British taxpayers will fund an £80million aid giveaway in Brazil, Chancellor Philip Hammond announced yesterday.
Mr Hammond unveiled the promise during a visit to the ninth-largest economy in the world.
He said the money would help reduce poverty and fund economic development – but last night critics said it was wrong to give cash to richer developing countries such as Brazil.
Backbench Tory MP Peter Bone said: ‘How can this possibly be the right thing to do? It’s one thing to give money to help Syrian refugees near to conflict zones. It’s another entirely to give £80million to the world’s ninth-largest economy. In fact it’s nuts.’
Mr Hammond (pictured) unveiled the promise during a visit to Brazil, the ninth-largest economy in the world
The cash comes from the five-year £1.3billion Prosperity Fund which is designed to improve growth in developing countries. A report by the aid watchdog in February said use of the fund for richer developing countries should be restricted.
The Independent Commission for Aid Impact warned of ‘serious risks’ about the effectiveness of the Prosperity Fund, saying it was ‘fragmented’ and lacked transparency.
Mr Hammond made the announcement in a joint statement with the Brazilian finance minister. They said the cash is designed to ‘support Brazil in targeted areas of its economic development and poverty reduction efforts’.
The statement continued: ‘This partnership will also expand the potential for global trade, catalyse investment and increase opportunities for international business in Brazil, helping to secure Brazil’s economic growth.’ Speaking in Brazil, Mr Hammond added: ‘Today’s dialogue has created exciting new opportunities for partnership between the UK and Brazil, Latin America’s largest economy.
Mr Hammond made the announcement in a joint statement with the Brazilian