Government urged to refuse £1bn British Steel repayment to Chinese former owner
Business secretary Jonathan Reynolds has been urged to refuse to pay back almost £1bn in loans to the Chinese former owners of British Steel after it was nationalised earlier this year. British Steel owed just under £1bn to companies connected to its owner Jingye Steel before it was taken into public ownership in an emergency [...]
Reform UK's Richard Tice has called on the government to refuse repaying nearly £1bn in loans to the Chinese former owners of British Steel, after the company was nationalised earlier this year. The steelmaker owed around £500m to Jingye Steel, the parent group, and £410m to two other Chinese companies. The accounts also revealed £50m owed to Secure Trust Bank.
The government's intervention came after a year of Labour's rule, after talks led to fears of British Steel's closure and loss of over 2,700 jobs. While the government provided £555m to the company, a compensation scheme is being drafted and an independent valuer will determine any payments to Jingye.
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