Conclusion 8

The British Council told us that it is the combination of commercial income and grant funding that makes it effective at what it does, and that an element of tension between the two sides of the organisation is something that must be accepted.18 The COVID-19 pandemic heavily disrupted the British Council’s commercial business, leaving it reliant on loan support from the FCDO. It has had to take difficult decisions over how to restructure its commercial functions in order for those, and for its grant-in-aid work, to continue.19 The British Council also told us that, having already reduced its workforce by 34% since March 2020,20 it now plans to make further headcount reductions leaving it 46% smaller than its pre-pandemic size.21 We understand that it will also close operations in nine countries and continue to sell assets around the world in order to meet the goals of its turnaround plan and return to financial sustainability.22 11 Q 31 12 Q 4 13 British Council, Soft power and cultural relations institutions in a time of crisis, 29 January 2021, page 25 14 Q 42 15 Q 63 16 C&AG’s Report, para 1.11 17 Q 42 18 Q 6 19 C&AG’s Report, Figure 13 20 Q 26 21 Q 43 22 Letter from Minister Elmore to the Chair of the Foreign Affairs Committee, 30 June 2026 10