The UK Government has reaffirmed its commitment to support the local steel company British Steel in accordance with the Steel Industry (Special Measures) Act 2025, confirming continued financial support, regular parliamentary oversight and clear deadlines for the implementation of the national steel strategy.
British Steel under special measures
Chris McDonald, Parliamentary Under Secretary of State for Business and Trade, said the safe and continuous operation of British Steel's blast furnaces remains a central priority. Government officials continue to provide support on the ground in Scunthorpe, ensuring uninterrupted domestic steel production while overseeing the proper use of public funds.
Financing situation and budget structure
The government has confirmed that all funding for British Steel is provided from existing budgets. To date, about 274 million pounds have been provided as working capital. This funding covered:
- Purchase of raw materials
- Payment of salaries to employees
- Settlement of unpaid bills, including amounts owed to SMEs in the supply chain
These expenses will be reflected in the accounts of the Ministry of Business and Trade for 2025-2026. fiscal year.
The strategy of the UK steel industry will be unveiled in early 2026
The government has reaffirmed its commitment to support the UK steel sector and confirmed that the national strategy for the steel industry will be published in early 2026. A sound trade policy will be a key element of the strategy aimed at:
- Protection of domestic industry from unfair trade practices
- Developing new measures against global excess steel production
- Preparations for the termination of UK steel protection measures in 2026
Ensuring a balanced level of imports in cooperation with international partners
