Government's intervention in British Steel

Rising energy prices, decarbonisation, uncertainty over trade and tariffs from the EU and US, as well as increased global competition have placed the UK’s steel industry under significant pressure in recent years. In January 2026, British Steel employed 4,052 permanent staff and had a production capacity of three million tonnes per year. British Steel currently … Show more

Rising energy prices, decarbonisation, uncertainty over trade and tariffs from the EU and US, as well as increased global competition have placed the UK’s steel industry under significant pressure in recent years. In January 2026, British Steel employed 4,052 permanent staff and had a production capacity of three million tonnes per year. British Steel currently supplies 80% of Network Rail’s steel requirements under a £500 million contract and its Scunthorpe site is home to the UK’s last remaining blast furnaces. In April 2025, the UK Government passed emergency legislation in a day to prevent the closure of British Steel’s blast furnaces, following concerns that they would be closed, putting UK industries and jobs at risk. The Public Accounts Committee published a report in June 2025 which highlighted the competing priorities for government when supporting industries, such as steel, whilst also working within the constraints of existing policies, such as those designed to support decarbonisation. The Committee called for greater transparency on how decisions are made in such circumstances, and for government to set out the measures it will take to ensure it can respond effectively to emerging issues that affect UK businesses. A report from the National Audit Office (NAO) found government has spent £377m on its intervention so far, with no clear end date or exit strategy. The report also stated that the intervention has not stabilised the company’s finances, and costs will continue to increase until the intervention has ended. Proceeding from the NAO report, the Committee will take evidence from senior government officials on topics including current operations, as well as future concerns and risks. The Committee also plans to hear from who are dependent on the successful delivery of the Government’s intervention. If you have evidence on these issues, please submit here by 23.59 on Monday 18 May 2026. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues . Show less