Steel giant taken into public hands

British Steel was nationalised in July to protect steel production and save 4,000 jobs at its Scunthorpe steelworks, 15 months after the government first intervened to prevent closure.

Daily costs hit £1.3 million

Keeping British Steel running costs £1.3m per day, with total costs estimated to reach £1.5bn by 2028. By mid-June, the government had already spent £555m on salaries and materials.

MPs demand a credible plan

The public accounts committee says ministers cannot explain what business model will make British Steel sustainable or provide estimates of total costs and timescale.

“Beyond simply propping up the company with public money, the government was not able to outline such a plan to our inquiry.”

Wider steel sector at risk

The committee warns that spending all available money on British Steel could starve other parts of the struggling steel industry of needed support, including the newly nationalised Speciality Steel UK.

Former owner demands compensation

Jingye, the previous owner, claims British Steel owed it almost £1bn when nationalised and has started formal proceedings under international law to seek compensation from the government.

Government must publish full strategy

MPs say the government should release a detailed plan covering production models, decarbonisation, financial sustainability, costs, funding sources, and timescale for British Steel's recovery.