Watchdog Urges Government to Set Out Credible Plan for British Steel as Costs Mount

The UK government has been urged to produce a credible long-term plan for British Steel after the public spending watchdog warned of the “startling” costs of keeping the state-owned manufacturer in business, according to the Guardian.

British Steel was taken into public ownership in July to protect “the future of steel production” in the country, 15 months after ministers first intervened to prevent the closure of its Scunthorpe steelworks and the loss of around 4,000 jobs, the report said.

The government spending watchdog raised concerns about the ongoing financial burden of supporting the company, noting that there is currently no clear end date for the costs involved, the Guardian reported.

Members of parliament have called on the Labour government to lay out a detailed and credible strategy for the future of the business, including how it intends to manage costs and secure the long-term viability of steel production at the site.

The intervention comes amid wider scrutiny of how the government manages nationalised industries and the financial commitments associated with such ownership, according to the report.

The Guardian did not specify further details on the exact figures cited by the watchdog or the timeline for a government response in the excerpt reviewed.