Still facing precarious finances, British Council’s 197m debt should mostly be written off, MPs say
MPs call for debt relief
A Commons report says ministers should explore turning as much as possible of the British Council’s £197m loan into a grant or similar arrangement. The loan began as £60m in Covid-era funding from the Foreign, Commonwealth and Development Office, on commercial terms.
Committee chair Geoffrey Clifton-Brown said the council needs government help to continue its work, rather than being treated simply as a debtor. He warned that adapting to survive would require the government’s full support.
Cuts have not secured recovery
The council has cut a third of its workforce and sold historical assets, but its financial future remains uncertain. Its turnaround plan includes reducing staffing by another 25%, selling more assets and closing operations in nine countries.
The committee says the council does not expect to generate an operating surplus until 2029–30. Planned job losses would leave its workforce almost half its 2020 size, with more than 2,000 full-time equivalent posts lost since 2021.
Staff protest as funding remains limited
British Council staff across Europe have held widespread strikes and protests against the cuts. The report says the council and the FCDO should closely monitor its position as partners, so it can demonstrate the UK’s commitment to its soft-power work.
Most of the council’s income comes from teaching and exams. FCDO grant-in-aid provides about 15% of annual revenue and supports its charitable aims in cultural relationships, English-language learning and education.
Key points
- MPs want ministers to consider converting most of the British Council’s £197m loan into a grant or similar support.
- The loan grew from £60m in Covid-era FCDO funding on commercial terms.
- The council plans further staff cuts, asset sales and closures in nine countries.
- The council forecasts no operating surplus until 2029–30.