The aid agency Concern yesterday said the Budget confirmed its worst fears about cuts in development aid in 1999.
Concern's chief executive, Mr David Begg, said neither the reported threat of resignation by the Minister of State for Development, Ms Liz O'Donnell, nor the protests by the aid agencies had made an impression on the Government.
Mr Begg claimed the Budget figures confirmed those in the Estimates two weeks ago that payments for grant-in-aid for development would be reduced from £70.8 million in 1998 to £66 million next year - a reduction of 7 per cent. He added that funding for humanitarian assistance was being cut by 17 per cent.
In a statement, Mr Begg said: "The implications of these cuts for the aid agencies are very serious as, indeed, they are for the Government's own bilateral aid programme. The problem now is that not alone will there be less money available for development but commitments for the future already entered into by the agencies are in jeopardy."
The trust built up with communities in developing countries would be eroded, according to Mr Begg.