In confidence
re
Agency
14.7 The Council aims to secure a substantial share of agency markets for educational and cultural services overseas. Figure 16 reflects assumptions about market growth and
projections of the market share to be achieved by the Council. The different rates of growth reflect business objectives that are described elsewhere in the Plan.
Sponsorship
―
14.8 Having more than doubled business sponsorship in 1989/90, the Council is well on course to achieve its target a 25% increase in the real value of sponsorship each year, so that it rises to £4 million, at 1988/89 prices, by 1992/93. It is premature, at this stage, to predict the rate of growth in sponsorship beyond 1992/93. Approximately 70% of sponsorship is received in cash as agency funds and 30% is provided in kind; two-thirds of all sponsorship is negotiated by Representatives overseas.
Cost-sharing
14.9 The Council is committed to enhancing the value it secures from the government grant by sharing the cost of its activities both through business sponsorship and through co-financing with private individuals and public-sector bodies at home and overseas. Co-financing, like sponsorship in kind, is not British Council income and is not easy to monitor because it does not
pass through the Council's accounts. During 1991/92, the Council will assess the costs and benefits of collecting data on the total amount of cost-sharing (sponsorship and co-financing) that its programmes attract.
Government grants
14.10 The amount by which the government's uplift factor (2.5% for risen costs) will fall short of actual inflation experienced by the Council is forecast as £4.9 million in 1991/92, £2.9 million in 1992/93 and £2.3 million in 1993/94 a total of £10.1 million by the end of the triennium. This forecast is based on assumptions about the future rate of UK price and salary inflation (including the Chancellor's budget statement in March 1990) and on assumptions about future compensation for the effects of overseas inflation and exchange rates on overseas budgets. It assumes no additional provision from government for exceptional risen costs beyond the recurrent £3 million awarded from 1990/91.
14.11 Figure 18 illustrates the difficulties of planning for deployment of the grant-in-aid. It shows:
⚫ the forecast made in CP1
⚫ the CP3 forecast, reflecting increases in the grant in 1989/90 and 1990/91 and cash limiting during the triennium, as in tables 1 and 17
• CP3 plans: the level of grant required from 1991/92 onwards, to compensate for exceptional
£ thousand
Sponsorship by region and activity
1989/90
1,491
900
800
700
600
500
400
300
200
100
0
Western Europe
Americas
Arts
Asia Pacific
UK/HQ
English language
and literature
Libraries, books
and information
Middle East and North Africa
Figure 17
Africa
South Asia
Eastern Europe
Interchange of people
Science
and education
43