Minister for Industry (): 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. In addition
to today's statement, on 23 October my ministerial colleagues
and Baron
Stockwood of Great Grimsby and Cleethorpes led a debate in the
House of Lords entitled 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 £274 million for working capital,
covering items such as raw materials, salaries, and addressing
unpaid bills, including for SMEs in the supply chain. This will
be reflected in the Department for Business and Trade's accounts
for 2025-26.
I visited British Steel on 6 November to meet with the company's
UK management and trade unions. The visit was in the same week as
the 50th anniversary of the Queen Victoria blast
furnace disaster that occurred in Scunthorpe in 1975, which
British Steel employees and the local community commemorated on 4
November. The loss of life and the profound impact of that event
on the local community remain a stark reminder of the critical
importance of health and safety standards across all industrial
operations. I laid a wreath at the memorial to the disaster in
remembrance to those who had lost their lives.
Work continues to develop an impact assessment, which will be
published in due course following Regulatory Policy Committee
scrutiny. We are also continuing work on the introduction of a
compensation scheme for steel undertakings in scope of the Act.
We continue to work with Jingye to find a pragmatic, realistic
solution for the future of British Steel. As we have stated
previously, our long-term aspiration for the company will require
co-investment with the private sector to enable modernisation and
decarbonisation, safeguard taxpayers' money and retain
steelmaking in Scunthorpe. Once a solution is found, we will
terminate the directions issued to British Steel under the Steel
Industry (Special Measures) Act 2025 and make a statement on the
need to retain, or repeal, the legislation.
