By Salma El-Sakka
A cross-party committee of MPs has recommended that the government write off most of the British Council's £197 million debt, warning that the cultural agency's financial future remains precarious despite deep staff cuts and asset sales.
Committee calls for loan conversion
The Commons Public Accounts Committee said ministers should explore converting as much as possible of the £197 million loan from the Foreign, Commonwealth and Development Office (FCDO) into a grant. The committee argued the government lacks a "positive vision" for the council, which it values at £1 billion a year in soft power benefits to the UK.
Financial precarity despite cuts
The loan, originally £60 million and agreed on commercial terms by the previous Conservative government during the pandemic, has grown substantially after the council's English teaching and exams revenue collapsed. Even with a turnaround plan that includes a further 25% staff reduction, more asset disposals, and closure of operations in nine countries, the council does not expect an operating surplus until 2029–30.
Strikes and staff reductions
British Council staff across Europe have staged widespread strikes and protests against the cuts. Since 2021, more than 2,000 full-time equivalent posts have been lost, and the planned additional reductions would nearly halve the workforce compared to 2020 levels.
FCDO relationship and future vision
Committee chair Geoffrey Clifton-Brown said the council needs government help to continue its vital work rather than being pursued as a debtor. The report urged the FCDO and the council to adopt a more collaborative tone and set out a shared positive vision, noting a historic lack of trust between the two bodies.
