Conclusion 17

The British Council largely delivered the planned cost savings and restructuring but failed to achieve the expected growth in commercial income. The British Council achieved £179 million of efficiency savings against a target of £185 million and significantly reduced staffing levels.40 However, revenue growth fell short of expectations and the British Council continued to make losses. The British Council accepts that the plan had been too ambitious, particularly on the recovery of teaching and exams income. The National Audit Office reported that changes in demand for English language teaching and exams, together with increased competition in the sector affected the performance of the British Council’s commercial business. A 2019 review of the British Council also noted that the British Council was falling behind its competitors in digital teaching services.41