British Steel losing £1.3m a day - and there is no 'credible' survival plan yet, MPs warn

The government must publish a "credible" plan for the future of British Steel, MPs have warned.

In a new report, the Public Accounts Committee (PAC) warns that the government has not yet set out concrete plans for how the company will become financially sustainable. It continues to cost £1.3m a day of UK taxpayers' money.

Using emergency legislation, the government intervened to prevent the closure of its blast furnaces in April 2025.

More than a year later, it could not set out what business model or decarbonisation pathway would put the company on a sustainable footing, the committee concluded.

As of March 2026, spending on British Steel was expected to reach £642m by 30 June 2026, including the cost of advisers.

The PAC report has demanded more action from the government..

Clive Betts MP, deputy chair of the Public Accounts Committee, said: "Government moved swiftly to save British Steel - all well and good, and our Committee of course welcomes this action as a means of safeguarding a critical part of our national infrastructure and security.

"But this was just the beginning. Having brought British Steel onto the taxpayers' books, it is now up to government to explain its plan for its future.

"Unfortunately, beyond simply propping up the company with public money, the government was not able to outline such a plan to our inquiry."

The PAC report also recommended the government set out a plan to reduce reliance on advisers; set future direction for the company, and remain involved given the importance for national and economic security.

The report also said that the Department for Business, Innovation, Science and Trade (BIST) was unable to explain how much of the government's £2.5bn commitment to the steel sector remains available once support for British Steel is taken into account.

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There is further uncertainty over the long-term future employment for British Steel's 4,052 employees, the report said.

The report touched on concerns regarding the government's new tariffs on imported steel, which it said came without "detailed information about which steel products can be sourced from the UK".

When asked by the PAC if the tariffs could put small firms out of business, the government said it was "afraid that may well be the case".

(c) Sky News 2026: British Steel losing £1.3m a day - and there is no 'credible' survival plan yet, MPs warn