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To ask His Majesty's Government what consideration they have given to forgiving the Covid loan issued to the British Council in July 2020.
To ask His Majesty's Government what consideration they have given to forgiving the Covid loan issued to the British Council in July 2020.
The Foreign, Commonwealth and Development Office (FCDO) remains committed to recovering the loan when the British Council's finances allow, consistent with the requirements of the UK's subsidy control regime. We continue to work closely with the British Council and His Majesty's Treasury on the long-term restructuring of the loan and will update Parliament formally in due course. I also refer the Noble Lord to the evidence provided to the Public Accounts Committee on 2 July 2026 by the interim Permanent Under-Secretary, where these issues were discussed in greater depth.
To ask the Secretary of State for Education, whether the British Council has a definition of a woman for initiatives supporting women under Erasmus+.
To ask the Secretary of State for Education, whether the British Council has a definition of a woman for initiatives supporting women under Erasmus+.
To ask His Majesty's Government, further to the Written Answer from Baroness Chapman of Darlington on 18 June (HL1080), what steps they are taking following the National Audit Office’s report Investigation into the financial sustainability of the British Council, published on 13 June.
To ask His Majesty's Government, further to the Written Answer from Baroness Chapman of Darlington on 18 June (HL1080), what steps they are taking following the National Audit Office’s report Investigation into the financial sustainability of the British Council, published on 13 June.
I refer the Noble Lord to the letter sent to the Foreign Affairs Committee by the Minister for Multilateral and Human Rights on Tuesday 30 June concerning the financial position of the British Council.
To ask the Secretary of State for Education, whether her Department has had discussions with the British Council on supporting the recruitment and retention of international teachers, including through improvements to visa sponsorship, induction and professional development.
To ask the Secretary of State for Education, whether her Department has had discussions with the British Council on supporting the recruitment and retention of international teachers, including through improvements to visa sponsorship, induction and professional development.
Recruiting and retaining expert teachers is critical to the government’s mission to break down the barriers to opportunity for every child. While our focus is on increasing the number of high-quality domestic teachers, international teachers make a valuable contribution to the teacher workforce in many subjects, including modern foreign languages. This is reflected in visa arrangements, where international teachers can qualify for a skilled worker visa if they are paid in line with teachers’ national pay scales, rather than the higher salary threshold which applies to most occupations.
To support schools in recruiting the teachers they need, the department regularly engages with a wide range of stakeholders, including the Home Office and the British Council.
Guidance on recruiting and retaining international teachers is available at: https://www.gov.uk/guidance/recruit-teachers-from-overseas.
To ask the Secretary of State for Education, whether the British Council has a definition of a woman for initiatives supporting women under Erasmus+.
To ask the Secretary of State for Education, whether the British Council has a definition of a woman for initiatives supporting women under Erasmus+.
This is a matter for the British Council.
To ask His Majesty's Government what action they are taking to secure the long-term future of the British Council.
To ask His Majesty's Government what action they are taking to secure the long-term future of the British Council.
I refer the Noble Lord to my statement to the House on 26 March (HLWS1489).
To ask His Majesty's Government what steps they intend to take to ensure the British Council Collection will remain the property of the British Council, and that no part of it will be sold off.
To ask His Majesty's Government what steps they intend to take to ensure the British Council Collection will remain the property of the British Council, and that no part of it will be sold off.
On the issue of the British Council's overseas presence, I refer the Noble Lord to the answer provided on 3 June in response to Question HL318, but in general, decisions on specific assets or property owned by the British Council are for them to take as they consider appropriate. On the wider issue of the British Council's financial position, I refer the Noble Lord to my statement to the House on 26 March (HLWS1489).
To ask His Majesty's Government what soft power significance they attach to the real estate owned by the British Council across the world; and what steps they are taking to ensure that such property is not sold off.
To ask His Majesty's Government what soft power significance they attach to the real estate owned by the British Council across the world; and what steps they are taking to ensure that such property is not sold off.
On the issue of the British Council's overseas presence, I refer the Noble Lord to the answer provided on 3 June in response to Question HL318, but in general, decisions on specific assets or property owned by the British Council are for them to take as they consider appropriate. On the wider issue of the British Council's financial position, I refer the Noble Lord to my statement to the House on 26 March (HLWS1489).
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what progress her Department has made on negotiations on the British Council loan; and whether the British Council plans to close any offices.
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what progress her Department has made on negotiations on the British Council loan; and whether the British Council plans to close any offices.
I refer the Hon Member to the statement I made to the House on 26 March (HWCS1470).
As my noble friend knows, the loan was made on commercial terms to ensure compliance with the UK Subsidy Control Act, which means that interest rates are set at market rates. For the last five years, the British Council has made losses of around
£50 million per year, greatly in excess of the loan repayments. The priority, therefore, is for the British Council to address these ongoing commercial losses, return to surplus and implement its financial turnaround plan, to get itself back on to a long-term financially sustainable footing. In the meantime, the British Council continues to do excellent and important work, funded by grant in aid.
