FCDO Minister (): The British Council is an
important international organisation for cultural relations and
educational opportunities for the UK. It supports peace and
prosperity by building connections, understanding and trust
between people in the UK and countries worldwide. It does this by
uniquely combining the UK's deep expertise in arts and culture,
education and the English language, its global presence and
relationships, and its unparalleled access to young people and
influencers around the world.
With a total reach of 598 million people in 2024/25, the British
Council creates mutually beneficial relationships between the
people of all four nations of the UK and other countries. Such
connections, based on an understanding of each other's strengths
and shared values, build an enduring trust. This helps strengthen
the UK's global reputation and influence, encouraging people from
around the world to visit, study, trade and make alliances with
the UK.
In 2024/25 the British Council received £162.5m core grant-in-aid
from the FCDO, and even in tight fiscal circumstances, that core
grant was maintained at that level in 2025/26. On 19 March 2026,
as part of the FCDO's allocation of Official Development
Assistance (ODA) funding for the next three years, it was
announced that ODA funding for the British Council would be
protected at its current levels up to the end of 2028/29, while
non-ODA funding will be increased by £40 million over the same
period. This supports our objective of a financially sustainable
British Council for the long-term.
This funding settlement – against a backdrop of substantial cuts
that have had to be made in other FCDO-funded programmes – is
also a recognition of the continuing financial pressures facing
the British Council, including in relation to (i) repayment of
its loan from HM Treasury, and (ii) the underlying need to update
the organisation's business model. The British Council has put
forward a financial turnaround plan, and the FCDO has
commissioned an independent review of that plan, and the British
Council's cashflow position, to provide a robust evidence base
for future decision-making in this area. FCDO officials are also
engaging constructively and on an ongoing basis with the British
Council Board and Executive to work through the findings.
Copies of the British Council's Annual Report and Accounts for
the 2024-25 financial year have been placed in the library of
both Houses. The Annual Report can also be found at the British
Council's website: www.britishcouncil.org/about-us/how-we-work/corporate-reports
