The National Audit Office (NAO) reported that the government spent £377 million between April 2025 and January 2026 to keep British Steel operating, with the Department for Business and Trade classifying the spending as a loan. However, the NAO found there is no set budget, repayment schedule, or end date for the spending. 5 billion by 2028.
The government took control of British Steel's Scunthorpe plant on 12 April 2025 to prevent the closure of the last two blast furnaces, which would have led to the loss of 3,200 jobs and affected customers like Network Rail, according to the NAO. British Steel employs about 2,700 to 3,500 people at its Scunthorpe plant, according to the NAO and media reports. The £377 million included £15 million on advisers and £359 million on operating activities, the NAO said.
DBT was able to act quickly to save British Steel's Scunthorpe furnaces from closure, avoiding heavy job losses and serious impacts on major UK infrastructure and construction projects. However, the trade-off is the significant cost of maintaining operations, and uncertainty over how long this will continue. DBT should learn from this experience to be better prepared for future interventions.
Before the government takeover, British Steel's Chinese owner Jingye was losing £700,000 per day, according to Jingye. A deal has not yet been struck to compensate Jingye and formally take ownership of British Steel, according to multiple media reports. Gareth Davies, Head of the NAO, said: "DBT was able to act quickly to save British Steel's Scunthorpe furnaces from closure, avoiding heavy job losses and serious impacts on major UK infrastructure and construction projects.
However, the trade-off is the significant cost of maintaining operations, and uncertainty over how long this will continue. " A government spokesperson said: "We've been clear that safeguarding UK steel making is our priority. We're continuing discussions with Jingye to agree a pragmatic and realistic solution to secure the long-term future of the Scunthorpe site.
I would hope that it's resolved as soon as possible, certainly by the summer. In the short term, it needs to come into public ownership so that the business can make its own decisions about its future. And that future may well involve new investors or new owners.
" There is uncertainty about whether the government plans to nationalise British Steel. The Sunday Times, via The Guardian, reported that full nationalisation is expected to be announced in the King's speech. However, industry minister Chris McDonald told BBC News that no decision has been made on whether to nationalise the company.
According to BBC News, McDonald described that if a good resolution can be reached with Jingye, that would be the quicker and cheaper route. According to BBC News, Nic Dakin, Labour MP for Scunthorpe, described that he hopes the situation is resolved as soon as possible, certainly by the summer, and that in the short term the plant needs to come into public ownership so the business can make its own decisions about its future. According to BBC News, Thomas Smith, a steelworker and branch secretary for the Community Union, described that a year on, they are not really any further and everyone wants to know what's next.
en Global Investments, according to media reports.