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Mon, 16 Mar 2026

Mon, 16 Mar 2026 Steelworks costing £1.3m a day to run

The government spent £377m to keep British Steel's Scunthorpe site operating, according to a report.
The UK government spent £377m over nine months to keep British Steel's Scunthorpe site operational, according to a report by the National Audit Office (NAO). The report found that ongoing operations were costing the Department for Business and Trade around £1.3m per day, with no set budget or repayment schedule in place. The government intervened to prevent the closure of two remaining blast furnaces in the UK, which would have led to job losses and significant disruption to industry. Spending by the DBT was classified as a loan, but it is unclear whether British Steel will be able to repay it. The NAO estimates that spending could reach £615m by June and exceed £1.5bn by 2028 if continued at current rates. The government's intervention came after previous owner Jingye announced plans to close the blast furnaces due to challenging market conditions, tariffs, and high environmental costs. Emergency legislation was passed to allow DBT to instruct British Steel to continue operating its blast furnaces, and a team was mobilised on site to secure raw materials. A spokesperson for the government said that they are determined to support British steelmaking now and in the future, while union representatives praised the decision as necessary to prevent "catastrophic" financial and social impacts.