Find a credible plan for British Steel, ministers told as ‘startling’ costs soar

Подробности

British Steel was taken into public ownership in July. Photograph: Darren Staples/Reuters View image in fullscreen British Steel was taken into public ownership in July. Photograph: Darren Staples/Reuters British Steel Find a credible plan for British Steel, ministers told as ‘startling’ costs soar Government spending watchdog warns of price of keeping publicly owned firm in business

Prefer the Guardian on Google Labour has been urged to lay out a credible plan for the future of British Steel , as the government spending watchdog warned of the “startling” costs of keeping the struggling manufacturer in business with no end in sight.

British Steel was taken into public ownership in July to protect “the future of steel production”, 15 months after the government stepped in to prevent the closure of its steelworks in Scunthorpe and the loss of 4,000 jobs.

But it is costing £1.3m a day to keep the company running, with the total estimated cost reaching as much as £1.5bn by 2028. By mid-June, the government had spent £555m paying workers’ salaries and buying raw materials, excluding the cost of external advisers.

The public accounts committee of MPs said on Friday that ministers were still “unable to articulate what business model” would put the company on a sustainable footing, nearly a year and a half after taking control at Scunthorpe.