid will only serve to worsen the situation. The war has also led to a significant increase in global food and energy prices, which will have a disproportionate impact on poor and vulnerable countries, and the cuts to overseas aid will reduce the ability of these countries to respond to the crisis. The pattern of cuts to overseas aid is also part of a broader trend of decreasing aid commitments by wealthy countries, which will have long-term consequences for global poverty reduction and economic development.
The reaction to Miliband's warning has been swift, with humanitarian organisations and aid agencies calling on governments to reverse their decisions to cut overseas aid, and to increase their commitments to support those affected by the Iran war. The next steps will be crucial, as governments and aid agencies work to respond to the humanitarian crisis, and the implications of the cuts to overseas aid will be closely watched, particularly in terms of their impact on the global economy and the ability of countries to respond to future crises. The UK government has said it will review its aid commitments in light of the crisis, while the US has indicated that it will continue to provide aid to key allies, but the details of its aid commitments remain unclear.
