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Taxpayer bill for saving Scunthorpe steel furnaces could top £1.5bn by 2028, auditor says
- The NAO warns the Scunthorpe rescue could exceed £1.5 billion by 2028 if costs stay at about £1.3m daily, highlighting long-term taxpayer exposure.
- The NAO says the intervention saved thousands of jobs and prevented a serious impact on UK industry, including rail supplier Network Rail.
- By January this year, the rescue had cost £377 million, with £15 million spent on advisers, according to the NAO.
- The report notes possible additional costs not included in the estimate, such as compensation to Jingye or investments for greener furnaces.
- The NAO urges the DBT to learn from the Scunthorpe experience to improve future interventions.
- The Guardian notes the £2.5 billion government package for the steel sector includes measures like lower energy bills and more UK-made steel use.
- Alasdair McDiarmid of the steelworkers’ union says government action was necessary to avoid catastrophic social and economic impacts.
- The NAO states the intervention protected thousands of jobs and UK industrial capability despite high ongoing costs.
- The report discusses the risk that the rescue could burden taxpayers beyond the stated £1.5 billion if current trends continue.
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