British Council

Chris Stephens Excerpts

Wednesday 8th September 2021 Westminster Hall

[Wendy Chamberlain]

I thank the hon. Member for his contribution and for his work with the all-party groups, which are important as they are cross-party. Criticisms of the Government’s British Council closures come not only from the Opposition Benches, but from across Parliament. In relation to the Balkans, the British Council is a part of how we demonstrate to our European friends and neighbours that we want to continue in a close partnership despite having left the EU, which I and many other Members disagree with.

Devastating cuts have already been made. The choices have been made by the Minister and his staff. The cuts are the result of cutting ODA spending, a policy hated across the country that my hon. Friend the Member for Oxford West and Abingdon (Layla Moran) referred to, and hated across this House, as I mentioned, including in the Minister’s own party. Perhaps, this is the inevitable outcome of merging the Department for International Development and the Foreign and Commonwealth Office, which is something we warned about last year. That was also done in the name of cost savings, but it is as yet unclear whether any savings have been made from that decision. Perhaps the Minister will let us know when information on the merger will be made available.

I understand there is also an expectation at the Treasury that all Departments will have to reduce their spending by 5% at the next review. The British Council has already gone through so much hardship, has already had to agree to a reduction in spending of more than £185 million over the next five years, and is already looking at making 20% of its staff redundant here in the UK and across the world. Further cuts will put pressure on the future of the British Council itself. Will the Minister provide reassurance that he will fight to maintain his Department’s budget, and will he consider ring-fencing the current level of grant funding that the British Council receives?

Our soft power is rooted in who we are as a country. It is central to our international identity, and its strength cannot be taken for granted. Those are not my words, but those of the Government’s own integrated review, published just months ago. It is absolutely remarkable that the Government pay lip service to the importance of the British Council while simultaneously undermining it. I urge the Minister to address that in his speech.

[Chris Stephens (Glasgow South West) (SNP)]

I congratulate the hon. Member on securing this debate. She was in a meeting online this week with me and members of the Public and Commercial Services Union. I should refer Members to my entry in the Register of Members’ Financial Interests. Is she as concerned as I am that the business plan is going forward and the whole redundancy exercise is being done in secret? We really need a bit more disclosure, and we need more parliamentary scrutiny as to how the restructuring is being carried out.

[Wendy Chamberlain]

I thank the hon. Member for his intervention. I was pleased to join him earlier this week. One thing that struck me from the meeting was the longevity of some of the staff there, how long they had worked for the British Council, their passion and dedication and how the current actions and what was happening were undermining how they felt about their organisation. I agree that it is very important that we have a degree of transparency, particularly for a non-departmental public body such as the British Council.

Soft power is important. My colleagues and I see the benefits of the UK’s being trusted and respected around the world. Our education system is outstanding, and we want international students to come and benefit from it. I want students from around the world to come to the University of St Andrews in my North East Fife constituency. The British Council helps to support that aim, engaging with the Turing and Erasmus programmes, science, technology, engineering and mathematics scholarships, technical placements and assistance with applications.

Those students bring countless benefits to us at a local level, not only to our local economic circumstances, but with their experiences and knowledge. Speaking as a member of the Scottish Affairs Committee, we should remember the importance that international students have in Scotland in particular, which we picked up in our inquiry. Their fees are no doubt part of that.

Tourism contributes £106 billion to the British economy and supports 2.6 million jobs. We cannot recover without it, particularly in North East Fife, so we need to encourage visitors to our shores. Despite current temperatures, I am yet to meet a tourist who says they came to the UK for the good weather. People come for our history and to experience our culture. They go to Stratford to learn about Shakespeare, they go to the pub just about anywhere, they want to experience our vibrant arts and theatres and, at least in North East Fife, they definitely want to have a round of golf. Of course, all those good things exist independently of the British Council, but its presence around the world, teaching English, sharing our culture and demonstrating that we are an open and welcoming nation, plays a significant role.

We also need trade deals. We need to export our goods and services, be it Scotch whisky or cutting-edge science, technology, engineering and maths knowledge, but what country is going to make a trade deal with a country it does not trust? What does it say to the countries we want to work and trade with if we turn our backs on them and withdraw our institutional presence? What does it say about our commitment to tackling climate change if, as reported today, this Government are considering doing away with agreements around climate change when they look at trade deals, such as that with Australia?

The biggest challenges we face today do not affect us alone and cannot be solved by us alone. We face a climate crisis; we face a growth in extreme ideologies around the world. The world is a less safe, less stable and less prosperous place, and retreating solves nothing. For better or worse, we have already retreated from the European Union—I firmly believe it is for the worse—but we still need to work together to respond to global health crises, to house and support refugees coming from Syria, Afghanistan and other places, to tackle cross-border crime and terrorism, and to make the shifts required to respond to the climate crisis.

