British Council may sell half its £200m art collection to repay £197m pandemic debt

Facing a £197m debt from a pandemic-era government loan, the British Council is exploring selling up to half of its 9,000-work art collection valued at £200m. CEO Scott McDonald warned The Guardian the institution risks disappearing without financial support, potentially closing operations in 30-40 countries. The council receives £160m annually from the government—just 15% of its income—with the rest from commercial activities like language classes. Comparable European institutions receive far more state funding: Germany's Goethe-Institut gets £900m and France's Alliance Française £600m annually. McDonald seeks more reasonable loan terms, including a 25-year repayment period and lower interest rate, as the current commercial rate costs £14m per year according to The Art Newspaper. Legal restrictions prevent selling about half the collection, but the council is examining what can be sold from the unrestricted portion. The collection includes works by prominent British artists Barbara Hepworth, Steve McQueen, and David Hockney. The British Council promotes UK culture and education across 100 countries worldwide.