(1 day, 13 hours ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025. In addition to today’s statement, on 23 October my ministerial colleagues Baroness Lloyd of Effra and Baron Stockwood of Great Grimsby and Cleethorpes led a debate in the House of Lords entitled “Steel Industry (Special Measures) Act 2025”.
The Government’s priority remains to maintain the safe operation of the blast furnaces at British Steel. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production and monitoring the use of taxpayer funds.
On funding, the position remains that all Government funding for British Steel will be drawn from existing budgets, within the spending envelope set out at the spring statement 2025. To date, we have provided approximately £274 million for working capital, covering items such as raw materials and salaries, and addressing unpaid bills, including for small and medium-sized enterprises in the supply chain. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
I visited British Steel on 6 November to meet with the company’s UK management and trade unions. The visit was in the same week as the 50th anniversary of the Queen Victoria blast furnace disaster, which occurred in Scunthorpe in 1975, which British Steel employees and the local community commemorated on 4 November. The loss of life and the profound impact of that event on the local community remain a stark reminder of the critical importance of health and safety standards across all industrial operations. I laid a wreath at the memorial to the disaster in remembrance to those who had lost their lives.
Work continues to develop an impact assessment, which will be published in due course following Regulatory Policy Committee scrutiny. We are also continuing work on the introduction of a compensation scheme for steel undertakings in scope of the Act.
We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel. As we have stated previously, our long-term aspiration for the company will require co-investment with the private sector to enable modernisation and decarbonisation, to safeguard taxpayers’ money and to retain steelmaking in Scunthorpe. Once a solution is found, we will terminate the directions issued to British Steel under the Steel Industry (Special Measures) Act 2025 and make a statement on the need to retain, or repeal, the legislation.
[HCWS1030]