British Council

John Baron Excerpts

Tuesday 8th June 2021 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con) [V]]

(Urgent Question): To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, if he will make a statement on British Council closures.

[The Minister for Asia (Nigel Adams)]

The British Council is a crucial part of the UK’s presence overseas and a key soft power asset. It works in more than 100 countries to promote UK education, arts and culture, and the English language. The Government remain committed to the British Council. As the integrated review made clear, we value the influence of the British Council. We agreed a 2021-22 spending review settlement totalling £189 million, which is a 26% increase in funding from 2020-21. The British Council has not been cut. Although we have had to make difficult decisions to cut in other areas, we have increased the money we are providing to the British Council. Not only have we increased funding; we have provided a rescue package during the covid-19 pandemic. This includes a loan facility of up to £145 million, with a further £100 million loan being finalised to support restructuring. We have also provided a letter of comfort to ensure that the council can meet its financial obligations.

We found this funding for the council in the context of an extremely challenging financial environment. As a result of the pandemic, the UK is facing the worst economic contraction in over 300 years and a budget deficit of close to £400 billion. This package is necessarily accompanied by changes to the council’s governance essential to modernise the council. These include measures to update the British Council’s charitable objects, to focus the council on its core pillars, to streamline its governance structures and to agree new key performance indicators and targets to monitor council performance in key areas. The Foreign, Commonwealth and Development Office and British Council officials have worked together to ensure that the council will align even more closely with the Government’s strategic priorities and can focus on doing what it does best.

Having worked closely with the British Council, we are reviewing physical council presence in-country as part of this modernisation process. These changes will be minimal, but it is a strategic mistake to judge the impact of the council in a digital age solely by the physical office in-country. Rather, it should be judged by its operational presence, by the digital services we are investing in and which have expanded rapidly as a result of covid, and by its ability to operate through regional hubs and third parties. The covid crisis has changed the way we all have to operate. We have also implemented a new evaluation mechanism, so that when Ministers travel, they can assess the value for money and the impact provided by the British Council on soft power. This is a strong rescue and reform package. The council will also shortly have a new chief executive officer, so it will have strong leadership and a governance structure to make it viable and to reinforce its role as a force for good.

[Mr Baron]

Thank you, Mr Speaker, for granting this urgent question. I also thank colleagues from all parties who are supporting our campaign and who signed the letter to the Prime Minister, and I thank the Minister for responding to the urgent question. Speaking as chair of the British Council all-party parliamentary group, I know that our own dealings with the Government and the letter published between the FCDO and the Foreign Affairs Committee confirm that office closures are about to take place overseas. This is about to be announced by the Government. The number varies from five to 20, but even five would represent the largest set of closures in the British Council’s history, and all for the sake of a £10 million shortfall in funding.

The Minister is right when he says that funding has been supplied to the British Council. We all know that the British Council does an excellent job, and I will not waste colleagues’ time by extolling its virtues. It is a key reason that the UK is considered a soft power superpower. Its high-quality, dedicated staff do an excellent job in promoting British culture, education and the English language overseas, facilitating cultural exchanges and building trust between other countries and the UK. In any normal year, it derives only 15% of its funding from the Government because of its commercial activities, but those commercial activities have been savaged by the pandemic. The Government have stepped forward, but their funding is still £10 million short of what the British Council needs to maintain its international network —its footprint of offices overseas—and its programming. The Government have gone so far, but they are falling at the final fence.

The Minister may say that the British Council needs to move into the technological age—he talks of a digital age—but there can be no substitute for a presence on the ground. The litmus test when it comes to the site closures is not only the Government’s talk of hub and spoke arrangements in certain regions; it is whether the country directors themselves are in situ, and country directors are going to be made redundant.

Let us remember that these closures are happening only because of the £10 million in cuts. They are not of the British Council’s choosing, so talk by Ministers that such decisions are for the British Council rings somewhat hollow. There has been strong ministerial involvement in these decisions, as confirmed by the letter to me from the Prime Minister, and it is Ministers who have instigated these cuts.

Very briefly, the closures are wrong because they are not in keeping with the concept of global Britain—the Defence Secretary has said that there is not enough British Council in the world—but they are also wrong strategically. It is a bad decision—

[Mr Speaker]

Order. We have to go to the Minister. I warned the hon. Gentleman that he had two minutes, and he has now taken three minutes-plus.