British Steel plan lacks credibility, MPs say

The government has no credible plan for the future of British Steel, MPs have claimed.

A report by the Public Accounts Committee (PAC) said the Department for Business, Innovation, Science and Trade (DBIST) had not set out how British Steel, which runs its main plant in Scunthorpe and has operations in Teeside, would become profitable.

MPs warned steel tariffs could drive firms out of business or to move abroad.

A spokesperson for DBIST said it welcomed the report and would review the recommendations, adding securing the long-term future of the UK steel sector "was in the national interest".

A 26-page report , external , published on Friday, said the government was unable to provide clear estimates of how much the overall nationalisation could cost.

It had projected costs to reach £642m by 30 June this year, but the government later said it had only been £555m.

In April last year, the government passed an emergency bill to take control of British Steel amid reports the then-owner Jingye was planning to switch off two blast furnaces in Scunthorpe.

The Steel Industry (Nationalisation) Bill became law in July, taking the company into public ownership .