The United Kingdom government faces increasing pressure to withhold repayment of nearly £1 billion in loans owed by British Steel to its former Chinese owners following the company’s nationalisation earlier this year. The steelmaker, which was taken into public ownership under an emergency deal in July 2026, reported these outstanding debts in its 2024 financial accounts filed last week.

British Steel’s liabilities include approximately £500 million owed directly to Jingye Steel, its previous parent company. In addition, two Jingye subsidiaries—Power Rich Resources and Hebei Jingye Cut Deal Co.—are each owed around £410 million and £50 million respectively. Secure Trust Bank also holds a £50 million debt. The financial statements indicate that the firm is in need of significant additional capital to sustain its operations.

Since the government took control of the Scunthorpe-based steelworks, it has already injected £555 million into the business to support its survival and restructuring efforts. Earlier reports suggested that British Steel could cost taxpayers up to £900 million annually to maintain.

Reform UK business spokesperson Richard Tice, who had supported the initial government intervention, has called for the Business Secretary, Jonathan Reynolds, to refuse repayment of the outstanding loans. Tice argued that taxpayers should not be held accountable for debts linked to Jingye’s unsuccessful ownership of the firm, emphasizing the substantial public investment required to revive the steelworks’ blast furnaces.

The debate highlights ongoing disagreements over the future financial responsibilities connected to British Steel, as officials weigh the balance between safeguarding taxpayer funds and securing the company’s long-term viability after state intervention. The government has yet to publicly confirm its position regarding repayment of the loans owed to the Chinese entities.