British Steel Bailout Costs Projected to Reach £1.5 Billion by 2028
The UK government is spending £1.2 million daily to support British Steel, with costs potentially reaching £1.5 billion by 2028. The National Audit Office reports that production has consistently fallen short of targets and aging infrastructure has led to operational issues. The Department for Business and Trade has allocated £377 million so far, with no clear repayment schedule. The future of British Steel remains uncertain, with options for its ownership and operational structure under consideration as the government continues discussions with its Chinese owner, Jingye.
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British Steel's financial support from the UK government is costing £1.2 million daily, with projections estimating total costs could reach £1.5 billion by 2028. The National Audit Office revealed that the Department for Business and Trade (DBT) has spent £377 million to keep operations running at Scunthorpe, where production is consistently below targets.
Jingye, the Chinese owner, reported losses of £700,000 per day and considered closing the site. The DBT's intervention has delayed potential shutdowns but raised concerns over long-term financial viability. A Steel Strategy is expected soon, with options including ownership transfer and a shift to electric arc furnaces being evaluated.
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