MPs have claimed the government has no credible plan for the future of British Steel, according to a report by the Public Accounts Committee (PAC). The report, published today, stated that the Department for Business, Innovation, Science and Trade (DBIST) has not detailed how British Steel, which operates its main plant in Scunthorpe, will become profitable.
The PAC also warned that new steel tariffs could lead to businesses going out of business or moving production overseas. From July, Britain lowered the tariff-free quota for steel importers by 51% and doubled import taxes on steel above certain levels from 25% to 50%. Firms have expressed concerns that these tariffs affect essential steels not available for purchase in the UK.
The government's projected costs for the nationalisation of British Steel reached £555m by 30 June this year. The company was taken into public ownership in July last year, following an emergency bill passed in April last year amid reports that the then-owner Jingye planned to switch off blast furnaces.
A DBIST spokesperson welcomed the report and stated the department would review its recommendations, adding that securing the long-term future of the UK steel sector was in the national interest.