The British Council is facing a serious financial challenge as it tries to deal with a £197 million government loan created from emergency support provided during the COVID-19 pandemic. The National Audit Office says the organisation remains loss-making, has made no capital repayments since April 2024 and is not expected to return to profit until 2029-30.

How the Debt Reached £197 Million

The pandemic disrupted income from English-language teaching, examinations and international operations. The British Council’s total income fell by 28% in 2020-21, leading the Foreign, Commonwealth and Development Office and HM Treasury to provide an initial £60 million loan in July 2020.

The facility has since been amended and extended several times and now stands at £197 million. The British Council paid £42 million in ...