British Steel takeover cost reaches £235m as concern grows over EU tariff threat

The cost of taking control of British Steel has risen to £235m, the UK government has said, as it acknowledged concern over the threat of European Union tariffs that could significantly harm the business.

- Jasper Jolly

The government passed emergency legislation in April to take control of British Steel amid fears that its Chinese owners, Jingye, were planning to walk away from its Scunthorpe steelworks.

Taking control preserved 3,500 jobs at British Steel but it has left the government to foot the bill for the loss-making company. The industry minister, Chris McDonald, said the government had paid for “working capital, covering items such as raw materials, salaries, and addressing unpaid bills”, in a written statement to parliament published this week.