British Council in financial crisis

The British Council plays a crucial role in connecting the UK to the rest of the world, whether it's through arts, cultural engagement or access to English language training and assessment.

It has existed since 1934 and was initially set up to counter the influence of Axis powers and the growth of fascism across Europe. But the British Council is currently under threat. The organisation was hit badly during Covid with a catastrophic drop in income and now the CEO has announced financial problems caused principally by paying back a loan of £250 million at commercial rates. This was a loan from the parent department, the Foreign and Commonwealth Office, under the then foreign minister, Dominic Raab.

Headlines in the press report that this could be the end of the British Council; the CEO has said that it could be gone in a decade if the government doesn’t step in to support it. He reported to staff that there will be budget cuts of up to 40% (£250 million); the council’s presence will end in up to 41 countries and there will be huge job cuts. PCS members who worked hard to turn the fortunes of the British Council around after Covid will be hit by huge job cuts.

We believe that the new government shouldn’t carry on like its predecessor, and should step in and save the British Council. Its work is in jeopardy, such as the millions of pounds generated in economic activity, the UK’s cultural influence, diplomacy, tourism and international student recruitment.

The loan must be written off so that the BC can get back onto a level footing financially. It generates 85% of its income and was solvent and thriving before Covid. There is no reason why, if the loan and interest payments were removed, the British Council couldn’t get back to where it was.

Senior management must be upfront with PCS about any other financial issues that need addressing such as the £1 million that went to finance operations in China but is not accounted for.  Our members should not pay the price with their jobs and pay for the current crisis.

We are demanding urgent talks with senior leaders at the British Council and that the government writes off the loan and gives an immediate injection of funds to save current operations, locations, jobs and ensure staff get a decent pay rise.