£34m a month to keep British Steel alive as calls grow for long-term green future
Council Leader Rob Waltham says securing cleaner steel production is vital to protect jobs and the UK supply chain
The leader of North Lincolnshire Council says the future of British Steel in Scunthorpe is critical to protecting jobs and preventing the UK becoming reliant on overseas markets, as it emerges the Government is spending an average of £34 million a month keeping the plant running.
The Government took effective control of British Steel last April after emergency legislation was rushed through Parliament to prevent the closure of the blast furnaces.
Since then, ministers have committed £274 million to cover operational costs including raw materials, wages and energy.
Despite the intervention, uncertainty remains over the long-term future of the site, which is still owned by Chinese firm Jingye, with negotiations ongoing over ownership and investment.
Council leader Rob Waltham says securing steelmaking in Scunthorpe is about far more than one town.
“We’ve just got to keep those jobs, because if we don’t make British Steel, there are so many things in this country that will be left to the volatility of the market and overseas imports, and quality — all the things we know we value from having an industry not just in this town, but in this country as a whole,” he said.
Government figures show £173m of the funding has gone on raw materials, £47m on payroll and £22m on energy costs. Ministers say the money is recoverable as a debt to the Crown and is reviewed before being released.
Cllr Waltham says work is continuing with MPs and ministers, but warns the challenges facing the plant are not going away.
“A lot of this starts with the Government’s negotiation with Jingye. That’s challenging — they’re negotiating with an overseas business — but we’re working really closely with the MPs, and we won’t rest.”
Alongside protecting jobs, he says the future of British Steel must involve cleaner production.
“There’s an evolution needed in steelmaking so we keep the jobs, but also service the market people want — cleaner steel. That’s just a fact.”
The Government says a full Steel Strategy will be published in early 2026, setting out how it plans to modernise and decarbonise the industry while safeguarding jobs in Scunthorpe.