{"id":160253,"date":"2026-03-16T13:02:32","date_gmt":"2026-03-16T13:02:32","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=160253"},"modified":"2026-03-16T13:32:53","modified_gmt":"2026-03-16T13:32:53","slug":"british-steel-intervention-cost-may-reach-1-5bn","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/british-steel-intervention-cost-may-reach-1-5bn\/160253\/","title":{"rendered":"British Steel intervention cost may reach \u00a31.5bn"},"content":{"rendered":"

Costs of the government\u2019s intervention, preventing the company\u2019s collapse, could reach a long-term cost of \u00a31.5bn by 2028<\/h2>\n

The British Steel intervention bill was passed in April 2025<\/a>, and essentially put the failing company under government control.<\/p>\n

The company was set to fall under Jingye’s leadership, as it was losing around \u00a3700,000 per day. A new National Audit Office (NAO) report has examined the saving act and its consequences, with warnings for the future.<\/p>\n

The company was saved from collapse<\/h3>\n

British Steel was and is considered important for the British economy and industry, as their Scunthorpe site has the last operational blast furnaces in the UK. From 2023-2025, the government and Jingye were in negotiations to convert the Scunthorpe site\u2019s blast furnaces into more effective and efficient Electric Arc Furnaces.<\/p>\n

Despite being offered \u00a3500m, Jingye refused the offer and instead consulted on closing the blast furnaces, prompting the government to intervene and prevent the ending of UK steel production.<\/p>\n

By January of this year, the costs of this move had reached \u00a3377m and are expected to exceed \u00a3642m by June. This money is being spent on raw materials, energy, payroll, and \u00a315m has been spent on advisers.<\/p>\n

The future of British Steel<\/a> is more stable, but not certain<\/h3>\n

At the current rate, and with no decisions that change these costs, the amount is expected to reach or exceed \u00a31.5bn by 2028.<\/p>\n

Steel production has remained below targets due to old, neglected equipment, and several health and safety risks on site remain unaddressed.<\/p>\n

The NAO report supports the decision to intervene, as British Steel is vital to industry; supplying 80% of Network Rail\u2019s steel requirements, for example, and supporting 10,000 jobs, but encourages the government to act quickly to get the company back on its feet and acting independently in a sustainable manner, both in environmental and business terms. This includes bringing in partners from the private sector, transitioning to electric arc furnaces, transferring ownership, or restructuring the company.<\/p>\n

Gareth Davies, head of the National Audit Office, said: \u201cDBT was able to act quickly to save British Steel\u2019s Scunthorpe furnaces from closure, avoiding heavy job losses and serious impacts on major UK infrastructure and construction projects. However, the trade-off is the significant cost of maintaining operations, and uncertainty over how long this will continue.\u201d<\/p>\n

\u201cDBT should learn from this experience to be better prepared for future interventions.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The NAO has released a report showing that, by 2028, the government’s British Steel intervention may cost \u00a31.5bn or more.<\/p>\n","protected":false},"author":32,"featured_media":160254,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,276,32292],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-160253","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-government","10":"tag-steel"},"acf":[],"yoast_head":"\nBritish Steel intervention cost may reach \u00a31.5bn<\/title>\n<meta name=\"description\" content=\"The NAO has released a report showing that, by 2028, the government's 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