Labour Pressed to Present Viable Plan as British Steel Costs Surge to £1.5bn

The public accounts committee has pressed Labour to produce a credible roadmap for British Steel, whose nationalisation in July was intended to protect the Scunthorpe works and 4,000 jobs. The watchdog described the daily operating cost of £1.3 million as “startling” and warned that total spending could climb to as much as £1.5 billion by 2028. To date the government has disbursed £555 million for staff salaries and raw material purchases, not counting advisory fees.

Committee deputy chair Clive Betts criticised ministers for failing to articulate a viable business model or even give indicative cost estimates for taxpayers. The committee’s report calls for a detailed plan covering production options, decarbonisation pathways, financial sustainability, funding sources and timelines. The criticism follows Labour’s recent nationalisation of Speciality Steel UK in Yorkshire to safeguard 1,300 jobs, and comes as former owner Jingye pursues compensation of almost £1 billion under an international treaty, heightening tensions with China.