Stories

Fri, 18 Sep 2026

Fri, 18 Sep 2026 British Steel plan lacks credibility, MPs say

A committee report says the government has not set out how British Steel will become profitable.

* MPs claim the government has no credible plan for the future of British Steel
* The Department for Business, Innovation, Science and Trade (DBIST) did not set out how British Steel would become profitable
* MPs warned that steel tariffs could drive firms out of business or to move abroad
* A 26-page report by the Public Accounts Committee (PAC) found that the government was unable to provide clear estimates of the overall nationalisation cost
* The government had initially projected costs to reach £642m, but later revised this figure to £555m
* British Steel was taken into public ownership in July after years of uncertainty over its future
* The steel industry strategy published by the government in March included an ambition for 50% of UK steel usage to be made in Britain
* However, the report said that without a credible long-term plan, uncertainty and costs for workers, industry, and taxpayers will continue to increase
* The PAC also expressed concerns about the new tariff regime, which could cause smaller businesses to go bust due to higher import taxes on certain types of steel.