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£197M Loan Threatens British Council's Future
17 Jun
Summary
- Agency faces closure in 11 countries due to a large government loan.
- Operations to be reduced in 15 countries, with significant job losses expected.
- Profitability is not anticipated until the 2029-30 fiscal year.
The British Council is confronting severe financial challenges, potentially leading to operations closing in 11 countries as part of a turnaround plan. The agency is struggling to repay a £197 million loan from the Foreign, Commonwealth and Development Office (FCDO), originally secured during the Covid-19 pandemic.
This loan, which has accumulated significant interest, is due for repayment in September 2027. The British Council has incurred substantial net losses of £184 million since the pandemic and is not projected to achieve profitability until the 2029-30 fiscal year.
As a result, the agency plans to reduce its global workforce by approximately 15%, affecting around 1,180 employees by 2029-30, in addition to 2,110 jobs already lost. Operations will be pared back in 15 other countries.
Discussions between the FCDO and the British Council are in the final stages to agree on a repayment schedule, ideally over 15 years. Staff cuts and asset sales have prompted recent protests and votes of no confidence from employees across Europe.
