economy
British Council faces more job cuts to help pay off £197m loan
National Audit Office says agency proposes closing operations in 11 countries as part of turnaround plan
TL;DR
- The British Council faces potential further job cuts and closure of operations in 11 countries.
- The agency is struggling to repay a £197 million government loan taken out during the Covid-19 pandemic.
- The loan repayment is due in September 2027, and the agency is not expected to make a profit until 2029-30.
- A proposed turnaround plan includes a further 15% staff reduction and closure of operations in 11 countries.
- Recent staff protests have occurred in Europe due to job cuts and asset sales.
- The British Council's proposal to pay off the loan with its art collection was rejected.
- The FCDO and Treasury rejected writing off the debt due to the UK Subsidy Control Act 2022.
- The NAO head emphasized the need for parliamentary clarity on the agency's financial future.
- The chair of the public accounts committee described the agency's financial position as 'deeply concerning and untenable'.