Key facts
- MPs recommended converting most of the British Council's £197 million debt into a grant.
- The council's soft power value to the UK is estimated at £1 billion annually.
- The debt originated from a £60 million Covid-era loan that has since grown.
- The British Council forecasts it will not generate an operating surplus until 2029-30.
- Planned job losses will result in a near halving of staff numbers since 2020.
Lawmakers have urged the UK government to consider writing off the majority of the British Council's £197 million debt by converting it into a grant. The Commons public accounts committee stated that the Foreign, Commonwealth and Development Office (FCDO) should explore this option, highlighting the council's significant annual soft power contribution to the UK, estimated at £1 billion. The debt stems from a £60 million loan provided during the Covid-19 pandemic, which has since escalated. Despite efforts to reduce costs, including staff cuts and asset disposals, the council anticipates not achieving an operating surplus until the 2029-30 financial year. The committee also called for a clearer future vision for the council and improved collaboration between it and the FCDO.