British Council’s £197m debt should mostly be written off, MPs say
Summary
The UK House of Commons Public Accounts Committee urged ministers to consider converting most of the British Council’s £197m debt into a grant or similar support. MPs said the council’s finances remain precarious and called on the Foreign, Commonwealth and Development Office and the council to agree on a plan for its future.Key Facts
- The council’s £60m loan from the FCDO, issued during the Covid-19 pandemic, has grown to £197m.
- The loan was due to be repaid in 2026 but was restructured for repayment over 15 years.
- The council forecasts it will not make an operating surplus until 2029–30.
- The council plans further staff cuts, asset sales and closures in nine countries.
- More than 2,000 full-time equivalent posts have been lost since 2021, and planned cuts would bring staffing to almost half its 2020 level.
- The council operates in just under 100 countries and says it reaches more than 700 million people each year.
- FCDO grant-in-aid accounts for about 15% of the council’s annual revenue; most income comes from teaching and exams.
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