Nearly 80 per cent of British Council staff in Italy face redundancy under proposals that would shut down the organisation’s English language teaching centres in the country after 80 years, prompting strikes and a protest outside the British embassy in Rome.
Of 130 teaching staff across Rome, Milan and Naples, 108 are being targeted for redundancy, according to sources familiar with the plans. The move would end the British Council’s direct provision of English language tuition in Italy, a core part of its global mission to promote British culture and education. Staff are described as “shocked, very upset, very sad, obviously also very angry”, with one source saying the cuts send “a very strong political message that Italy isn’t important”.
Workers are due to protest at the British embassy in Rome on Thursday, with a further strike planned for 4 June. The Italian General Confederation of Labour (CGIL) condemned the proposal, saying the British Council is a “cultural institution, not a corporation” and that firing more than 80 per cent of the workforce “deprives Italy of this opportunity” for cultural and educational cooperation.
£197m pandemic loan driving the cuts
The drastic reduction in Italy is a direct consequence of a wider funding crisis at the British Council, which the organisation’s chief executive, Scott McDonald, has warned is “nearly insolvent”. The central driver is a £197m loan provided by the UK government during the Covid-19 pandemic under Boris Johnson’s Conservative administration. The loan carries a reported annual interest of around £14m and must be repaid by September 2026.
McDonald told the foreign affairs select committee in October last year that despite 16 months of negotiation with the Foreign, Commonwealth and Development Office (FCDO), the situation had stalled and the organisation remained in “real financial peril”. The FCDO has stated that because the British Council engages in commercial activities, it is subject to subsidy controls, and the government remains committed to recovering the loan once the organisation’s finances allow.
The British Council has been forced to sell assets to stay afloat. It has already sold its lucrative exams business in India for £130m and buildings worth around £90m. Reports have indicated potential closures in up to 60 countries as a result of the ongoing funding pressures.
The three main income streams that generate roughly 85 per cent of the British Council’s turnover — teaching, exams and development contracts — all came under severe pressure during and after the pandemic. The UK has reduced its spending on development, and with US development aid no longer available there are fewer international projects to compete for. The remaining 15 per cent of income comes from grant-in-aid funding from the FCDO, which last year stood at £162m. Around 80 per cent of that grant is allocated for official development assistance, supporting UK international development goals through arts, culture, education and English language programmes.
An internal consultation document, reported by Politico, lists 784 jobs “in scope” across the UK and Europe, with at least 404 roles expected to be displaced — representing 15 per cent of staff in the region. Consultations are also understood to be taking place in France, Spain and Portugal.
Erosion of UK soft power
The cuts have been described by critics as a “false economy” that undermines the UK’s ability to attract investment, build alliances and maintain trust internationally. McDonald has previously warned that the British Council could “disappear” within a decade, harming the UK’s global status and leaving an international vacuum that could be filled by Russia and China unless the government acts to save it.
The British Council has operated in Italy since 1945, building a network of teaching centres that shaped English language learning across the country. Under the current proposals, its exams division would continue under partners and cultural events would remain, but the teaching centres — the organisation’s most visible public face — would close.
A British Council spokesperson said the organisation continued to face financial challenges after the pandemic, including the need to address a “significant funding gap” and the repayment of the £197m government loan. “We are taking all necessary steps to significantly cut costs and grow our revenue so the organisation is modern, efficient and able to adapt to changing economic conditions,” the spokesperson said. “We are reviewing our operations in several countries and in some cases considering changes to our activities. This includes a proposal to close the British Council’s teaching centres in Italy due to profound changes to learner demand.”
The spokesperson added that the British Council was “hugely proud” of its contribution in Italy and would continue its wider work there, including exams and cultural and education programmes, through partnerships. The organisation said consultations on proposals for change were at an early stage and it was unable to share further information.
