Oliver Letwin

Efficiency savings totalling more than £800 million a year could be made in the government's spending on international aid, the Conservatives have said.

The claim came as the party published the latest findings of the efficiency review led by company troubleshooter David James.

The review concluded savings totalling £223 million could be made by channelling more aid through outside organisations such as charities.

A further £100 million could be save by reducing spending on policy programmes, while £20 million would come from tightened policy and governance requirements.

Some £366 million would be saved by implementing the efficiency measures already suggested by the government's Gershon review.

Shadow chancellor Oliver Letwin said the party would match the government's spending plans for the Department for International Development over the years to 2007/08. 

"Furthermore, we will work towards the target of 0.7 per cent of GDP in aid by 2013," he added.

"But, of course, this is not enough. We don’t just need more aid. We need better aid.

"Altogether our value for money plan in international development will save £800 million every year, every penny of which will be redirected to where it does the most to reduce global poverty.

"I am confident that, in tandem with our spending commitments, the result will be a substantially more effective aid effort than the government's current plans would provide."

Fair trade

Party leader Michael Howard stressed the need for fair trade as a key way of helping the development of poorer countries.

An "advocacy fund" could also be established to help poorer countries in their negotiations at the World Trade Organisation, he said.

"Trusting free enterprise; upholding the rule of law; accepting our moral duty to help those less fortunate – these are the values which will enable the global community to tackle world poverty," Howard added.

"The World Trade Organisation has ushered in a rules based system for deciding trade disputes. Might is no longer right. 

"But, all too often, poor countries are not able to take full advantage of the system because they lack the necessary expertise.  That is not fair.

"I believe that we should set up an advocacy fund paid for by the West to help the poorer countries fight their corner in trade disputes and international negotiations.

"It would help them make the most of this rules based system – making a real contribution to fairer trade."