Taxpayer bill for saving Scunthorpe steel furnaces could top £1.5bn by 2028, auditor says

The Guardian - World NewsEN 2 min read 100% complete by Rob DaviesMarch 16, 2026 at 01:01 AM

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A National Audit Office report reveals that the UK government's intervention to save British Steel's Scunthorpe plant could cost taxpayers over £1.5 billion by 2028. The government took control in April 2023 after the Chinese owner threatened closure, a move that preserved jobs and maintained the UK's primary steel-making capability. While the intervention prevented significant damage to UK industry, the NAO warns of the high cost, already at £377 million, and potentially much higher due to operating costs, compensation, and future investments. The Department for Business and Trade (DBT) has provided a £377 million loan without a repayment schedule and may need to make savings elsewhere to cover costs. The NAO advises DBT to learn from this experience for future interventions in struggling industries.

Key Entities & Roles

Key Player Opposition Context

Community 30% Gareth Davies 40% Network Rail 40% Alasdair McDiarmid 40% United Kingdom ×370% Jingye ×270% Department for Business and Trade (DBT) ×470% National Audit Office (NAO) ×580% Scunthorpe ×280% British Steel ×590%

Keywords

steel industry 90% british steel 80% taxpayer bill 80% blast furnaces 70% scunthorpe 70% national audit office 60% government intervention 60% uk industry 50% public control 50% loss-making 40%