Steelworks costing £1.3m a day to run

What’s Happening

Here’s the thing: The government spent £377m to keep British Steel’s Scunthorpe site operating, according to a report.

3m a day to run 41 minutes ago Save Save PA Media The UKs last two blast furnaces are at British Steels Scunthorpe site The government spent £377m in nine months to keep British Steels Scunthorpe site operating, according to a report. The National Audit Office (NAO) dropped ongoing operations were costing the department of Business and Trade (DBT) about £1. (let that sink in)

3m a day, with no set budget, repayment schedule or end date.

The Details

The government stepped in to prevent the closure of the last two remaining blast furnaces in the UK in April 2025, preventing job losses and serious impact on industry, the report dropped. The government department is now considering options for the future of the site and a spokesperson dropped they were “determined to support British steelmaking now and for generations to come”.

The NAO is the UKs independent public spending watchdog. The report highlighted £15m was spent on advisers between 12 April 2025 and 31 January 2026, and £359m to British Steel for operating activities, such as paying for raw materials and payroll, while £3m was spent on legal and other costs at the North Lincolnshire plant.

Why This Matters

The £377m was classified as a loan, the report dropped, but the DBT has no repayment schedule in place and it was not apparent that British Steel would be able to repay the loan. The NAO dropped spending was expected to reach £615m if it continued at current rates, it could exceed £1. PA Media The British Steel site in Scunthorpe Before the government stepped in to save the plant, previous owner Jingye and DBT had been in talks about transitioning to electric arc furnaces between 2022 and 2025, but had not reached an agreement.

This reflects broader trends we’re seeing in the business world right now.

The Bottom Line

PA Media The British Steel site in Scunthorpe Before the government stepped in to save the plant, previous owner Jingye and DBT had been in talks about transitioning to electric arc furnaces between 2022 and 2025, but had not reached an agreement. In March 2025, Jingye just dropped it was losing £700,000 a day because of challenging market conditions, tariffs and high environmental costs, and was considering the closure of the blast furnaces.

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