--- Later in debate ---

[The Minister for Asia (Nigel Adams)]

I thank the hon. Member for North East Fife (Wendy Chamberlain) for securing this important debate on the British Council’s global presence. I will take my mask off; that would probably help. I am grateful for the interventions of other hon. Members. I am also conscious that I need to give the hon. Lady a couple of minutes, if she would like that, to sum up.

The hon. Lady has already said that the British Council plays an absolutely crucial role as one of the UK’s international organisations for cultural and educational opportunities and cultural relationships. It is an arm’s length body of the Foreign, Commonwealth and Development Office. It has a core mission to promote English-language education, arts and culture across the globe, and it does a fantastic job of that. It delivers key soft-power benefits to the United Kingdom, and it is a crucial part of our overseas presence, operating in over 100 countries. The British Council’s own figures show that, in 2019-20, it reached 983 million people.

We recognise the British Council’s considerable contribution to promoting our influence and values overseas. It is important to acknowledge, however, the devastating impact of the covid pandemic on British Council operations. As the chairman has said a number of times, the organisation went from producing almost £1 billion of revenue to producing virtually zero overnight. It takes a lot to recover from that.

At the peak of the pandemic, over 90% of the British Council’s teaching and exam centres were forced to close. The hon. Lady referred to the fact that we have provided the council with additional financial support in an extremely challenging fiscal climate. We are facing the worst economic contraction in over 300 years and a budget deficit of close to £400 billion. However, to depart slightly from the bonhomie, I politely suggest that the hon. Lady’s remark that we were refusing to provide financial support to the British Council is frankly, on every level, inaccurate. Despite these unprecedented economic circumstances, we have allocated over £600 million to the council since the pandemic hit. The hon. Lady may not be aware of that figure.

[Chris Stephens]

I thank the Minister for giving way. Can he tell us today what the conditions are for that £600 million in terms of loans?

[Nigel Adams]

I can certainly go into some more detail on the financial settlement. It included a 2021-22 spending review settlement, in 2020, that totalled £189 million. That is a 27% increase. Furthermore, £150 million of the settlement is composed of ODA, while the non-ODA allocation of £39 million is triple that of the 2020-21 baseline. In addition to the settlement, we are providing loan support, which the hon. Member for North East Fife referenced. That is up to £245 million and includes a £100 million loan to support restructuring efforts and to rebuild commercial surpluses.

[Chris Stephens]

Will the Minister give way?

[Nigel Adams]

I will come on to the point made by the hon. Member for Glasgow South West (Chris Stephens). The hon. Member for North East Fife suggested that the British Council had to provide a business plan to secure a loan. I am not entirely sure that a business plan requirement is a particularly heinous thing to ask of the British Council. I would be grateful if any hon. Members could point me to a bank or any lender that would provide a loan without at least politely asking what that money would be used for. We worked very closely with the management and board of the British Council to come to this arrangement on the loans. We have worked very hard with them; they have done an incredible amount of work, and I pay tribute to Stevie Spring, the leadership and the interim chief executive.

[Chris Stephens]

I thank the Minister; he is being very generous. There are problems with the restructuring, and the outcome is that some of the industrial relations from the British Council need to be improved. Is the Minister’s Department scrutinising how the British Council is carrying out the restructuring? Would he be prepared to meet me and PCS representatives to hear our concerns?

[Nigel Adams]

I am more than happy to meet the hon. Gentleman or any hon. Member here today to discuss the British Council. We discussed it in the main Chamber quite recently, and I am more than happy to do so again. Members are very welcome to come into the FCDO and meet me and our soft-power team, who work incredibly closely with the British Council. Clearly, changes such as staffing are operational matters for the council itself. We understand that it is working incredibly hard to restore its commercial operations and to maximise its revenues. It is a particularly difficult time.

While we have had to make difficult decisions across all Departments and in other areas, we are increasing the money we are providing to the British Council. Never has there been a clearer endorsement by the Government of the British Council and the important soft-power role it plays. However, the unprecedented impact of the pandemic has forced the Government to take tough but necessary decisions about the British Council’s global presence. It has reinforced the need for the council to do more to adapt to a changing world. As the interim chief executive of the British Council said at the time, the British Council will stop spending grant-in-aid funding in 11 countries and will deliver grant-in-aid programming through offices for a further nine countries.

Let me re-emphasise that decisions on presence were taken only after a thorough assessment alongside the British Council of how the council’s priorities link with the Government’s foreign policy objective, as set out in the IR, as well as how the British Council can achieve the greatest impact.

In the debate in the main Chamber, some said that the British Council can make a meaningful impact only with an office in-country. That, frankly, is incorrect. I said in June that it would be a strategic mistake to judge the impact of the British Council in a digital world by its physical presence. This crisis—the pandemic—has changed the way we all operate, and the British Council has done an excellent job.