Public Accounts Committee Urges Write-Off of British Council Debt

The House of Commons Public Accounts Committee has called on the British government to write off a 197 million pound loan owed by the British Council. The committee suggested the debt be converted into a grant, arguing that the council provides approximately 1 billion pounds in annual soft power value to the United Kingdom.

The loan was originally 60 million pounds, issued by the Foreign, Commonwealth and Development Office during the Covid-19 pandemic, but grew significantly due to commercial terms. Despite selling assets and reducing its headcount by nearly half since 2020, the British Council does not expect to reach an operating surplus until 2029–30.

The committee criticized the Foreign, Commonwealth and Development Office for lacking a positive vision and maintaining a relationship with the council characterized by a lack of trust. This financial instability has coincided with labor unrest, as staff in Europe have staged strikes against budget cuts and planned closures across nine countries.