Future of Soft Power

Khalid Mahmood Excerpts

Wednesday 16th March 2022 Westminster Hall

[Mr Baron]

I completely agree with the hon. Gentleman. We have to do more to realise that democracy needs defending. We have to step up to the plate—not just this country, but the west generally—and commit sufficient resources, to ensure that we can talk softly, which we should always do first, but carry a big stick, because the big stick reinforces the weight of the soft diplomacy. We live in a hard world, but people will listen if they think we have assets that could be committed. I am an ex-soldier. War should always be the measure of last resort, but we need to talk and have the assets behind us to reinforce the weight of those talks.

This country should be proud. We have the BBC World Service, the British Council, our music industry, our culture, our values and the rule of law. There is little doubt—in fact, it has been shown through various measurements—that the UK is the world’s soft-power superpower, and we should be very proud of that.

During the invasion of Ukraine, the number of listeners to the BBC World Service in Russia went up three or four times. Listeners to the Ukrainian service went up to 5 million. Yet we are still debating whether the BBC World Service and BBC Monitoring budgets should be ringfenced. There is a question mark over their funding.

The British Council last year was in touch with more than 750 million people worldwide for education, arts and the English language. That is a phenomenal achievement. On the UK music industry, I will share with colleagues that I am not very good at contemporary music, but I am reliably informed that three of the top 10 artists came from these shores. That is punching above our weight and helps to create the positive view of this country—there is a lot to be positive about—but it also reaches out and makes contact with people globally.

There is, however, growing competition for influence. We cannot stand still. Individual states, many of them not democratic, are looking to invest and are investing to enhance their soft power around the world. Cultural institutes such as the British Council are an effective way of doing so, and one which truly global nations all employ. As chair of the British Council all-party parliamentary group, I will confine my remarks to that wonderful organisation.

I remind the Minister that other cultural institutes of other countries receive far greater amounts and proportions of public funding, between 40% to 50% of their total income. Whether it is the Goethe-Institut, or Confucius Institutes, or whatever, they get around half their income from the state. The amount is only around 15% from the British Government, because the British Government have said that the British Council must rely on its own commercial activities to help fund its endeavours. That is fine, except when those revenues fall through the floor in a pandemic year. It is, therefore, with regret for many of us—across the Floor in this House, but also in the other place—that the Government did not fully compensate for the loss of commercial income by the British Council as a result of the pandemic.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

I thank the hon. Gentleman for taking an intervention, and for his fantastic work for the British Council. Its work is crucial—he is highlighting the loss of revenue—but we often forget about the revenues it generates through its great work and the number of people it introduces to British education and infrastructure. People who go through the British education system become allies of the United Kingdom, and continue that in their businesses and the posts that they hold, including Chevening scholars. The British Council does a tremendous amount of work that is rarely recognised, particularly in terms of funding.

[Mr Baron]

I completely concur with the hon. Gentleman’s comments. Sometimes we talk about figures and percentages too much in this place. We need to step back and realise that the British Council does an awful lot of good work that reaches into people’s lives on a global basis.

[Mr Baron]

I completely agree. I have been remiss in not thanking APPG members for being here today and contributing to the debate.

I am conscious that others want to contribute. I know we have half an hour, but I do not want to speak for the full 15 minutes. I want to address the issue of funding with the Minister, because funding the British Council was one reason I applied for this debate.

Let me be clear: the Government were generous in increasing the budget to the British Council during the pandemic, but the problem is that it was still £10 million short of fully compensating the British Council when it came to its commercial activities. For those who do not know—I do not think anyone here does not—its commercial activities essentially centre on teaching English in the far east.

Being £10 million short, it had to close 20 country operations, which is an ongoing process. Those countries were Australia, Canada, New Zealand, the USA, Slovakia, Slovenia, Malta, Switzerland, Belgium, Croatia, Montenegro, Bosnia and Herzegovina, Kosovo, North Macedonia, Afghanistan, Chile, Namibia, Uruguay, South Sudan and Sierra Leone. That is a long list of countries, including the Five Eyes and others, where we should not be closing the British Council’s soft power operations.

The British Council wants to be ambitious about what it delivers for the UK, in partnership with the Foreign, Commonwealth and Development Office, when the world reopens for business and manages the shock of Russian aggression in eastern Europe. However, looking at the CSR—the comprehensive spending review—budget going forward, having the 20 closures in train, we were delighted to see a 21% increase in funding for the FCDO over a three-year period. The Minister will recognise that figure. Yet, we now find that further cuts are being proposed to the British Council, below the £171 million of annual public funding that the council needs to carry on its sterling work across the global network, when it put its bid in to the FCDO.

