Ministers pressed to block £1bn repayment to British Steel's Chinese former owner
Reform UK's Richard Tice says taxpayers should not reward Jingye for failed stewardship of the UK's last blast furnace site.
The government is facing calls to refuse repayment of nearly £1bn in loans owed to the Chinese former owners of British Steel after the company was taken into public ownership last month. Accounts filed last week show the Scunthorpe-based steelmaker owed just under £1bn to entities linked to Jingye Steel at the end of 2024, comprising roughly £500m to the parent group, $410m to two subsidiaries and £50m to Secure Trust Bank.
Business Secretary Jonathan Reynolds has not yet indicated whether the state will honour those debts. A government spokesperson said an independent valuer would determine what, if any, compensation is payable to Jingye, adding that the immediate priority is stabilising the business and protecting the 2,700 jobs that depend on the UK's last remaining blast furnace.
Political pressure mounts
Richard Tice, Reform UK's business spokesman, who supported the takeover, argued that the Chinese company should accept a full write-down. "Taxpayers should not be rewarding Jingye for their failed ownership of British Steel," he said. "They will already be saddled with billions of pounds worth of investment that will be needed to rebuild the blast furnaces." Tice, who is currently the subject of a parliamentary investigation, added that Jingye should "be grateful to get away so lightly" for leaving the public with the liabilities.
"After assessing the impact on our economy, critical national infrastructure, and national security, we concluded that public ownership was the best way to secure British Steel's future and protect the future of UK steel production."
What happens next
No compensation has been paid to date. A formal scheme for any payout is expected to be drafted later this year, with the independent valuation process likely to become a focal point for scrutiny. The government has already injected £555m into the operation since taking control, and ministers have signalled that decarbonisation, replacing the blast furnaces with electric arc technology, will require billions more in public and private capital over the coming decade.
The outcome will also feed into the broader debate over the UK's industrial strategy and the state's role in preserving critical manufacturing capacity. As the national debt surpasses £3 trillion, every large-scale intervention faces heightened scrutiny over value for money and long-term fiscal sustainability.
