The UK government spent £377 million ($503.43 million) over nine months to keep British Steel's Scunthorpe plant running, according to a report by the UK National Audit Office (NAO).
The intervention, led by the Department for Business and Trade, was aimed at preventing the closure of the UK's last remaining blast furnaces and preventing major job losses and disruptions in key industries supplies.
NAO said the intervention was necessary to prevent an imminent and disorderly closure that would have significant economic consequences and impact on large customers such as infrastructure projects.
Daily costs of £1.3 million with no end date
Between 12 April 2025 and 31 January By 2026, the government has allocated £359 million. (US$479.41 million) for operating expenses such as raw materials and wages, and ₹15 million (US$20.03 million) for advisory services. Ongoing operations cost approximately £1.3 million ($1.74 million) per day, with no fixed budget, repayment schedule and specific end date for support.
The overall support is classified as a loan, although the NAO noted that it is unclear whether the funds will be repaid.
Costs could exceed £615 million and rise more
According to the report, costs are expected to reach £615 million ($821.36 million) by June 2026 if current conditions continue. The NAO also warned that, depending on future policy decisions, total costs could exceed £1.5 billion ($2 billion) by 2028 if current levels of spending continue.
While acknowledging that the intervention had helped save jobs and support key industries, the NAO highlighted the significant financial risks associated with continued support.
The watchdog noted that the government had taken swift action to stabilization of operations, but cautioned that the cost of maintaining production remains high and uncertain, with no clear exit strategy currently in place.
