Future of British Council uncertain as institution still owes £197m of Covid loan

• The British Council has not repaid any of a £197 million government loan, six years after the initial funding, and continues to lose money.
• The National Audit Office (NAO) found the cultural body only began making interest payments on the loan in April 2024, with the capital remaining untouched.
• The British Council does not anticipate returning to profit until 2029/30 and has offered its art collection, including works by LS Lowry and Francis Bacon, as repayment, which the Government rejected.
• A proposed plan, awaiting ministerial approval, could see the British Council make around a quarter of its staff redundant and close offices in 11 countries to address its financial difficulties.
• The loan, initially due in March 2024, has been extended to September 2027, with the Foreign Office and British Council negotiating a long-term solution for repayment.

IN FULL

British Council in ‘precarious financial situation’ after failing to repay £197m Covid loan