Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government how many tonnes of steel procured by the Ministry of Defence in financial years (1) 2023–24, and (2) 2024–25 were (a) produced in the UK, and (b) imported; and, in the case of imported steel, from which countries that steel originated.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The main Defence requirements for steel are generally sourced by our prime contractors. The publication of cross-Government steel data is led by the Department for Business and Trade and is routinely published on gov.uk at the following link: https://www.gov.uk/government/collections/steel-public-procurement I have attached the tables for 2023 and 2024.
The data available shows both the tonnage and origin of steel procured for Ministry of Defence programmes.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government how many tonnes of steel were procured by the Ministry of Defence in financial years (1) 2023–24, and (2) 2024–25.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The main Defence requirements for steel are generally sourced by our prime contractors. The publication of cross-Government steel data is led by the Department for Business and Trade and is routinely published on gov.uk at the following link: https://www.gov.uk/government/collections/steel-public-procurement I have attached the tables for 2023 and 2024.
The data available shows both the tonnage and origin of steel procured for Ministry of Defence programmes.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, further to the Written Answer by Baroness Lloyd of Effra on 9 March (HL14773), what assessment they have made of whether the blast furnaces at Scunthorpe steelworks are critical national security assets.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what plans they have, if any, for decommissioning the blast furnaces at the Scunthorpe steelworks; and what estimate they have made of the cost of decommissioning.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how long they plan to fund the operation of the Scunthorpe steelworks; and what is the maximum budget for funding those steelworks.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government who is responsible for the publication of British Steel's statutory accounts for the year ending 31 December 2024.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, further to the Written Answer by Baroness Lloyd of Effra on 9 March (HL14773), whether they will publish a breakdown of the £104 million provided to British Steel for "other operational expenses".
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government who is responsible for non-cash expenditure at British Steel, including carbon obligations under the EU Emissions Trading Scheme and UK tax liabilities such as landfill tax.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what contingency provision they have made in the event that losses at British Steel’s Scunthorpe steelworks materially exceed current forecasts.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to ensure value for money for taxpayers while they remain in operational control of a loss-making steel producer.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.