Question to the Department for Business, Innovation, Science and Trade:

To ask His Majesty's Government when they intend to publish a business plan for restoring British Steel to financial sustainability; and whether that plan will include a timetable for achieving commercial viability without ongoing taxpayer support.

Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)

Since British Steel came under public ownership in July, the Government has put in place a new Board, chaired by Alan Lovell. The new Board has been tasked with developing a plan for the long-term transformation and competitiveness of British Steel. Information regarding the transformation plan is expected to be published once it is agreed.

Ministers and the company are very cognisant of the need to provide as much transparency as possible in relation to future plans for the company, and we will work with the company to determine what information should be published at the appropriate time.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the annual cost of compliance with the UK Emissions Trading Scheme to (1) British Steel, and (2) the UK steel industry as a whole; and what projections they have made of those costs for each year to 2030, taking account of changes to free allowances.

Answered by Baroness Curran - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)

Under the UK Emissions Trading Scheme (UK ETS), annual compliance costs for individual sites are determined by their reportable emissions and the price of UK ETS allowances, which is determined by the market. The Government, as part of the UK ETS Authority, is a convenor of the market and therefore not able to comment on current prices or price movements.

The UK ETS Authority provides free UK ETS allowances to sectors such as steel to mitigate the risk of carbon leakage, over 2021-2025 the sector received free allocation covering 95% of the sector’s annual emissions. Out to 2030, the steel sector will continue to be eligible to receive free allowances, however these will be gradually reduced from 2027 once the UK Carbon Border Adjustment Mechanism (UK CBAM) comes into force and replaces free allowances as the primary carbon leakage mitigation.

As regards British Steel, the Government has recently appointed a Chair and Board that will develop proposals to secure a commercially and environmentally sustainable future for the business. The introduction of the UK CBAM and reduction of UK ETS free allowances will be taken into account during the development of the plan.

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