Minister for Reindustrialisation (): During the passage
of the Steel Industry (Nationalisation) Act 2026 the Government
promised to provide regular updates to Parliament on British
Steel.
In line with the Act's provisions, British Steel entered public
ownership on 16 July 2026.
This statement provides an update on the financial and
operational performance of British Steel under public ownership
and the company's governance and strategic direction.
Governance and Strategic Direction
In July 2026, Ministers appointed a new Board of Directors. This
was followed by the appointment of Alan Lovell as Chair in
September. Two further Board members are shareholder
non-executive directors representing Government, one from the
Department for Business, Innovation, Science & Trade and one
from UK Government Investments.
Mr Lovell and the Board's immediate priorities include overseeing
the stabilisation of British Steel, maintaining a strong focus on
health and safety, and developing proposals for a commercially
and environmentally sustainable future for the business. As set
out in the Steel Strategy, securing the long-term future of
Britain's steel capability and capacity will require both public
and private investment.
The Chair, in consultation with the Department, is also looking
to strengthen the Board and management team to ensure it has the
capacity and capability to address the objectives. The Board is
currently recruiting a Non-Executive Director to Chair its Audit,
Risk & Assurance Committee. Further appointments are
expected, and the Government will monitor progress closely.
Governance arrangements, including how the relationship between
Government and British Steel will work in practice, will be set
out in the British Steel Framework Document, in line with
standard practice for Government-owned companies. The Framework
Document will be published shortly.
Financial and Operational Performance
British Steel has continued to trade and operate across its
sites, maintaining steel production and supplies to customers.
Since April 2025, the Government has provided £751 million in
working capital support for British Steel. This funding has
supported the continued operation of the business, including
expenditure on raw materials and salaries.
The guarantees the Secretary of State gave to Npower Commercial
Gas Limited and SEFE Energy Limited, to keep British Steel's
energy supplies in place while the company was under the Steel
Industry (Special Measures) Act 2025, are no longer needed now
the company is in public ownership. The Department gave formal
notice to both suppliers on 27 August 2026, and both guarantees
ended on 10 September 2026, without being utilised.
British Steel has enhanced governance and accountability for its
Safety Improvement Plan, with implementation ongoing for all 34
initiatives scheduled for year one. The Government and Board will
continue to press for sustained improvements and ensure that
health and safety remains at the heart of the company's
operational and transformation plans.
The Government welcomes the scrutiny provided by the Public
Accounts Committee and is carefully considering its
recommendations as part of ongoing work to ensure appropriate
governance, transparency and value for money at British Steel.
