The UK Government has reaffirmed its commitment to support local steel producer British Steel through the Steel Industry (Special Measures) Act 2025, confirming continued financial support, regular parliamentary oversight and a clear timeline for the implementation of the national steel strategy.
Special measures have been taken against British Steel
Chris McDonald, Parliamentary Undersecretary of State for Business and Trade, said the safe and uninterrupted operation of British Steel's blast furnaces remains a top priority. Government officials continue to provide on-site support in Scunthorpe, ensuring uninterrupted steel production in the country and monitoring the proper use of public funds.
Financing situation and budget structure
The government has confirmed that all funding for British Steel is provided from existing budgets. To date, about 274 million pounds have been allocated as working capital. This funding covers:
- Purchase of raw materials
- Payment of salaries to employees
- Payment of unpaid bills, including amounts owed to small and medium-sized enterprises within the supply chain. These expenses will be reflected in the accounts of the Department of Entrepreneurship and Trade for the 2025-26 fiscal year.
The UK's steel production strategy will be unveiled in early 2026.
The government has reaffirmed its commitment to support the UK steel sector and confirmed that the national steel strategy will be published in early 2026. An effective trade policy will be a key element of the strategy aimed at:
- Protection of domestic industry from unfair trade practices
- Developing new measures against global steel capacity oversupply
- Preparing for the expiration of the UK's protective measures against steel in 2026 to ensure a balanced level of imports in cooperation with international partners
Author: SteelOrbis Editorial Team
Steelorbis.com
