Summary
The UK government has been spending roughly £1.3 million daily to keep British Steel's Scunthorpe plant running, totaling £377 million over nine months. The National Audit Office (NAO) reports this spending aimed to prevent the closure of the last two blast furnaces in the UK, avoiding job losses and broader economic impacts. The funds have been classified as a loan, but there is no clear repayment plan in place.
Key Facts
- The UK government spent £377 million over nine months on British Steel's Scunthorpe site.
- Daily operating costs for the site are about £1.3 million.
- The funding was provided to prevent the closure of the UK's last two blast furnaces, aimed at saving jobs.
- The NAO is the UK's independent public spending watchdog.
- The funds are labeled as a loan, but no repayment schedule exists.
- Spending may reach £615 million by June and could exceed £1.5 billion by 2028.
- Before government intervention, British Steel's previous owner, Jingye, considered closing due to financial losses.
- The government passed emergency legislation enabling it to keep the blast furnaces operational.
