Ministers have 'no credible plan' to turn round British Steel - as Labour's flagship nationalisation racks up losses of more than £500 million

See more Daily Mail on Google - save us as a Preferred Source Published: 19:01 EDT, 17 September 2026 | Updated: 19:01 EDT, 17 September 2026 Ministers have ‘no credible plan’ for reviving British Steel despite losses to the taxpayer topping £500 million, MPs have warned.In a damning report, the Commons public accounts committee said the government was ‘unable to articulate’ a business plan for the troubled firm, which was nationalised more than a year ago.The cross-party committee said the firm is losing £1.3 million a day, with more than £500 million of taxpayers’ money lost since the firm was taken into public ownership.Labour MP Clive Betts, deputy chairman of the committee, said the ‘startling levels of funding’ were not sustainable, given the need to support the wider steel sector.Mr Betts said the decision to nationalise the firm to prevent its closure was understandable given the importance of protecting ‘a critical part of our national infrastructure and security’.But he added: ‘Having brought British Steel onto the taxpayers’ books, it is now up the government to explain its plan for the future. Unfortunately, beyond simply propping up the company with public money, the government was not able to outline such a plan to our inquiry.‘The reality is that British Steel is unable to wash its face and government is now in charge of making sure it gets onto a sustainable footing.’ Burning through money: British Steel is costing the taxpayer £1.3 million a dayMinisters seized control of the firm’s Scunthorpe steelworks in April last year after talks with its Chinese owners Jingye collapsed. At the time, Jingye said the plant was losing £700,000 a day and was no longer sustainable.It was formally nationalised in July last year. At the time, Sir Keir Starmer said it was ‘in the national interest’.By the middle of June this year, the government had handed the firm £555 million to cover costs like raw materials and wages. But the committee said ministers were ‘unable to provide even indicative estimates’ of how much the final bill to the taxpayer might be, choosing instead to ‘continue to fund it without a clear end in sight’.The committee also warned that tariffs introduced to help protect the firm from foreign competition were now damaging other parts of the economy.In evidence to the committee, the government said it ‘may well be the case’ that the tariffs bankrupt some British engineering companies reliant on steel products that cannot be sourced in the UK.Mr Betts said MPs ‘expect to see no further complacency from government at small firms going out of business due to its steel tariff regime.’Despite the bleak picture, another Commons committee has called on ministers to take control of debt-laden Thames Water.A report by the Commons environment committee urges ministers to reject a £10 billion rescue deal by creditors, saying it does not have ‘the interests of the public, the company or the environment at heart’.The committee claims creditors want to ‘extract immediate value from Thames Water, not steer it to long-term success’.It urges ministers to put the company into a state-controlled ‘special administration’ regime.The Department for Business, Industry and Trade said nationalising British Steel was just the ‘first step’ towards securing its long ter future.A spokesman said: ‘Taxpayer value for money remains a central consideration in our assessment of the future of the site, and we are also backing the communities that rely on it through our steel strategy to build a sustainable, competitive and decarbonised steel sector for the years ahead.’