On March 17, sources revealed that the British Council (BC), a public institution under the United Kingdom government, is facing a financial crisis. BC administers the English-speaking test, a key component of public high school entrance exams in the Tokyo Metropolis.
BC has already informed the Tokyo Metropolitan Government about its financial difficulties but promised to continue administering the test. However, concerns are mounting about the program’s sustainability due to ongoing discussions within BC about potential downsizing. There is also a limited number of alternative providers capable of administering the test.
According to the Tokyo government, BC’s Japan-based representatives reported around the end of January that “the difficult financial situation caused by the COVID-19 pandemic is ongoing.” This statement followed media reports in the UK earlier this year highlighting BC’s severe financial crisis.
Debt and Downsizing
Interviews with sources and local media reports indicate that BC is burdened with £197 million GBP (about $254 million USD) in debt due to cash flow deterioration during the pandemic. To address the crisis, the organization is considering selling its art collection and scaling down operations.
The speaking test was first introduced in the 2023 entrance exams for public high schools in Tokyo. Initially, major educational publisher Benesse Corporation participated but withdrew after two years, reportedly due to concerns about profitability.
Students at a Tokyo Metropolitan Hibiya High School for the junior high school English speaking test on November 27, 2022. Chiyoda Ward, Tokyo. (©Sankei by Takumi Kamoshida)
After Benesse’s withdrawal, BC was the only organization to step forward during the public bidding process. It assumed responsibility for administering the test starting with the 2025 entrance exams. Without BC’s involvement, the test’s implementation would have been in serious jeopardy.
Despite the uncertainty surrounding BC’s financial stability, the Tokyo government is taking a wait-and-see approach. Officials stated, “We have a six-year business agreement with BC and have no plans to reconsider it at this time.”
In response to inquiries from The Sankei Shimbun, BC acknowledged the financial challenges but emphasized, “Our operations in Japan are continuing without interruption, and the Speaking Test is regarded as one of our most important projects.”
About Tokyo’s Speaking Test
The speaking test, introduced in the 2023 high school entrance exams, aims to develop balanced proficiency across the four skills: listening, reading, speaking, and writing. It was the first such initiative by a public school system in Japan. Since the 2024 exams, the test has also been extended to first- and second-year middle school students.
During the test, students wear a headset and respond orally to questions displayed on a tablet device. Their results are factored into admission decisions for Tokyo Metropolitan High Schools.
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(Read the article in Japanese.)
Author: Wataru Utsugi, The Sankei Shimbun
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