British Council

Layla Moran Excerpts

Wednesday 8th September 2021 Westminster Hall

[Wendy Chamberlain (North East Fife) (LD)]

I beg to move,

That this House has considered British Council closures.

It is a pleasure to serve under your chairmanship, Ms Rees. The British Council is the oldest and, for a long time, one of the most important cultural institutions in the world. It has had and continues to have enormous influence. I am sure the Minister knows this, and I do not want to use my time to give him a history lesson. However, we are having this debate because the Foreign, Commonwealth and Development Office seems to have forgotten about the British Council’s value with its refusal to provide financial support, so I will briefly remind him of the British Council’s initial purpose.

Founded in 1934, the British Council was created in response to a changing global stage: the United Kingdom was losing its traditional forms of influence, extreme ideologies were on the rise around the world and there was a global economic crisis. Those problems may not sound unfamiliar to the Minister and others here today as he and his Cabinet colleagues seek to re-establish the UK as a global power outside the EU, respond to extreme ideologies at home and abroad, as we have devastatingly seen over the last few weeks, and tackle the economic and social implications of the pandemic and the climate crisis. Clearly, the British Council remains as relevant today as it has ever been. If the Minister disagrees, I will be interested in hearing him explain that later.

This Government like to talk about us being a global Britain. In fact, the integrated review of security, defence, development and foreign policy earlier this year was named “Global Britain in a Competitive Age”. In the review, we were told the UK would become one of the most influential countries in the world, and a key aspect of this is our role as a soft superpower. The review explicitly highlighted the important work of none other than the British Council, noting that it

“operates in over 100 countries”.

The problem is that the British Council does not. It just cannot. Why? Because, frankly, the Government have prevented it from doing so.

Like many organisations, the British Council has suffered during the pandemic as its commercial operations, which usually provide most of its income, have been severely hit. As of July, teaching revenues were back to only about 50% of pre-pandemic levels, representing a loss of hundreds of millions of pounds over the course of the year. It is predicted that income from commercial operations will not be back to pre-pandemic levels until 2023. That is absolutely devastating.

In a usual year, the British Council can provide an income of several million pounds more than it needs to run its commercial activities, and that surplus is effectively used to subsidise its other work, which is otherwise funded by Government grants. Have the Government tried to help? Yes and no. An immediate shortfall in funding was met through an additional non-official development assistance grant of £26 million, which was very welcome. What was less welcome for the British Council was that most of the additional grant was counterbalanced by a cut in ODA grant funds of £80 million. It is quite literally giving with one hand and taking away with the other.

[Layla Moran (Oxford West and Abingdon) (LD)]

I congratulate my hon. Friend on securing this important debate. Would she agree that, especially since the broken manifesto pledge on 0.7%, we are beginning to see that this Government’s actions do not match their words? When the Government say they want to be a world superpower, this example of the British Council funding is yet another proof point that what they say and mean is not what they do?

[Wendy Chamberlain]

I thank my hon. Friend for her intervention. Yes, I agree. I would argue that the integrated review was published at the start of the year and that work was ongoing, but the decision on the Department for International Development was taken before that review was published. That, alongside the cuts to the British Council, demonstrates that the Government are not aligned with the view of global Britain seen by my hon Friend, myself and others.

A series of loans has also been agreed, but on commercial terms, requiring the British Council to submit business plans to be agreed by the FCDO. Ordinarily, as we know, the British Council is incredibly economically successful, but the reality is that the loans have been needed to fill a hole made by the pandemic. Business operations are not currently normal. None the less, business plans were submitted and in effect the loans became contingent on cost-saving measures that needed to be put in place. What do cost savings and less income mean? That does not promise a strong British Council presence in 100 countries. It is not a bolstering of our soft power presence. It means cuts to services and staffing—I met some staff online earlier this week—and cuts to Britain’s presence around the world.

Already we have seen office closures, with more to follow in coming years. Closures span the world from Belgium to the United States and from Australia to South Sudan. They include all the Five Eyes countries. In other countries, cuts mean there will be no staff, with operations happening remotely.