Find a credible plan for British Steel, ministers told as ‘startling’ costs soar
Summary
The UK government nationalized British Steel in July to protect steel production and jobs, but the company is costing taxpayers £1.3 million a day. A government committee criticized the lack of a clear plan for making the business financially stable and called for a detailed plan showing future costs, production goals, and funding.Key Facts
- British Steel was nationalized by the UK government in July to protect the steelworks in Scunthorpe and 4,000 jobs.
- It costs about £1.3 million per day to keep British Steel operating.
- The total cost to taxpayers could reach £1.5 billion by 2028.
- By mid-June, the government had spent £555 million on salaries and raw materials.
- A parliamentary committee said ministers cannot explain a plan to make British Steel financially sustainable.
- The government has not estimated how long it will support British Steel or the total expected cost.
- The company’s former owner, Jingye, claims it is owed nearly £1 billion and is seeking compensation under an international treaty.
- China expressed strong dissatisfaction with the UK’s decision to nationalize British Steel, affecting UK-China relations.
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