Since April 2025, in accordance with the Law on Steel Industry of 2025, the British government directly finances British steel to maintain work at the SCUNTHORPE factory. The intervention followed the warning of the Chinese owner of the Jingye Group about heavy losses and the possible closure of explosive stoves.
Parliamentary written statements confirm that the government allocated about 180 million pounds for British steel:
- the appropriate Capital .
- The debts of the supplier and the SPAN>
The government claims that the intervention of 180 million pounds is a strategic necessity that ensures the safety of supply, while the UK is developing a longer steel strategy.
. The Department for Business and Trade noted that this figure will be reflected in its 2025-26. Officials emphasized that these expenses are reimbursed from British steel as a debt obligation.
why the costs were needed
British steel is the last operator of the UK, which produces the "virgin" steel necessary for the critical infrastructure, necessary renewable energy projects and defense. Without intervention, 2700 jobs were at risk, and Great Britain would become the only country of the G7 without the main steel performance.. Further,
the full strategy of steel became expected later this year, setting investment priorities and decarbonization plans. Meanwhile, negotiations continue with Jingye Group about the long -term ownership of the company.
at the end of March British Steel began the process of closing two explosive stoves at the Scunthorpe plant, following the Jingye refusal of 500 million pounds of sterling proposed by the Government. Great Britain, like . However, in April the Great Britain government took control of the of British steel to prevent the closure of two explosive furnaces at his Skuntorpa factory.
