Taxpayers Fund £671 million British Steel Losses as 50% Steel Tariffs Bite
Since April 2025, British Steel has consumed £671 million of public money, while Labour's 50% import tariff forces firms to pay steep premiums on foreign steel.
Lord Leong, Small Business and Enterprise Minister, revealed that British Steel has absorbed £671 million of taxpayer funds since April 2025, roughly £1.3 million per day. The Public Accounts Committee highlighted the absence of a credible sustainability plan, and John Redwood noted that the amount owed to previous owners is still undetermined. Labour ministers conceded that restoring the company may require five years or longer, and new rules exempt the firm from Freedom of Information requests and protect officials from being treated as shadow directors.
Since July, a 50% tariff on steel imports exceeding quarterly allowances has been applied, with the entire quota for Turkish structural tubes used on the first day of the new period. This has forced British firms to incur multi-million-pound expenses, passing higher costs down the supply chain to construction and infrastructure projects. The government also plans further nationalisations, including Speciality Steel, under the Steel Industry (Nationalisation) Act.
Why it matters
Taxpayer money is being spent twice—on a loss-making steel firm and on costly import tariffs that raise construction expenses.
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