"The industry minister, Chris McDonald, said the government had paid for working capital, covering items such as raw materials, salaries, and addressing unpaid bills, including for SMEs (small and medium-sized enterprises) in the supply chain, in a written statement to parliament published this week. The latest costs add to the 604m spent on keeping the Scunthorpe plant going in 2019 and 2020, when it collapsed into insolvency under its previous owners, the private equity fund Greybull Capital."
"This investment in our steel communities is exactly what taxpayers' money should be used for. Under the previous government, 500m was given to Tata to make more than 2,000 people redundant. The people of Port Talbot will not forget. In contrast, British Steel has taken on more than 50 apprentices this year, supported a further 180 people into employment and has continued to produce world-beating steel. This is clearly money well spent."
The cost of taking control of British Steel has risen to £235m as the government covers losses and working capital to protect 3,500 jobs. Emergency legislation in April enabled the takeover amid fears Jingye Steel might abandon the Scunthorpe works. Government payments included raw materials, salaries and settling unpaid bills for SMEs in the supply chain. These costs add to £604m spent to keep the plant running in 2019–2020 after insolvency under Greybull Capital, and follow Jingye's 2020 purchase and claims that the operation lost £700,000 a day due to a global glut.
Read at www.theguardian.com
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