An entrepreneurial public service

08 October 2012

 

 
 
 
A UK public service
  • We create international opportunities for the people of the UK and other countries and build trust between them worldwide.
  • We make a unique contribution to the UK’s international standing and to the long-term prosperity of our countries: the trust which we build for the UK is a major asset for our country.
  • Our core UK government funding and Royal Charter commit us to public service, delivering for the good of the UK and the countries where we work.
  • Our Royal Charter establishes our purpose as building cultural relations with other countries.  
  • As the UK’s international body for international educational and cultural relations, our work in English language, the arts and education creates genuinely mutual benefit for the UK and other countries.
  • Our work showcases and embodies the values of the UK – openness, diversity and respect for other cultures.
 
A 21st century model of public service
  • We believe that at a time when government funding has to be limited, a mix of public and other income is the best way for many organisations to deliver their benefits to individuals and societies. In the British Council’s case this is building trust and opportunities for people in the UK and around the world. 
  • to deliver our mission, we combine commercial, contract delivery and partnering skills with a public service ethos and core UK government funding. 
  • We charge for activities where local economic conditions mean customers are able to pay.  And when we deliver under contract to governments, funders or donors, we cover our costs. 
  • This means that we are able to deliver maximum benefit for the UK at minimum cost to the taxpayer.
  • Our UK government grant pays for our presence in many countries – such as in conflict zones and developing countries – as well as the delivery of some of our programmes in international development, international education and the arts. 
  • As well as offering paid services in English language and education, we work in partnership with other great British institutions and private sector partners.
  • Our model builds on the combination of core government funding and the entrepreneurship which typifies the great British cultural institutions and universities.
  • All of our activity, whether paid for by the user or funded from other sources, contributes to the delivery of our cultural relations mission and is regulated by the Charities Commission and verified by the National Audit Office. 
  • All of our income-earning work is ring-fenced to ensure there is no subsidy from our public funding.  This is audited annually by the National Audit Office.
 
FACTS
 
In 2011–12, the British Council’s turnover was £734 million, with only £181 million Foreign Office grant funding. For every £1 of Foreign Office grant we generated £3.09 of income from other sources. 
 
By 2015, only 16% of our funding will come from our government grant – this means that, out of every £6 we spend on building trust and influence for the UK, only £1 will be funded by our government grant.
 
By 2015, our UK government grant will have fallen by over 26% in real terms. However, by increasing the income we generate for ourselves, we plan to grow our turnover during this period by 29% so we can maintain our global reach and impact.
 
We are a registered charity, incorporated by Royal Charter in 1940. We are also a non-departmental public body, aligned with the UK’s long-term international priorities through our sponsoring department, the Foreign and Commonwealth Office. 
 
We generate the majority of our income through teaching English, providing international access to exams and qualifications, winning and delivering education and development contracts and through partnerships with public bodies, donors and the private sector.
 
Our government grant remains a vital element of our funding that enables us to represent the UK’s long-term interests in countries where we cannot rely on earned income.
 
Last year, we worked with more than 580 million people worldwide. We worked with 12.5 million people face-to-face, a 20% increase on the previous year. 
 
Research by Chatham House has placed the English language, education and culture as the top three factors in supporting the UK’s overseas reputation.
 
The trust generated annually for the UK by the British Council’s activities has an estimated lifetime value of £1.2 billion for the UK economy. 
 
Research commissioned from ICM in 2011 found that in recruiting new employees, 79% of employers considered knowledge and awareness of the wider world as important, compared to those that considered the following important: rated degree subject and classification (74%), A-level results (68%), or A-level subjects (63%).