May I pay tribute to the hon. Member for her overseas work as the British Council’s former director of communications? [Hon. Members: “Hear, hear!”] I understand that she was posted in London, Paris, Tokyo and Shanghai. I am jealous, as my assignments in my overseas postings were rather different.
The British Council’s board of trustees is responsible for the organisation’s financial sustainability. As an FCDO arm’s length body, the British Council received £162.5 million of grant in aid funding in 2024-25. My noble Friend, Baroness Chapman, oversees this as the Minister responsible. This contribution supports the British Council’s role as a soft power asset, promoting UK arts and culture, education, and the English language.
Mr Speaker, may I declare another interest as the officer of the British Council all-party parliamentary group?
The British Council delivers more than £1 billion-worth of global impact for the UK every year. During the pandemic, it was forced to close 18 country operations, none of which has since reopened. The then Foreign Secretary Dominic Raab gave it an emergency loan, but set it out on commercial terms. The interest on this loan is costing the British Council £14 million a year. Will the Minister help the British Council keep delivering on the Government’s growth, security and soft power objectives and consider reviewing the terms of the council’s loan, extending the date for beginning repayments, reducing the commercial rate of interest, or redesignating the loan—
Order. Nobody else will be able to get in. I call the Minister.
Ministers are aware of the issues in relation to the £200 million. As the hon. Member said, the loan was made on commercial terms in order to be compliant with the UK subsidy control regime. On 6 January, my ministerial colleagues the Foreign Secretary and Baroness Chapman met the chief executive officer of the British Council to discuss these issues.
As we have already heard, the British Council is vital to the UK’s soft power across the world. At such an important time for the promotion of our values of democracy, freedom and human rights, reports that the British Council may have to close 30 to 40 operations is deeply worrying. What steps is the Minister taking to secure the future of the British Council’s existing programmes?
I pay tribute to my hon. Friend for his long-held commitment on these issues. Soft power is an issue of the most vital importance, particularly in this contested world. I am very pleased to confirm, as the Foreign Secretary already has, that we are establishing a soft power council in the coming days. That is an important initiative and the British Council will be an important part of that work. In relation to country offices, the British Council retains a significant physical presence in more than 100 countries, which is welcome, and has a growing presence online, which is to be encouraged.