UK Cuts World Bank Funding by 10% After Slashing Aid Budget

The UK is cutting its £1.98 billion ($2.7 billion) pledge to an arm of the World Bank by 10% and reducing aid to some countries to help cover the cost of increased military spending.

Prime Minister Keir Starmer’s government on Tuesday said it would soften the impact of rolling back its commitment by accelerating the pace of the payments to the International Development Association, which extends low-interest loans to poor countries. That would allow the bank to generate income with the money more quickly, offsetting the effect of the cut, the government said.