Billions in foreign aid to go through British companies A portion of the budget, billions of pounds each year, is to be used to secure the contracts for British firms to build roads, railways, schools, hospitals and other key buildings, according to The Daily Mail. Miss Greening is due to tell the London Stock Exchange the she wishes to see the nation's business "joining the development push" to make a difference and help build responsible trade with developing countries, it has been reported. Her department will be working alongside the Business Department, the Foreign Office, the Confederation of British Industry and the industry itself to see how firms in this country can make a difference abroad, she will say. Since replacing Andrew Mitchell last September, Miss Greening has stressed that if Britain maintains its target of spending 0.7 per cent of national output on aid then it must be spent more usefully. She is due to lift the ban on "tied aid" - which means that the aid money has to be spent in the country which is donating it. The process is frowned upon by the World Bank but used by our competitors including France. By allowing tied aid firms will be able to make the most of emerging markets such as Africa. Britain, and leading firms like Balfour Beatty, is being left behind as countries such as China pay for and build infrastructure across Africa. Miss Greening has already cancelled future assistance to India and earmarked part of the budget to support Ministry of Defence peacekeeping programmes. Aid to crisis countries such as Afghanistan will continue to be targeted at fighting poverty. But some African countries have called on the British Government to fund growth and infrastructure. Ideas to implement the new policy include the creation of development bank which would organise and scrutinise projects. The Government would like the policy to reach Britain's smaller companies, which do not currently have expertise in Africa. A source at DfID last night denied the new direction, adding: "There is no question of a return to tied aid. Apart from anything else it is very bad value for money Two years ago the department announced plans to invest money directly into foreign firms rather than handing it to the Government in order to boos economic growth. The new direction is likely to be unpopular with lobby groups and the Labour party which led the Millennium Development goals designed to end poverty and hunger in poor countries by 2015.