In other words, despite the FCDO receiving a 21% funding increase over the three-year period, the British Council was going to be cut. Those negotiations are ongoing. I implore the Minister to have a look at the figures and to try and ensure that there are no further country closures, because the British Council is already having to deal with 20 from the previous cuts. Any more would hardly fit with the ambition and concept of global Britain. We need to show solidarity with our friends and allies, not only to counter the rising threat of autocracy around the world, but to secure much needed trade deals for the UK. We stand less chance of doing that if we are cutting our soft power capabilities in key countries, many of them strong allies of the UK.

In conclusion, my questions to the Minister are threefold. First, will she confirm when the British Council will receive notice of its full allocation for the spending review period? I ask that because the organisation cannot be expected to make any plans given the uncertainty created by this lack of notice; it needs to know sooner rather than later.

Secondly, will the Government confirm that the current negotiations will not result in a further cut, itself resulting in further country closures? I hope the Government get it, in the sense of understanding that we need to strengthen the UK’s soft power capability during this moment of global stability.

Finally, will the Government stop touting the figure of a 26% funding increase? I have heard it bandied about so often, but it is misleading because it is comparing a pandemic year with a non-pandemic year. It is not comparing like for like. Despite a 26% increase in funding, the figure was still £10 million short of fully compensating the British Council for its loss of commercial revenue during the pandemic year, which is why it had to close 20 country operations. Hiding behind percentage increases does not mask the truth that we withdrew from the world stage, because there was a £10 million shortfall that resulted in those 20 county closures. I look forward to hearing the Minister’s response.

[Mr Mahmood]

rose—

[Christina Rees (in the Chair)]

Order. This being a 30-minute debate, we do not usually take contributions from other Members unless they have permission from the Member in charge and the Minister.

--- Later in debate ---

[Mr Mahmood]

Very briefly, there is never a reason to speak after the chairman of the APPG has spoken, because he is always so eloquent, particularly in describing the needs of the British Council, and some great work has been done for a long time in support of it.

The hon. Member talked with passion about the British Council, and I agree with him, because as I said in my intervention, it is not just a financial organ. I would caution the Government against knowing the cost of everything and the value of nothing, because value is what the British Council has provided. In Russia, for instance, it has provided a huge amount of access to education. In Commonwealth countries in particular, it provides a huge amount of access for people who would not otherwise have access to the type of education that those countries need to become better democracies and to build better communities and societies that we want to engage with. That is the value of the British Council: supporting people to do that and to go on to higher and further education. But on top of that, when people enter into education their mindsets change, away from other doctrines and towards democracy and valuing human life. That is one of the really important things that the British Council does.

The British Council also does a huge amount to support our trade, because when we have people understanding English and coming here to get their education at our universities, they build up links that they want to retain when they go back, whether they are in private or Government jobs, and the amount of connection that creates is of huge value. The £10 million shortfall over the covid period was a horrendous loss for those countries and their people’s education. It has had a huge effect on those people, who we want to be able to support.

I will be quick, Ms Rees, because I know that time is limited. We have to understand the value of this work. This is why we are all so passionate about it. We have to understand that it is not just about what we put in to keep those offices open; it is also about the value we get in return, because the soft power that the hon. Member for Basildon and Billericay (Mr Baron) spoke about is hugely important.

[Karen Bradley]

I am grateful to the hon. Gentleman, who indulges me by allowing me to intervene a second time. Does he agree that it would be wonderful if there was some way of assessing the value of institutions such as the British Council, which is so much more than the money that goes in? If only the Treasury had a way of assessing the overall value to the United Kingdom, rather than just looking at the pounds going in, we would appreciate those institutions all the more.

[Mr Mahmood]

I totally agree with the right hon. Lady, who makes a valid point. That sort of assessment could be made if we looked at the number of people who come to our universities to be educated and who then keep in contact when they go back home, and also through our embassies and our imports.

The hon. Member for Basildon and Billericay made an important point about Brexit and having new deals and contracts with different countries. Once we have that heritage, people want to talk to us. Once we have that connection, people want to come back and talk to us, and to make sure that they retain that connection. That is really important for us. Certainly in the Maghreb countries, there are people who are moving away from France and want more English classes in order to understand English, so that is another issue we should look at. That would mean an incalculable amount of finance coming back into the country, so we need to look at that.

I will reinforce the case made by the hon. Member for Basildon and Billericay by urging the Minister to ensure that we get a clear indication of the budgets that will be set, bearing in mind the losses there have been, and hopefully those will now be increased. Such an investment would be well made not just for the British Council but, most importantly, for us as the United Kingdom.