The British Council, facing severe financial difficulties, has proposed transferring its extensive art collection to the UK government as a way to offset debts of nearly $200 million. Scott McDonald, chief executive of the UK's international organization for cultural relations, made this proposal to Parliament's foreign affairs committee, describing the organization as being in "real financial peril" and selling everything possible to survive.
The British Council's impressive collection consists of almost 9,000 British artworks from the 20th and 21st centuries, featuring pieces by renowned artists including Lucian Freud, David Hockney, Tomma Abts, and John Akomfrah. The collection does not have a permanent gallery space, with only about one-fifth of the works displayed at any given time in the UK and internationally. According to The Art Newspaper, a comprehensive review of the council's collection is currently underway, and any works determined to be outside the organization's scope could potentially be sold according to the UK Museums Association disposal guidelines, though no final decisions have been reached.
The council's financial troubles deepened significantly after it took out an emergency $250 million loan from the government during the COVID-19 pandemic. The organization now owes $197 million and pays between $12 million and $15 million annually in interest on this loan. McDonald characterized the proposed transfer of the art collection in place of loan repayment as "a good solution for everyone," but expressed frustration that government ministers have shown little interest in the proposal, stating he had made "close to no progress with the government."
To further address its dire financial situation, the British Council is implementing additional cost-cutting measures and asset sales. According to the Financial Times, the organization plans to eliminate more jobs and sell buildings worth approximately $90 million. As part of a second major restructuring effort launched since the pandemic, the council reportedly intends to cease operations in 35 countries. The organization has already sold seven buildings in recent years and added its Madrid school to that list this year.
The Art Newspaper reports that the council is considering all sellable assets as part of its strategy to fund growth plans and restore financial stability. The organization is currently conducting due diligence exercises to evaluate the sale of additional buildings, a process that would require support from the UK Foreign, Commonwealth and Development Office (FCDO) to release land titles and authorize the retention of sale proceeds.
The British Council generates approximately 85% of its revenue through teaching and examination services, contracted work, and partnerships, while receiving grant-in-aid funding from the FCDO that comprises about 15% of its total income. An FCDO spokesperson emphasized the organization's independence, stating: "The British Council is operationally independent from the UK government and is free to make its own financial decisions." Despite this autonomy, the council's current crisis highlights the challenging financial landscape facing cultural institutions in the post-pandemic era.
