British Council

Baroness D'Souza Excerpts

Tuesday 9th June 2026 Lords Chamber

[Lord Lemos (Lab)]

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.

[Baroness D'Souza (CB)]

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.

[Lord Lemos (Lab)]

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.