British Steel: Finance
The question
To ask the Secretary of State for Business and Trade, pursuant to the 2025–26 Supplementary Estimates, for what specific purpose the £375 million increase in Capital DEL for British Steel will be used; and whether that funding will take the form of loans, equity investment, guarantees or grants.
Answered by Chris McDonald
The additional £375 million Capital DEL allocated for British Steel Limited, as outlined in the Supplementary Estimates 2025-26, will be used to provide working capital and is recoverable as a debt owed to the Crown, specifically referenced in section 3(6) of the Steel Industry (Special Measures) Act. The sole stipulation for this funding is that it must be used strictly for the purposes established in the legislation. Each tranche of funding provided to British Steel undergoes thorough review and approval prior to release. As of today, approximately £370 million has been provided to British Steel Limited to support working capital needs, including expenses such as raw materials, staff salaries, and other operational costs.
This allocation will be fully accounted for in the Department for Business and Trade's accounts for the 2025-26 financial year.
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