As my noble friend knows, the loan was made on commercial terms to ensure compliance with the UK Subsidy Control Act, which means that interest rates are set at market rates. For the last five years, the British Council has made losses of around
£50 million per year, greatly in excess of the loan repayments. The priority, therefore, is for the British Council to address these ongoing commercial losses, return to surplus and implement its financial turnaround plan, to get itself back on to a long-term financially sustainable footing. In the meantime, the British Council continues to do excellent and important work, funded by grant in aid.
I thank my noble friend for that Answer. I have great affection and support for the British Council, having been a parliamentary ambassador for it for many years, and having met many incoming delegations over the years. What I did not hear in my noble friend’s Answer was a resolution of the punitive £200 million Covid-era solvency and restructuring loan handed to the British Council by the then Conservative Government. The costs are eye-watering: £15 million in interest every year before even making repayments. Can my noble friend tell me whether this is going to be resolved?
My Lords, it is excellent that the British Council has been appointed as the UK’s national agency for the Erasmus programme. As we seek a closer relationship with the EU, how can we make sure that the British Council can play a full part in this, unhampered by this huge Covid debt?
My Lords, it is excellent that the British Council has been appointed as the UK’s national agency for the Erasmus programme. As we seek a closer relationship with the EU, how can we make sure that the British Council can play a full part in this, unhampered by this huge Covid debt?
The noble Baroness is right: the Erasmus programme is an important part of the work the Government are doing with Europe, and the British Council has a big role to play in that. That is not one of the British Council’s commercial activities, as I understand it—but I will correct that if I have got that wrong—and therefore will continue and will not be affected by the discussions about the loan.
The noble Baroness is right: the Erasmus programme is an important part of the work the Government are doing with Europe, and the British Council has a big role to play in that. That is not one of the British Council’s commercial activities, as I understand it—but I will correct that if I have got that wrong—and therefore will continue and will not be affected by the discussions about the loan.
The noble Baroness is right: the Erasmus programme is an important part of the work the Government are doing with Europe, and the British Council has a big role to play in that. That is not one of the British Council’s commercial activities, as I understand it—but I will correct that if I have got that wrong—and therefore will continue and will not be affected by the discussions about the loan.
My Lords, it is excellent that the British Council has been appointed as the UK’s national agency for the Erasmus programme. As we seek a closer relationship with the EU, how can we make sure that the British Council can play a full part in this, unhampered by this huge Covid debt?
My Lords, the £15 million interest, which is paid annually by the British Council because of the £200 million Covid debt, is bringing the British Council to its knees. Would the Government consider some creative solution to this debt—for example, by granting the British Council a holiday or delaying the payment of that £15 million interest debt until its financial situation becomes a bit better? As we know, it is struggling, and it is doing everything it can to restructure, which includes the letting go of a huge number of staff around the world. This is very much to the detriment of the long-term future of the British Council.
My Lords, the £15 million interest, which is paid annually by the British Council because of the £200 million Covid debt, is bringing the British Council to its knees. Would the Government consider some creative solution to this debt—for example, by granting the British Council a holiday or delaying the payment of that £15 million interest debt until its financial situation becomes a bit better? As we know, it is struggling, and it is doing everything it can to restructure, which includes the letting go of a huge number of staff around the world. This is very much to the detriment of the long-term future of the British Council.
As I said, the loan must comply with the UK Subsidy Control Act, but the Government have already made some concessions by extending it to 2027. The British Council submitted its turnaround plan in August 2025, and it has been independently reviewed. It is obviously highly commercially sensitive, and therefore I will not give a running commentary. However, as I am sure the noble Baroness will be pleased to hear, we hope that the FCDO will agree to restructuring the loan in the coming weeks.
As I said, the loan must comply with the UK Subsidy Control Act, but the Government have already made some concessions by extending it to 2027. The British Council submitted its turnaround plan in August 2025, and it has been independently reviewed. It is obviously highly commercially sensitive, and therefore I will not give a running commentary. However, as I am sure the noble Baroness will be pleased to hear, we hope that the FCDO will agree to restructuring the loan in the coming weeks.
As I said, the loan must comply with the UK Subsidy Control Act, but the Government have already made some concessions by extending it to 2027. The British Council submitted its turnaround plan in August 2025, and it has been independently reviewed. It is obviously highly commercially sensitive, and therefore I will not give a running commentary. However, as I am sure the noble Baroness will be pleased to hear, we hope that the FCDO will agree to restructuring the loan in the coming weeks.
My Lords, the £15 million interest, which is paid annually by the British Council because of the £200 million Covid debt, is bringing the British Council to its knees. Would the Government consider some creative solution to this debt—for example, by granting the British Council a holiday or delaying the payment of that £15 million interest debt until its financial situation becomes a bit better? As we know, it is struggling, and it is doing everything it can to restructure, which includes the letting go of a huge number of staff around the world. This is very much to the detriment of the long-term future of the British Council.