Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what assessment he has made of the potential merits of reducing the interest repayments on the loan given to the British Council in response to reduced commercial revenues during the COVID-19 pandemic.

The previous Government made available up to £200 million in loans during the Covid-19 pandemic to ensure the British Council remained solvent, to support restructuring, and to help the British Council return to surplus. The loan was made on commercial terms to ensure compliance with the UK subsidy control regime, and therefore interest rates are set at market rates.

The Foreign, Commonwealth and Development Office is supporting the British Council to deliver a financial turnaround plan to ensure the British Council's finances are returned to a stable footing.