Overseas aid may be held back

Cabinet Office Minister Francis Maude was expected to reveal the measure in a speech promoting Government transparency and openness in developing countries.

It is hoped the condition, which will be attached to the UK’s £8.4bn foreign aid budget, will also help to fight corruption following criticism of poor transparency in a number of aid-receiving nations.

Mr Maude was to reveal the measures in a speech to global delegates at the launch of the Open Government Partnership in New York yesterday.

Speaking before the meeting he said: “Transparency can be transformative. It can help build trust, efficiency and save lives.”

Under the new commitment, Britain will consider whether a country is making progress on transparency before it approves budget support. Countries will need to show they are working on plans to release government data, introduce or implement freedom of information laws and disclose details of how foreign aid is spent.

Five per cent of UK funds donated to each country will also be ringfenced and spent on transparency initiatives.

Mr Maude will also announce plans that will see more British government departments publish information on aid budget spending to allow taxpayers a better understanding of it.