Baroness Alexander of Cleveden
Main Page: Baroness Alexander of Cleveden (Labour - Life peer)
Baroness Alexander of Cleveden (Lab)
Follow that, as they say. I begin my remarks by congratulating my noble friend Lady Hyde on an excellent maiden speech. I also look forward to that of the noble Lord, Lord Barber, whom I have known and admired for many years, and who shares a comparable commitment to public service.
My noble friend Lady Hyde has shared with us something of her own rich hinterland, and I want to take a moment to reflect on what she brings to this House. There are many noble Lords who know the pleasures and the pain of leading a think tank, and my noble friend has led the oldest and most venerated of them all in the Fabian Society. But there are very few noble Lords who can match her long experience of our prison system, a prison PhD and working with and for the most vulnerable in our communities. My noble friend’s expertise has been honed by years of working alongside those trying to rebuild their lives. She has lived the how of tackling human trafficking, preventing suicide, reducing violence against women and countering addiction. I suspect that she is not a woman who is going to allow casual claims about a broken Britain to pass unexamined in this place.
My noble friend’s love of the arts and their liberating potential will be a welcome tonic to our sometimes philistine instincts. I feel certain that Sara—not Sarah but Sara—with her own deep commitment rooted in her rich faith life, her values and her convictions, will both challenge and inspire your Lordships’ House in the years to come. I know I speak for the whole House when I say that my noble friend Lady Hyde is very welcome indeed.
I thank the Liberal Democrats for tabling this Motion. The Minister replying today, the noble Lord, Lord Lemos, is a former distinguished deputy chair of the British Council. I currently serve in that role, and it is what I want to focus on today.
This morning the Prime Minister met the Chinese President, so it is fitting to start with that familiar Chinese proverb about tree planting: the best time to plant a tree was 20 years ago and the second-best time is now. Soft power is like a tree. Its success is measured in decades and not in a single season. The British Council is a tree that we planted 90 years ago to nurture soft power. But today, by simply focusing on the season, we risk allowing it to wither. This tree has weathered the storms of fascism, war, the rise of the United Nations, the Cold War, the fall of Berlin, the pandemic and the fracturing of the rules-based order. The tree bends with the winds of geopolitical change, but the soft power purpose remains connection, trust and understanding. The British Council is not about military power or high diplomacy; it is about links that last.
Our British history—the history of empire, its rise and fall—makes this country a place of fascination, frustration, anger and fidelity for people around the world: people who want to know Britain better. We used to know this. Our enemies and our friends know this, but since the crash, the council has had a miserable time. In the last 20 years, the government grant to the council has, in essence, been flat, so it has halved in real terms. Meanwhile, the budget of its sponsor department, the FCDO, has grown by more than 50%. In a global context, the financial support for the council’s French and German counterparts is four to six times what we see in this country.
However, during Covid, the Conservative Government extended a loan. Conservative Ministers knew that that loan was not repayable from income; that is why no repayment plan was set at that time. Five years on, and many years of qualified accounts later, the Covid loan is still unresolved. The council offered its art collection—worth £200 million—to the Government to pay down the loan. There was no response. The council has therefore shed 17% of its staff, and the remaining 8,000 at home and around the world worry about their futures and the redundancies to come.
Meanwhile, the council carries on as a tree whose roots are constantly being pulled up by the Government. Last January, the then Permanent Secretary said, “Come up with a recovery plan, work with the Treasury and we will then sort the loan”. In August, the council delivered the plan and officials said, “Sorry, we need another report. We’ll commission EY”. In November, they said, “Sorry, we need another report; this time, we we’re going commission Deloitte”. By December, the NAO had decided that it wanted to get in on the act, and it is commissioning a report, too. Rumour now has it that yet another consultant’s report is to be required before we agree a recovery plan.
I commend to noble Lords what their own official of choice—the noble Baroness, Lady Casey— recently called the “grip and fix” theory of governing. Gripping is the task of Ministers, and fixing means dealing once and for all with that Covid legacy. If the loan remains, it simply kicks the can down the road.
I conclude with three possible solutions for disposing of the £200 million loan. The first is that the Government accept the art collection in payment. After all, HMRC is for ever doing this for artwork in lieu of tax liabilities. Secondly, the FCDO could use its underspend to pay down the loan. Two years ago, it was over £1 billion; last year, it was more than £380 million. Thirdly, the Government could allocate a fraction of the £1.5 billion extra package for the arts that they announced last week. None of this requires cannibalising development assistance. So far, we have landed nothing, so a significant resizing of the British Council is coming. That is inevitable, but my plea is, let us grip and fix.
I want to close by thanking the many noble Lords in all parts of the House who have been part of those efforts. It is time for the Government to nourish the soft power tree that this country planted 90 years ago.