The Public Accounts Committee warned that treating the British Council strictly as a commercial debtor jeopardises its core international operations. Despite having already eliminated a third of its workforce and liquidating historical assets, the institution does not project an operating surplus until 2029–30. Lawmakers criticised the government for lacking a positive strategic vision and urged ministers to replace the combative dynamic with genuine collaboration. Further cost-cutting measures, including closures across nine countries, continue to spark staff strikes and protests across Europe.
Key points
Converting the outstanding debt into a direct grant is vital to secure the council's long…: Converting the outstanding debt into a direct grant is vital to secure the council's long-term financial viability.
The government risks undermining an estimated £1bn in annual soft power by failing to pro…: The government risks undermining an estimated £1bn in annual soft power by failing to provide strategic backing.
Severe operational downsizing has halved the organisation's workforce since 2020 while tr…: Severe operational downsizing has halved the organisation's workforce since 2020 while triggering ongoing industrial action across Europe.
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Ministers should explore writing off a crippling £197m loan to the British Council by converting as much of it as possible into “a grant or similar”, MPs have said.
The Commons public accounts committee said the government lacked a “positive vision” for the council, whose soft power value to the UK is put at £1bn a year. The MPs called on the Foreign, Commonwealth and Development Office (FCDO) to set out what more it could do to support the council and its work.
Despite slashing a third of its headcount and selling off historical assets, the council’s future remains precarious because a £60m Covid-era FCDO loan on commercial terms has grown to £197m.
The loan was agreed by Boris Johnson’s Conservative government when the pandemic shuttered the council’s English teaching and exams business overseas. The loan was due to have been repaid this year but was restructured to be cleared over the next 15 years.
Even with a turnaround plan to reduce staffing by a further 25% as well as dispose of more assets and close operations in nine countries,…
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