British Council faces more job cuts to help pay off £197m loan
Summary
The British Council is planning more staff cuts and closures in some countries to repay a large £197 million government loan taken during the Covid-19 pandemic. The agency has been losing money since the pandemic and is not expected to break even until 2029-30, while working with the government to agree on how to repay the loan.Key Facts
- The British Council owes a £197 million loan from 2020, originally £60 million plus interest, due in 2027.
- Since the pandemic, the British Council has lost £184 million and has paid £42 million in interest so far.
- The agency expects to make no profits until 2029-30.
- Plans include cutting about 15% of staff, around 1,180 jobs, on top of 2,110 layoffs since 2021.
- Operations will shut down in 11 countries and be reduced in 15 others.
- The British Council offered to repay the loan partly by trading artworks, but this was rejected.
- The government has refused to write off the debt due to legal rules (UK Subsidy Control Act 2022).
- The National Audit Office and public accounts committee say a clear, lasting repayment plan is needed soon.
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