MPs Say Government Lacks Credible Plan for British Steel

The UK government has no credible plan for making nationalized British Steel profitable, the Public Accounts Committee said in a report published Friday, according to BBC News. The committee also said the Department for Business, Innovation, Science and Trade (DBIST) could not provide clear figures for the total cost of taking the company into public ownership.

What did the Public Accounts Committee conclude?

The 26-page PAC report found DBIST had not set out how British Steel — which runs its main plant in Scunthorpe and has operations in Teesside — would become financially self-sustaining, BBC News reported. The report warned that without a long-term plan, costs and uncertainty for workers, industry and taxpayers would keep rising.

Without a credible long-term plan, uncertainty and costs for workers, industry and taxpayers will continue to increase.

The committee also flagged that the government's steel strategy remains vague on when its target of producing 50% of UK-used steel domestically would be met, and noted British Steel's 4,052 workers face continued uncertainty, per BBC News.

How much has nationalization cost so far?

The government's own cost estimates have shifted. It had projected the total price of nationalization would reach £642m by June 30 this year, but later revised that figure down to £555m, according to the BBC report. The PAC said ministers were unable to give MPs a clear, consistent accounting of the overall cost.

What is the timeline of British Steel's nationalization?

• April 2025: The government passed an emergency bill to take control of British Steel amid reports then-owner Jingye planned to shut down two blast furnaces in Scunthorpe.
• July 2025: The Steel Industry (Nationalisation) Bill became law, formally taking the company into public ownership.
• March 2026: The government published its steel strategy, setting an ambition for 50% of UK-used steel to be made domestically and confirming electric arc furnaces as the future of British steelmaking — a shift that has already cost jobs at plants including Port Talbot.
• July 2026: Britain cut the tariff-free import quota for steel by 51% and doubled import taxes above certain thresholds from 25% to 50%, aiming to stop the UK becoming what officials called a "global dumping ground."
• September 18, 2026: The Public Accounts Committee published its report criticizing the plan's credibility.

Could the new steel tariffs hurt UK businesses?

The PAC said the tariff changes carry risk for smaller manufacturers. Some firms told the committee they need steel types that cannot be sourced domestically but would still face the new tariffs on imports, BBC News reported. "There is a risk that businesses reliant on these products will face higher costs, which could result in smaller firms going out of business or companies moving production overseas," the report said. The committee called on the government to create a formal route for steel companies to raise concerns about the tariff regime.

How has the government responded?

A DBIST spokesperson told the BBC the department welcomed the report and would review its recommendations, adding that securing the long-term future of the UK steel sector "was in the national interest." The spokesperson said taxpayer value for money "remains a central consideration in our assessment of the future of the site," and pointed to the steel strategy as a plan to build "a sustainable, competitive and decarbonised steel sector for the years ahead."

The full PAC report and the BBC News account of the findings are available via BBC News.