The Public Accounts Committee (PAC) will examine the ongoing impact of the pandemic on the British Council’s finances.
","secondaryDescription":"The British Council promotes the UK’s culture, language and influence around the world. It operates across dozens of countries and reaches millions of people each year. Around 85% of the British Council's income is generated through commercial activities, primarily through the teaching of English and exams. However, the pandemic saw the temporary closure of many of its business operations and since the start of the pandemic it has made net losses of £184million.
\r\nMPs will use this session to question senior officials from the Foreign, Commonwealth and Development Office (FCDO) and the British Council on the financial challenges the Council has faced since the pandemic.
\r\nQuestions are likely to examine the British Council’s ability to repay the current £197 million loan provided by the FCDO. The PAC could also question how much progress has been made in negotiations between the two organisations, and whether a 15-year timeframe for a full repayment of the loan is realistic.
\r\nThe British Council has already delivered significant cost reductions of £179 million and cut its workforce by around 2,000 full-time equivalent staff. Despite this, it has failed to significantly grow its revenue and continues to be make losses. MPs may consider what the future role of the British Council could look like, the possibility of further job cuts and whether current plans to improve its financial situation are overly ambitious.
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