UK Government Spending £1.3M Daily to Keep British Steel Afloat, MPs Warn

UK government spending £1.3m daily to sustain British Steel, with no clear plan or end date, MPs warn.

September 18, 2026 One Min Read

POLICY WIRE — London, United Kingdom — UK lawmakers have raised urgent concerns over the lack of a viable long-term strategy to ensure the survival of British Steel, as the government continues to pour millions into its operations without a defined financial roadmap.

The company is currently costing taxpayers £1.3 million per day, according to the National Audit Office (NAO), following an emergency intervention in April 2025 that prevented the closure of its Scunthorpe blast furnaces. The initial investment of £377 million has already been allocated, but ongoing costs remain unbounded, with no set repayment schedule or end date for the financial support.

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The NAO has warned that total expenses could rise to £615 million by June 2026 and potentially surpass £1.5 billion by 2028 if the current arrangement continues. Despite these figures, officials have not provided a ‘credible’ plan for the future of the steelmaker, prompting calls for greater transparency and accountability from the Department for Business and Trade.

Reporting by Policy-Wire (PW)

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