The Commons public accounts committee has issued a report criticizing the UK government for its lack of a clear plan to revive British Steel, which was nationalized last year. Since then, British Steel has incurred losses exceeding £500 million, with daily losses currently at £1.3 million. The committee warns that without a sustainable business strategy beyond ongoing financial support, the situation is not viable and could lead to further economic harm through tariffs imposed on foreign steel competition.
Written locally by qwen2.5:14b on 2026-09-18,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In July 2021, British Steel was taken into public ownership by the UK government to protect steel production and prevent the closure of its Scunthorpe plant, which employs around 4,000 workers. The government has spent £555 million on salaries and raw materials for British Steel since taking control, excluding external advisor costs, and currently spends about £1.3 million daily to keep the company running. The Public Accounts Committee of MPs reported that ministers have not been able to provide a clear business model or indicative estimates of future costs for taxpayers. Labour MP Clive Betts criticized these "startling levels of funding" as unsustainable without a defined plan, highlighting the need for a credible strategy to ensure British Steel's long-term viability and financial sustainability.
Written for “British Steel Crisis” on 2026-09-18,
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Ministers have ‘no credible plan’ for reviving British Steel despite losses to the taxpayer topping £500 million, MPs have warned.
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MPs → see → million
In a damning report, the Commons public accounts committee said the government was ‘unable to articulate’ a business plan for the troubled firm, which was nationalised more than a year ago.
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which → say → firm
The cross-party committee said the firm is losing £1.3 million a day, with more than £500 million of taxpayers’ money lost since the firm was taken into public ownership.
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firm → say → ownership
Labour MP Clive Betts, deputy chairman of the committee, said the ‘startling levels of funding’ were not sustainable, given the need to support the wider steel sector.
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levels → say → sector
Mr Betts said the decision to nationalise the firm to prevent its closure was understandable given the importance of protecting ‘a critical part of our national infrastructure and security’.
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decision → say → infrastructure
But he added: ‘Having brought British Steel onto the taxpayers’ books, it is now up the government to explain its plan for the future.
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it → add → future
Unfortunately, beyond simply propping up the company with public money, the government was not able to outline such a plan to our inquiry.
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government → prop → inquiry
‘The reality is that British Steel is unable to wash its face and government is now in charge of making sure it gets onto a sustainable footing.’
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gets → wash → footing
British Steel is costing the taxpayer £1.3 million a day
Ministers seized control of the firm’s Scunthorpe steelworks in April last year after talks with its Chinese owners Jingye collapsed.
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talks → cost → owners
At the time, Jingye said the plant was losing £700,000 a day and was no longer sustainable.
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plant → say → 700,000
It was formally nationalised in July last year.
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It → nationalise → July
At the time, Sir Keir Starmer said it was ‘in the national interest’.
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it → say → interest
By the middle of June this year, the government had handed the firm £555 million to cover costs like raw materials and wages.
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government → hand → materials
But the committee said ministers were ‘unable to provide even indicative estimates’ of how much the final bill to the taxpayer might be, choosing instead to ‘continue to fund it without a clear end in sight’.
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bill → say → sight
The committee also warned that tariffs introduced to help protect the firm from foreign competition were now damaging other parts of the economy.
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tariffs → warn → economy
In evidence to the committee, the government said it ‘may well be the case’ that the tariffs bankrupt some British engineering companies reliant on steel products that cannot be sourced in the UK.
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that → say → UK
Mr Betts said MPs ‘expect to see no further complacency from government at small firms going out of business due to its steel tariff regime.’
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MPs → say → regime
Despite the bleak picture, another Commons committee has called on ministers to take control of debt-laden Thames Water.
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committee → call → Water
A report by the Commons environment committee urges ministers to reject a £10 billion rescue deal by creditors, saying it does not have ‘the interests of the public, the company or the environment at heart’.
The committee claims creditors want to ‘extract immediate value from Thames Water, not steer it to long-term success’.
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creditors → urge → success
It urges ministers to put the company into a state-controlled ‘special administration’ regime.
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It → urge → regime
The Department for Business, Industry and Trade said nationalising British Steel was just the ‘first step’ towards securing its long ter future.
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nationalising → say → future
A spokesman said: ‘Taxpayer value for money remains a central consideration in our assessment of the future of the site, and we are also backing the communities that rely on it through our steel strategy to build a sustainable, competitive and decarbonised steel sector for the years ahead.’
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that → say → years
The Aporia
