The government is set to address a legal challenge regarding its proposed reductions to foreign aid just days before the upcoming spending review scheduled for June.

The Foreign, Commonwealth and Development Office (FCDO) has been warned of a potential judicial review initiated by the One Campaign, a nonprofit organization, which has issued a pre-action letter concerning the government’s plans to reduce aid spending to 0.3% of GDP.

The deadline for the government to respond to the legal challenge passed last week, with the FCDO indicating it will provide an explanation regarding the legality of the proposed cuts by June 6, ahead of the spending review set for June 11.

Rachel Reeves faces increasing pressure to allocate resources for various ministerial departments as their three-year budgets are determined in the review. Labour has proposed utilizing £6 billion from the foreign aid budget to bolster defense spending, which would reduce the UK’s overseas aid to the lowest level since 1999.

Under the latest plans, the foreign aid budget will decrease from 0.5% of national income to 0.3% by 2027 to accommodate an increase in defense funding from 2.3% of GDP to 2.5%.

The One Campaign argues that this new reduction may violate the International Development (Official Development Assistance Target) Act 2015, which mandates a minimum spending of 0.7% of GDP for foreign aid. The government previously lowered the aid budget to 0.5% of GDP during the pandemic in 2021, citing a clause that permits temporary departures from the spending target during fiscal emergencies.

According to the One Campaign, the latest cut to 0.3% of GDP could breach the act, as the government has characterized its defense funding needs as a permanent expense. Reeves has indicated a desire for an additional £13 billion for the defense budget to reach 3% of GDP “in the next parliament.” The Chancellor has stated that the government intends to restore the 0.7% commitment when feasible.

Adrian Lovett, executive director of the One Campaign, emphasized the necessity for the government to demonstrate compliance with the law and to conduct thorough assessments of the human impact of these aid cuts, stating, “These reductions will severely affect some of the world’s most vulnerable populations and jeopardize security and prosperity in the UK.”

As pressures mount on Reeves to identify additional funding sources following the government’s reversal on pensioners’ winter fuel allowance cuts last week, there are calls from some Labour MPs for financial strategies, such as leveraging the UK’s substantial foreign exchange reserves, to aid global institutions like the World Bank.

Anneliese Dodds, Labour’s former development minister, resigned earlier this year after the government slashed the foreign aid budget by 40%. Baroness Chapman of Darlington, who succeeded Dodds, indicated that the 0.7% GDP target is unlikely to be reinstated soon, declaring that “the days of the UK government being seen as a global charity” are over in the House of Commons last week.