The British Council may be forced to put its £200million art collection up for sale as a result of ‘financial peril’ which is threatening the institution.
The council is facing £197million in outstanding debt after taking out an emergency £250million loan from the government during the pandemic.
Due to its poor credit rating, the government is charging interest at a rate of £14million per year, according to the Times.
It means the collection’s paintings – which include works by artists such as Henry Moore, Tracey Emin and David Hockney – are now under threat.
The council, which is based in the Olympic Park in London, is responsible for promoting the UK’s culture and language abroad.
This includes advocating for British art and culture, supporting education and promoting the English language.
It is estimated to have reached almost 600million people last year, and amasses 85 percent of its income through commercial means, such as running exams and teaching English classes.
During its 90 year history after being founded in 1934, the council has become a staple representative of the UK overseas.
But chief executive Scott McDonald has now warned it is facing increasing ‘financial peril’ which could force the sell-off of masterpieces.
These include works such as a 1980 piece by Freud entitled Naked Portrait with Egg, and a 1994 dot painting by Damien Hirst.
Others potentially at risk are the first-ever purchased artwork, Lucian Freud’s Girl with Roses, and a 1942 Duncan Grant canvas of the Bloomsbury group’s Sussex home.
Around a fifth of its works are on loan around the world at any given time, while the rest remain in storage.
Half of the 9,000-piece collection is said to be protected from sale due to agreements with artists who donated their works on the condition they would never be sold.
But the rest are at risk at sale, with the British Council declining to provide a list of affected works.
Mr McDonald reportedly told MPs last week he is ‘exploring what we can sell of the 50 per cent [of the collection] that is not restricted’.
He added: ‘Everything the British Council has, which is not that much any more, we are exploring selling.’
This could also include half of its 40 buildings from around the world.
In addition almost 1,500 staff at the British Council have reportedly already been sacked.
A British Council spokesperson said: ‘Formed 90 years ago by the Government to build connections, trust and understanding between the people of the UK and countries worldwide, the British Council is one of the UK’s key drivers of soft power.
‘We operate on-the-ground in over 100 countries, and our global presence strengthens the UK’s reputation worldwide.
‘Our work in arts and culture, education and the English language encourages people from all over the world to visit, study, trade and make alliances with the UK, with a direct positive impact on the economy – however without action from Government, that work is at risk.
‘A British Council that is in retreat is a blow to the UK in the competition for influence on the world stage. We are taking all steps necessary to secure the long-term financial sustainability of the British Council, including a review of our assets.
‘We are asking the Government to act urgently to relieve the burden of our pandemic loan and the pressures of a decade of declining grant funding to ensure that we can continue with our mission to support peace and prosperity for the people of the UK and millions of people across the globe.’
