The UK government’s expenditure on supporting British Steel is approaching £200 million

The funds are being used to cover raw materials, salaries, and the company's debts

The UK government’s spending on supporting steel producer British Steel has already reached £200 million ($270.4 million), which is almost double the amount of working capital provided since the company was nationalized in April this year. This was reported by Kallanish, citing a government briefing on the implementation of the Steel Industry (Special Measures) Act 2025.

The government has committed to reporting to Parliament on the state of affairs at the company every four plenary weeks during the period of special measures. According to a written statement in September, the cost to taxpayers was £180 million. The funds were used to finance working capital, including the purchase of raw materials, payment of wages, and repayment of debts to suppliers, including small and medium-sized businesses.

It has also been confirmed that government representatives continue to provide direct support on site. At the same time, details of the full costs will be published in the Ministry of Business and Trade’s annual reports for the 2025/2026 financial year.

Former Industry Minister Sarah Jones stressed that a broader discussion of the law’s work in parliament should take place within six months. Debates in the House of Lords on the Steel Industry (Special Measures) Act 2025 are scheduled for October 23.

Back in May, it was reported that the amount of state support was approaching £100 million, in particular to ensure the supply of raw materials. Then-Business and Trade Minister Jonathan Reynolds said that £2.5 billion from the National Welfare Fund for the steel sector would also help the government in its current intervention at the Scunthorpe plant. At the same time, the government emphasizes that the law is not limited to British Steel, but may also apply to other strategic enterprises in the industry.

It should be recalled that the British government and Jingye Group continue to dispute British Steel. Jingye remains the official owner of British Steel after the government refused to fully nationalize the loss-making company, which ministers believe is effectively worthless.