Select committee: Public Accounts Committee
Recommendation 6
18th Report - The financial sustainability of the British Council
Published 30 Oct 2026
Public Accounts Committee Financial sustainability of the British Council All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The British Council has cut more than a third of its staff and plans to reduce headcount further, dispose of historical assets and close operations in nine countries, all while attempting to stabilise and grow revenues. The turnaround plan’s expected benefits of £306 million include £172 million to come from restructuring and efficiency projects, with an expected reduction of a further 25% of the organisation’s staff. Since 2020 the British Council has reduced 34% of its staff, and with the turnaround plan headcount cuts will reach 46% of the workforce by 2029–30. Such cuts, however, have not been made at the very top of the organisation. The British Council also faces the closure of nine of its country offices and further asset sales. Stakeholders are concerned at the extent and handling of these cuts, and the value for money of proposed 6 asset sales. Given the turnaround plan’s reliance on growth to reach an operating surplus by 2029–30, such extensive shrinking of the organisation is a large potential risk to achieving that growth. recommendation The British Council should set out what steps it has taken to: a. consult staff on headcount reduction; b. ensure its decisions on staffing secure value for money, including information on which grades have been affected by cuts and how the size of the leadership team has changed; and c. resolve the tension between shrinking the organisation through headcount reductions, asset disposals and country closures while attempting to achieve revenue growth and maintain and increase the British Council’s contribution to UK soft power. 7 1 The British Council’s role and relationship with the FCDO Introduction
From: Public Accounts Committee, 18th Report - The financial sustainability of the British Council (HC 100), 30 October 2026
Government response
Government response awaited: deadline 30 December 2026.