Business Secretary Jonathan Reynolds is facing calls to refuse the repayment of almost £1bn in loans to the Chinese former owners of British Steel. The steelmaker was taken into public ownership in an emergency deal last month.
According to its 2024 accounts, British Steel owed just under £1bn to companies connected to its owner, Jingye Steel, before nationalisation. This figure includes approximately £500m owed to Jingye, with an additional $410m owed to subsidiaries Power Rich Resources and Herbei Jingye Cut Deal Co., and £50m to Secure Trust Bank.
Reform UK business spokesman Richard Tice, who supported the government's takeover plans, urged the government to "stand firm" on the debts. Tice stated, "Taxpayers should not be rewarding Jingye for their failed ownership of British Steel." He added that Jingye should be compelled to take a full write-down on their debt.
A government spokesperson said that public ownership was deemed the best way to secure British Steel's future. They confirmed that an independent valuer would determine what, if any, is payable to Jingye. The government's current focus is on stabilising the business and supporting UK steel production.
It is understood that no compensation has been paid, and a framework for any payout is expected to be drafted later this year.