The UK government has reaffirmed its commitment to supporting the local steelmaker British Steel under the Steel Industry (Special Measures) Act 2025, confirming ongoing financial backing, regular parliamentary oversight and a clear timeline for a national steel strategy.
British Steel under special measures
According to the Parliamentary Under-Secretary of State for Business and Trade Chris McDonald, a central priority remains the safe and continuous operation of British Steel’s blast furnaces. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production while overseeing the appropriate use of public funds.
Funding position and budget framework
The government confirmed that all funding for British Steel is being drawn from existing budgets. To date, approximately £274 million has been provided as working capital. This funding has covered:
- Procurement of raw materials
- Payment of employee salaries
- Settlement of unpaid bills, including amounts owed to SMEs within the supply chain
These expenditures will be recorded in the Department for Business and Trade’s accounts for the 2025-26 financial year.
UK steel strategy to be revealed in early 2026
The government reiterated its commitment to supporting the UK steel sector and confirmed that a national steel strategy will be published in early 2026. A robust trade policy will be a core pillar of the strategy, aimed at:
- Defending the domestic industry against unfair trade practices
- Developing new measures against global steel overcapacity
- Preparing for the expiry of UK steel safeguard measures in 2026
Ensuring balanced import levels while engaging with international partners