Mar 16, 2026

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

a steel worker at the furnace
Blast furnaces at Scunthorpe are costing £1.3m a day to run, the NAO says. Photograph: Darren Staples/PA
Blast furnaces at Scunthorpe are costing £1.3m a day to run, the NAO says. Photograph: Darren Staples/PA

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

National Audit Office highlights benefits of state rescue for jobs and orders but warns of continuing high cost

The cost of keeping the UK’s last remaining blast furnaces going at British Steel’s Scunthorpe plant could exceed £1.5bn by 2028 if it continues at its current rate, according to the government’s spending watchdog.

Ministers took the plant into public control in April last year, after its Chinese owner – industrial firm Jingye – threatened to shut down the loss-making site.

The National Audit Office (NAO), which monitors state spending, said the intervention saved thousands of jobs at Scunthorpe and prevented a “serious impact” on UK industry, including Network Rail, which buys steel for the railways from the plant.

Shutting the plant would also have ended Britain’s “primary” steel-making ability because blast furnaces allow steel to be made from scratch, rather than relying on scrap metal.

While the NAO’s report highlighted the benefits of the intervention, it warned about the high cost of the rescue package, which had reached £377m by the end of January this year, including £15m spent on advisers.

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