The head of the British Council has this week proposed transferring the organisation’s vast art collection to the UK government in a bid to offset debts of almost £200m.
The collection comprises almost 9,000 British art works of the 20th and 21st centuries by artists including Lucian Freud, David Hockney, Tomma Abts and John Akomfrah. The works have no permanent gallery, with around a fifth of on display at any one time in the UK and internationally.
Scott McDonald, the chief executive of the UK’s international organisation for cultural relations, told the foreign affairs committee in the UK Parliament that the organisation is in “real financial peril” and “selling everything” it can to survive.
The Art Newspaper understands that a review of the council’s collection is also currently being conducted, and that any works found to be outside of its remit could be considered for disposal in line with the UK Museums Association disposal code, although no final decisions have yet been made.
The council’s financial situation worsened after taking out an emergency £250m loan from the government during the Covid-19 pandemic. The outstanding debt is now £197m, and the council pays £12m to £15m annually in interest on the loan.
McDonald described a transfer of the council’s art collection in lieu of repaying the loan as “a good solution for everyone”. However, he claimed that ministers have displayed little interest in the move, stating that he had made “close to no progress” with the government.
According to the Financial Times, in a bid to further address its financial situation the council also plans to cut more jobs and sell assets including buildings worth about £90m. In addition, as part of a second restructure launched since the pandemic, the organisation reportedly plans to close operations in 35 countries
In recent years the council has sold seven of its buildings, and this year added its school in Madrid to that tally. The Art Newspaper understands that the council plans to consider all saleable assets, in order to fund growth plans and rebuild financial sustainability.
The council is currently undertaking a due diligence exercise with a view to selling other buildings, a move that would require support from the UK Foreign, Commonwealth and Development Office (FCDO) regarding releasing land titles to enable building sales and the retention of proceeds.
Around 85% of the British Council’s turnover is earned through teaching and exams, tendered contracts and partnerships. The council also receives grant-in-aid funding from the FCDO which makes up around 15% of its total income.
A FCDO spokesperson said: “The British Council is operationally independent from the UK government and is free to make its own financial decisions.”
