RISHI Sunak could shortly announce a cut of around £4 billion in the UK’s overseas aid budget for 2021 as he tries to begin reducing the mountain of debt the country is racking up to tackle the coronavirus crisis.

The respected think-tank, the Institute for Fiscal Studies, has forecast that the UK’s budget deficit could top £100 billion by the time of the 2024 General Election but if the pandemic were to continue for a long period, then this gap between income and revenue could be double that figure.

As suggestions were made that the Chancellor was eyeing a temporary yearlong cut to the overseas aid budget from 0.7 per cent of national income to 0.5%, ministers did nothing to dismiss them, stressing how it was “legitimate” to look for savings at a time when the public finances were under “huge strain”.

Downing Street insisted the Government remained committed to supporting the world’s poorest people but acknowledged that officials were looking at how the aid budget was spent.

Boris Johnson’s spokesman drew attention to the fact that the legislation enshrining the 0.7% target in UK law explicitly acknowledged it might not always be met.

“In the International Development Act there may be circumstances in which the Government is not able to meet the 0.7% commitment,” he explained. “If that happens the Secretary of State is required under the act to lay a statement in Parliament explaining why the target has not been met.

“The Government is committed to supporting international development and helping the world’s poorest people but we are looking at how the aid budget is spent to ensure it serves the UK’s priorities and represents value for money.”

Earlier, during a round of broadcast interviews, Robert Jenrick, the Communities Secretary, also refused to rule out a temporary reduction even though last year’s Conservative General Election manifesto committed the Government to maintaining the 0.7% target.

“It is legitimate to consider where savings can be made when public finances are under huge strain,” he said.

But Chris Law for the SNP said: “The fight against Covid-19 is a global one and we can only tackle it effectively here at home if we also strengthen our efforts abroad in vulnerable and developing countries.

"Reports that the UK Government plans reverse its commitment to the UN’s 0.7% aid target and make further cuts to the aid budget in the upcoming spending review only risks holding back our efforts to suppress and eradicate the virus.

"At a time when poorer countries and vulnerable people face being disproportionately hit by the coronavirus pandemic, this move sends the wrong message and signals a further decline of the UK's standing on the international stage," added the Dundee West MP.

The UK has previously said it would be cutting its global aid budget by £2.9bn this year due to the economic hit of the coronavirus crisis but that the 0.7% commitment towards international development would still be met.

The spending on Official Development Assistance was set to be £15.8bn this year before the Covid-19 crisis emerged.

The gross national income of the UK in 2019 was £2.17 trillion, meaning a drop from 0.7% to 0.5% would account for more than £4bn.

The 0.7% target was first agreed by the United Nations in 1970, and the UK Government has met the target since 2013. It was enshrined into law under in 2015.