Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the reasons why British Steel has not filed statutory accounts for the year ending 31 December 2024; what discussions they have had with (1) the company, (2) its directors, (3) Companies House, or (4) the Financial Reporting Council, about the delay; and when they expect those accounts to be filed.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the likelihood that British Steel will repay the government funding provided since 12 April 2025; and whether any impairment, write-off or provision has been (1) made, or (2) considered, in relation to that funding.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they have provided British Steel, its directors, auditors or creditors with any formal or informal assurance, comfort letter, guarantee, indemnity, undertaking or other indication of continuing financial support for the company; and if so, what is the (1) nature, (2) duration, and (3) legal basis, of that support.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what is the total amount of funding provided to British Steel since 12 April 2025; what proportion of that funding is classified as debt to the Crown; and whether any formal loan agreement, interest rate, repayment scheme, security or repayment trigger has been agreed.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether British Steel is currently trading on a going concern basis; and if so, whether trading on that basis relies on financial support from (1) HM Government, (2) Jingye, (3) another third party, or (4) a combination of those sources.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what arrangements are in place to enable the directors of British Steel to prepare and approve company accounts.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
To date, funding of £484m has been provided to British Steel Limited under the provisions of the Steel Industry (Special Measures) Act, and the full amount is recoverable as a debt due to the Crown, as set out in section 3(6) of the Act. There are no conditions attached save the requirement for the funds to be used in accordance with the purpose set out in legislation. All funding released to British Steel is reviewed and approved in advance. Recoverability of this debt is currently being assessed, and the resulting treatment will be reflected and published in the Department for Business and Trade's accounts for 2025-26.
HMG has set out its policy and operational intent to British Steel’s auditors under the Steel Industry (Special Measures) Act 2025. This does not constitute a financial guarantee, indemnity or underwriting of liabilities and reflects material already in the public domain.
British Steel remains owned by Jingye and HMG’s powers to intervene under the Steel Industry (Special Measures) Act 2025 are designed to maintain steelmaking and avoid a disorderly closure of the blast furnaces. We continue to work with Jingye to find a pragmatic and realistic solution for the future of British Steel.
The preparation and filing of statutory accounts are a matter for the company and its directors. The arrangements for preparing and approving company accounts are a matter for British Steel and its directors, in line with their statutory responsibilities.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, further to the Written Answer by Baroness Lloyd of Effra on 9 March (HL14773), what assessment they have made of whether the blast furnaces at Scunthorpe steelworks are critical national security assets.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what plans they have, if any, for decommissioning the blast furnaces at the Scunthorpe steelworks; and what estimate they have made of the cost of decommissioning.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how long they plan to fund the operation of the Scunthorpe steelworks; and what is the maximum budget for funding those steelworks.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government who is responsible for the publication of British Steel's statutory accounts for the year ending 31 December 2024.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has reviewed the role of the Scunthorpe steelworks in contributing to the UK's national security including critical national infrastructure. The Government maintains that securing the continued operation of British Steel's assets is a necessary investment in our national interests and wider economic resilience.
Funding for British Steel is subject to the usual government approval processes and ministerial decisions and the need for HMG support is kept under review. All efforts are being made to secure a viable future for the company. All support for British Steel has been drawn from existing HMG budgets.
British Steel remains in the ownership of Jingye and estimated costs should the blast furnaces need to be decommissioned is commercially sensitive information. We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel.
The £104 million detailed for other operational expenses will be reflected in the Department for Business and Trade's accounts for 2025-26. The accounts will be prepared on a basis consistent with government financial reporting standards.
British Steel are responsible for ensuring all tax liabilities and obligations pursuant to the UK Emissions Trading Scheme are met. Under the Companies Act 2006, the responsibility to produce accounts belongs to company directors.