Anneliese Dodds has quit as international development minister over the government’s decision to cut overseas aid to fund a boost to defence spending.

The prime minister announced this week that defence spending will be increased to 2.5% of GDP by 2027 in a bid to hit 3% in the next Parliament.

To fund it, development assistance aid will be slashed from its current level of 0.5% of gross national income to 0.3% in 2027.

Dodds admitted she knew no “easy paths” to increase defence spending in her resignation letter to Sir Kier Starmer, but that she disagreed with the decision for aid to “absorb the entire burden”.

The Labour MP for Oxford East warned the move would affect the UK’s support for the ongoing crises in Gaza, Sudan and Ukraine, leading to the UK being shut out of multilateral bodies.

She posted on social media platform X: “It is with sadness that I have had to tender my resignation as Minister for International Development and for Women and Equalities.

“While I disagree with the ODA (Overseas Development Assistance) decision, I continue to support the Government and its determination to deliver the change our country needs.”

In her letter, she told Sir Kier that she had waited to resign until after his trip to Washington to meet US President Donald Trump.

Trump was pressuring Europe to increase defence spending at yesterday’s meeting in Washington.

Dodds said the post-war global order had “come crashing down” and that she welcomed an increase in defence spending.

“I stood ready to work with you to deliver that increased spending, knowing some might well have had to come from ODA.

“I also expected we would collectively discuss our fiscal rules and approach to taxation, as other nations are doing.”

However, Dodds said that instead of taking this approach the prime minister had decided to allow the ODA to “absorb the entire burden”.

Though they differ “profoundly” on the decision to international development, Dodds remained “proud” of all Sir Kier has achieved since she backed him as leader of the Labour Party.