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.

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.

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.

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.

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.

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.