The UK government has spent £377 million ($503.43 million) over nine months to keep British Steel’s Scunthorpe site operational, according to a report by the UK’s National Audit Office (NAO).
The intervention, led by the Department for Business and Trade, was aimed at preventing the closure of the UK’s last remaining blast furnaces and avoiding major job losses and disruption to key industrial supply chains.
The NAO stated that the intervention was necessary to prevent an imminent and disorderly closure, which would have had significant economic consequences and impacted major customers such as infrastructure projects.
£1.3 million daily cost with no end date
Between April 12, 2025 and January 31, 2026, the government allocated £359 million ($479.41 million) for operational costs such as raw materials and wages, and £15 million ($20.03 million) for advisory services. Ongoing operations cost around £1.3 million ($1.74 million) per day, with no fixed budget, no repayment schedule, and no defined end date for the support.
The total support is classified as a loan, though the NAO noted that it is uncertain whether the funds will be repaid.
Costs could exceed £615 million and rise further
According to the report, spending is expected to reach £615 million ($821.36 million) by June 2026 if current conditions persist. The NAO also warned that, depending on future policy decisions, total costs could exceed £1.5 billion ($2 billion) by 2028 if the current rate of expenditure continues.
While acknowledging that the intervention helped preserve jobs and support key industries, the NAO emphasized the significant financial risks associated with the ongoing support.
The watchdog noted that the government acted quickly to stabilize operations, but warned that the cost of maintaining production remains high and uncertain, with no clear exit strategy currently in place.