During the passage of the Steel Industry (Nationalisation) Act 2026 the Government promised to provide regular updates to Parliament on British Steel.

In line with the Act’s provisions, British Steel entered public ownership on 16 July 2026.

This statement provides an update on the financial and operational performance of British Steel under public ownership and the company's governance and strategic direction.

Governance and Strategic Direction

In July 2026, Ministers appointed a new Board of Directors. This was followed by the appointment of Alan Lovell as Chair in September. Two further Board members are shareholder non-executive directors representing Government, one from the Department for Business, Innovation, Science & Trade and one from UK Government Investments.

Mr Lovell and the Board's immediate priorities include overseeing the stabilisation of British Steel, maintaining a strong focus on health and safety, and developing proposals for a commercially and environmentally sustainable future for the business. As set out in the Steel Strategy, securing the long-term future of Britain's steel capability and capacity will require both public and private investment.

The Chair, in consultation with the Department, is also looking to strengthen the Board and management team to ensure it has the capacity and capability to address the objectives. The Board is currently recruiting a Non-Executive Director to Chair its Audit, Risk & Assurance Committee. Further appointments are expected, and the Government will monitor progress closely.

Governance arrangements, including how the relationship between Government and British Steel will work in practice, will be set out in the British Steel Framework Document, in line with standard practice for Government-owned companies. The Framework Document will be published shortly.

Financial and Operational Performance

British Steel has continued to trade and operate across its sites, maintaining steel production and supplies to customers.

Since April 2025, the Government has provided £751 million in working capital support for British Steel. This funding has supported the continued operation of the business, including expenditure on raw materials and salaries.

The guarantees the Secretary of State gave to Npower Commercial Gas Limited and SEFE Energy Limited, to keep British Steel's energy supplies in place while the company was under the Steel Industry (Special Measures) Act 2025, are no longer needed now the company is in public ownership. The Department gave formal notice to both suppliers on 27 August 2026, and both guarantees ended on 10 September 2026, without being utilised.

British Steel has enhanced governance and accountability for its Safety Improvement Plan, with implementation ongoing for all 34 initiatives scheduled for year one. The Government and Board will continue to press for sustained improvements and ensure that health and safety remains at the heart of the company’s operational and transformation plans.

The Government welcomes the scrutiny provided by the Public Accounts Committee and is carefully considering its recommendations as part of ongoing work to ensure appropriate governance, transparency and value for money at British Steel.