Recommendation 1

The Department has not yet set out a credible plan for the future of British Steel, including how the company will become financially sustainable. Despite monitoring British Steel for several years and being aware of the challenges facing the business, the Department had to intervene using emergency legislation to prevent the closure of the blast furnaces. The intervention in April 2025 successfully bought time and provided short-term stability for workers, customers and the wider supply chain, but it did not resolve the underlying problem that British Steel remains structurally unprofitable. The Department took this action without being able to conclude on value for money and still cannot demonstrate how it will achieve it. More than a year later, it could not set out what business model or decarbonisation pathway would put the company on a sustainable footing. Trade unions and the local Council were able to describe a range of practical options for the future of the company and the Scunthorpe site. Without a credible long-term plan, uncertainty and costs for workers, industry and taxpayers will continue to increase. recommendation The Department should publish the plan for the whole of British Steel. We expect this to include options and analysis for the intended future production model and the role of British Steel in the UK economy; the preferred decarbonisation pathway; how the company will become financially sustainable; and the expected costs, funding sources and timetable.