The Department for Business and Trade (DBT) quickly intervened to save British Steel’s Scunthorpe blast furnaces from closure, and has spent £377 million so far to keep the site operational with no budget set at the 2025 Spending Review, and no end date for the intervention a new report from the National Audit Office (NAO) has found.1  Jingye, the owner of British Steel, and DBT had been in talks around transitioning to electric arc furnaces between 2022 and 2025, but had not reached an agreement.2 In March 2025, Jingye announced that it was losing £700,000 per day due to challenging market conditions, tariffs, and high environmental costs, and it was considering the closure of the blast furnaces. This would have resulted in a large number of job losses at Scunthorpe and affected key customers in the supply chain, such as Network Rail.  In April 2025, DBT intervened after assessing that timescales were critical due to stocks of raw materials running low, and there was a risk of the blast furnaces being switched off. 3 Emergency legislation – the Steel Industry (Special Measures) Act 2025 – was passed to allow DBT to issue formal instructions to British Steel to continue operating its blast furnaces. DBT acted quickly to mobilise a team on site, secure raw materials and put governance arrangements in place.   DBT has so far spent £377 million to keep British Steel operating, including spending £15 million on advisers between 12 April 2025 and 31 January 2026, and £359 million to British Steel for operating activities such as paying for raw materials, payroll, and other operating costs. 4 Spending is expected to reach £615 million by June 2026. If spending continues at current rates, it could exceed £1.5 billion in 2028 depending on policy choices that may be taken in the future.  DBT has no repayment schedule in place, and it is not apparent that British Steel will be able to repay the loan. 5 DBT was not allocated funding for the intervention at the Spending Review and will have to make savings elsewhere to fund part of the intervention from its existing budgets for 2025-26.  DBT considers that the benefits of the intervention have been to ensure the continued and safe operation of the two blast furnaces at the Scunthorpe site, giving the department time to undertake a national security and economic assessment of the steel sector, and to retain primary steelmaking capability in the UK.   DBT has been in contact with the owner, with a view to finding a way through that meets the government’s aims of preserving steelmaking in Scunthorpe and enabling future discussions about investment. Longer-term, a transition plan for converting from blast to electric arc furnaces, and a wider transformation plan may be required to support the future viability of the business.  DBT has established the Steel Programme which covers on-site management at Scunthorpe and work on future steel policy. DBT plans to publish a steel strategy which is expected to outline measures to address sector-wide challenges and attract investment. 6 The government has also previously announced a £2.5 billion commitment to the steel industry. 7  Gareth Davies, head of the NAO, said:   “DBT was able to act quickly to save British Steel’s Scunthorpe furnaces from closure, avoiding heavy job losses and serious impacts on major UK infrastructure and construction projects. However, the trade-off is the significant cost of maintaining operations, and uncertainty over how long this will continue.” “DBT should learn from this experience to be better prepared for future interventions.” Building, Design & Construction Magazine | The Choice of Industry Professionals