UK signals it may block payout to British Steel owner

UK signals it may block payout to British Steel owner8 minutes agoShareSaveAdd as preferred on GooglePritti MistryEast Yorkshire and LincolnshireReutersEmergency legislation was passed in April 2025 to allow the government to save British SteelThe UK government has signalled it could limit or refuse compensation to the Chinese owner of British Steel as the company seeks reparation costs following a decision to nationalise the steelworks.Jingye Group said it began the process to seek compensation under a bilateral investment treaty (BIT). It previously claimed the Scunthorpe plant was losing £700,000 a day.Last month, the government announced British Steel would be nationalised after it took control of the business on 12 April 2025 to prevent the last two remaining blast furnaces from closing.The Department for Business and Trade (DBT) told the BBC any payout would be determined independently and only paid "if any, is payable".A BIT is an international agreement between two countries to protect investors' money in both territories.According to Reuters, Jingye said in a statement on its WeChat account: "Jingye has recently initiated consultation procedures under the bilateral investment treaty with the UK government."It hopes the UK government could fully safeguard the legitimate rights and interests of Jingye and other Chinese companies as well as global investors, the statement went on to say.Jingye bought British Steel, which employs 2,700 staff, in 2020. However, the company has since claimed the business was no longer financially sustainable.In a statement on Friday, a DBT spokesperson said it would "comply with our international obligations"."Revitalising our steel sector is a top priority for this country, and the Steel Industry Bill is the first step to securing our steelmaking capability which will allow us to secure the future of British Steel and explore possible options to modernise the industry," the spokespers...