Brian Mathew

I commend the hon. Member for Southgate and Wood Green (Bambos Charalambous) for organising this debate on a vital and extremely timely topic. As all hon. Members present are likely aware, we face the most acute debt crisis in history. According to CAFOD, more than 3.3 billion people are living in countries where they are forced to spend more on debt servicing than on providing for their citizens. Such high debt-servicing costs prevent those countries from spending on vital public services such as education and health, and investing in sustainable development goals. Private lenders make up the largest group of creditors, with many based in the UK and 90% of their contracts governed by English law. Many hon. Members will also be aware that 2025 has been declared a jubilee year by Pope Francis. It is 25 years since the last jubilee debt forgiveness, known as Jubilee 2000, when 40 countries called for the cancellation of third-world debt. Biblically, an important part of the jubilee celebration was the cancellation of debt to give those in need a fresh start. We are told in the Bible not to be hard-hearted or tight-fisted towards others, but instead to be open-hearted and freely give what is needed. For this jubilee year, Pope Francis has made debt cancellation a priority, stating: “More than a question of generosity, this is a matter of justice.” We must act now to end the vicious cycle that these countries are trapped in. Without being able to invest in development, countries are unable to grow their economies or fully escape debt. Furthermore, while in debt distress, countries may look to quick solutions that involve exploiting or exporting their natural resources to do so—extracting fossil fuels, mining or logging—and, in the process, worsening climate change. That disproportionately affects those in the global south, but also affects us here at home. The UK has a significant role to play in solving this problem. As we have heard, 45% of all foreign sovereign debt is governed under English law. The Government have promised to tackle unsustainable debt and must hold private lenders and creditors accountable for that. Furthermore, the previous Government cut international aid from 0.7% to 0.5% of gross national income—an act that withheld billions of pounds from those most in need. We must restore our aid spending to what it was before, and restore our leadership in the field of international development; in doing so, we will restore our reputation as a kind and generous nation.