The UK government is preparing to appoint prominent bankers to examine the future of Britain's crucial steel industry, Sky News can reveal.
Bankers Brought In for Strategic Review
Ministers are close to hiring Evercore, the independent investment bank that now employs former chancellor George Osborne, to conduct a comprehensive strategic review of the embattled steel sector. The appointment is expected to be confirmed within weeks, with Evercore reporting its findings directly to Business Secretary Peter Kyle and UK Government Investments (UKGI).
This move comes as the government maintains significant financial exposure to Britain's three largest steel producers. The review will examine various options for the industry's future, including potential mergers between major players to preserve the UK's steelmaking capacity.
Government's Growing Steel Industry Involvement
The state's involvement in the steel sector has deepened substantially in recent months. In April, the government seized control of British Steel after its Chinese owner, Jingye Group, threatened to close the UK's last remaining blast furnaces at its Scunthorpe plant.
This intervention sparked a diplomatic dispute with Beijing and has so far cost taxpayers £235 million, in addition to a previous £600 million bill from 2019-2020 when the company faced insolvency under previous ownership.
Meanwhile, the government agreed to provide £500 million in grant funding to Tata Steel for installing an electric arc furnace at its Port Talbot facility in Wales, though this move has faced strong opposition from trade unions concerned about thousands of resulting job losses.
Broader Industry Challenges and Future Vision
Britain's third-largest steelmaker, Speciality Steels UK (SSUK), is also effectively under government control after being placed into compulsory liquidation during the summer. The business, which employs approximately 1,500 people, was described by a judge as "hopelessly insolvent" and is now being auctioned.
Industry Minister Chris McDonald recently told Parliament: "We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel. Our long-term aspiration for the company will require co-investment with the private sector to enable modernisation and decarbonisation, safeguard taxpayers' money and retain steelmaking in Scunthorpe."
The Department for Business and Trade confirmed that the government will outline its long-term vision for the sector in an upcoming Steel Strategy, expected to be published either next month or early in the new year.
