The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025.

The Government’s priority remains to maintain the safe operation of the blast furnaces at British Steel. Government officials are continuing to provide on-site support in Scunthorpe, ensuring uninterrupted domestic steel production and monitoring the use of taxpayer funds.

On funding, the position remains that all Government funding for British Steel will be drawn from existing budgets, within the spending envelope set out at Spring Statement 2025. To date, we have provided approximately £359 million for working capital, covering items such as raw materials and salaries. This will be reflected in the Department for Business and Trade’s accounts for 2025-26.

We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel. As we have stated previously, our long-term aspiration for the company will require co-investment with the private sector to enable modernisation and decarbonisation, safeguard taxpayers’ money and retain steelmaking in Scunthorpe. Once a solution is found, we will terminate the directions issued to British Steel under the Act and make a statement on the need to retain, or repeal, the legislation.

Impact Assessment relating to the Steel Industry (Special Measures) Act 2025

The Government has published the Impact Assessment (IA) relating to the Steel Industry (Special Measures) Act 2025. The Regulatory Policy Committee has rated the IA fit for purpose, with strong evidence supporting the rationale, options and justification.

The IA focuses on the rationale and impacts of the Act, namely providing optionality to address the risk that financially distressed owners could trigger unmanaged closures of major UK steel assets leading to irreversible loss of domestic steelmaking capability. The IA notes near‑term public finance implications and short‑term administrative burdens for British Steel with positive/neutral effects for wider supply chains. It highlights improved job security and regional stability in steel communities and a short‑term neutral environmental position that preserves decarbonisation options and avoids unmanaged site risks.

The IA is available online at https://www.gov.uk/government/publications/steel-industry-special-measures-bill-2025-final-impact-assessment

https://www.theyworkforyou.com/wms/?id=2026-01-22.hcws1266.0