Chris McDonald
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British Steel
Chris McDonald Excerpts(1 day, 12 hours ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025.
The Government’s priority remains to maintain the safe operation of the blast furnaces at British Steel. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production and monitoring the use of taxpayer funds.
On funding, the position remains that all Government funding for British Steel will be drawn from existing budgets, within the spending envelope set out at spring statement 2025. To date, we have provided approximately £370 million for working capital, covering items such as raw materials and salaries. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
We continue to work with Jingye to find a pragmatic, realistic solution for the future of the site. Once a solution is found, we will terminate the directions issued to British Steel under the Act and make a statement on the need to retain, or repeal, the legislation. As we have stated previously, our long-term aspiration for the UK steel sector will require co-investment with the private sector. Across the steel sector, private sector involvement enables modernisation and decarbonisation and safeguards taxpayers money.
Impact assessment relating to the Steel Industry (Special Measures) Act 2025
The impact assessment relating to the Steel Industry (Special Measures) Act 2025 published on 22 January focuses on the rationale and impacts of the Act, namely providing optionality to address the risk that financially distressed owners could trigger unmanaged closures of major UK steel assets leading to irreversible loss of domestic steelmaking capability.
The IA can be accessed here: https://www.gov.uk/government/publications/steel-industry-special-measures-bill-2025-final-impact-assessment
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