Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what contingency provision they have made in the event that losses at British Steel’s Scunthorpe steelworks materially exceed current forecasts.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to ensure value for money for taxpayers while they remain in operational control of a loss-making steel producer.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
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 to publish a full breakdown of working capital support provided to British Steel, including expenditure on wages, raw materials for steel production, debt servicing, and supplier payments.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
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 estimated cost per job currently being supported through public funding of British Steel.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
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 (1) the risk that intervention in British Steel establishes a precedent in UK company law, and (2) the implications of any such precedent for future inward investment into strategically important manufacturing sectors.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Steel is strategically important to the UK’s industrial base, the delivery of the Industrial Strategy and the maintenance of critical infrastructure. In April 2025, the Government we intervened introduced the Steel Industry (Special Measures) Act to avoid the premature and disorderly closure of the blast furnaces at British Steel and ensure uninterrupted steel production. The Act is a temporary measure to ensure that critical steel facilities remain operational. The passing of the Act, and use in relation to British Steel, does not itself establish any sort of precedent in UK company law. We continue to work with Jingye, the owner, to find a pragmatic and realistic solution to the future of British Steel.
The published impact assessment for the Special Measures Act considered the potential impact on the wider business community. It highlighted the exceptional nature of the intervention, which should limit any wider effect on investment. To date, DBT has provided approximately £370 million to British Steel, of this, £57 million (15%) was used for payroll costs, £104 million (28%) for other operational expenses, and £209 million (57%) for raw material purchases. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.
The Government keeps British Steel’s financial position under constant review to protect taxpayers’ interests while ensuring continuity of safe and responsible operations. British Steel continues trading commercially and Government officials continue to provide on-site support in Scunthorpe monitoring, reviewing and scrutinising the use of taxpayer funds with robust financial governance in place.
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 approved a financial ceiling for public support to British Steel and, if so, what it is.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Longer-term funding for British Steel is subject to agreement with HM Treasury once plans for the site are finalised and will be subject to further ministerial decisions. We continue to work with Jingye to find a pragmatic, realistic solution for the future of BSL. In the interim, as a public corporation, BSL continues trading commercially with the objective of minimising losses to the taxpayer. All support for BSL has been drawn from existing HMG budgets, with no additional borrowing required.
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 potential litigation relating to (1) asset valuation, (2) debt liability, or (3) interference with shareholder rights, in relation to British Steel.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government will always abide by our legal obligations and offer fair treatment to all businesses. This includes meeting our responsibilities under the Steel Industry (Special Measures) Act.
We are currently in close discussions with the owner of British Steel to agree a pragmatic and commercial solution to the current situation. We do not comment on the content of these live discussions.
Asked by: Lord Sharpe of Epsom (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what progress they have made in designing the compensation scheme required under section 7 of the Steel Industry (Special Measures) Act (2025) in relation to British Steel.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel. This will include provision for a compensation scheme upon the end of the intervention under the Act, should there be a claim that the intervention caused loss.
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 are considering revising the implementation timetable of the Employment Rights Bill.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
There will be several phases of delivery following Royal Assent of the Employment Rights Bill. For many measures, Government will consult on the detail of policy and implementation. As set out in the Implementation Roadmap, we will provide more detail on these policies and our timelines for implementation following consultation, with a clear commitment that we aim to work at pace to deliver these tangible benefits to millions of working people.
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 plan to ensure parity of treatment between metal recyclers and steel producers in relation to energy pricing and the proposed carbon border adjustment mechanism.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government has recently published a consultation on eligibility for the British Industrial Competitiveness Scheme which, from 2027, will lower electricity prices for businesses in manufacturing frontier industries and foundational industries in their supply chains. Support is also available through the British Industry Supercharger and the Energy Intensive Industries Compensation Scheme.
The Carbon Border Adjustment Mechanism (CBAM) will ensure that highly traded, carbon-intensive imported goods face a comparable carbon price to UK-produced equivalents. Imported scrap products, including those from aluminium, iron and steel, will remain outside CBAM scope due to their low carbon leakage risk.