UK Taxpayers Pay £1.3 Million Daily for British Steel

The Public Accounts Committee warned that maintaining the nationalized British Steel is costing taxpayers £1.3 million per day, with total expenditures projected to reach £1.5 billion by 2028. By mid-June, the government had already spent £555 million on raw materials and salaries. The committee criticized the Department for Business and Trade for failing to provide a sustainable financial plan or indicative total cost estimates.

These costs follow a July decision by the government to take the manufacturer into public ownership to protect 4,000 jobs in Scunthorpe. The government also nationalized Speciality Steel UK to save an additional 1,300 jobs. Business Secretary Jonathan Reynolds defended the move as a necessary step to safeguard the nation's heavy industry.

The nationalization has triggered a diplomatic and legal conflict. The former owner, Jingye, has initiated a formal international treaty process to seek nearly £1 billion in compensation. This action has led the Government of China to express strong dissatisfaction, further straining relations between the United Kingdom and China.