British Steel faces rising costs as ministers urged to provide long-term plan

The UK government's Public Accounts Committee has urged ministers to present a credible long-term plan for British Steel following warnings of rising costs. The manufacturer was taken into public ownership in July to protect steel production and prevent the loss of 4,000 jobs at the Scunthorpe steelworks.

Maintaining operations is currently costing approximately £1.3 million per day, with total expenditures projected to reach as much as £1.5 billion by 2028. By mid-June, the government had already spent £555 million on raw materials and worker salaries, excluding advisory fees.

Committee deputy chair Clive Betts noted that while saving the company was a necessary step, the government has yet to articulate a sustainable business model. The committee expressed concern that the Department for Business and Trade has not provided indicative estimates regarding the total long-term cost to taxpayers or the duration of the required support.