Key facts
- British Steel owed nearly £1 billion to its Chinese former owner, Jingye Steel, and its subsidiaries.
- The UK government nationalized British Steel in July after lengthy talks.
- Reform UK spokesman Richard Tice urged the government to refuse the loan repayment.
- The government has already provided £555 million in funding to the steelmaker.
- An independent valuer will determine any payable compensation to Jingye.
Business Secretary Jonathan Reynolds has been advised against repaying nearly £1 billion in loans to the Chinese former owners of British Steel, which was nationalized earlier this year. According to British Steel's 2024 accounts, the company owed just under £1 billion to entities connected to its owner, Jingye Steel, before the government intervened.
Reform UK business spokesman Richard Tice has called on the government to "stand firm" and refuse the repayment, stating that taxpayers should not be rewarding Jingye for its "failed ownership." The debt comprises approximately £500 million owed to the parent group Jingye, $410 million to subsidiaries Power Rich Resources and Herbei Jingye Cut Deal Co., and £50 million to Secure Trust Bank.
The government has already provided £555 million in funding to the Scunthorpe-based business. The nationalization occurred in July after Parliament passed a bill, a move aimed at safeguarding over 2,700 jobs and securing the future of UK steel production. Tice further suggested that Jingye should be forced to write down its debt and be grateful for a lenient exit.
It is understood that no compensation has been paid to date, and a framework for any potential payout is expected to be drafted later this year. A government spokesperson stated that public ownership was deemed the best course of action after assessing the impact on the economy, critical national infrastructure, and national security. The focus is now on stabilizing the business and developing a sustainable steel sector.