Whitehall sources have confirmed that the government is considering blocking a £1.73bn payout to the owners of British Steel, citing mounting national security concerns. The payment, linked to a controversial restructuring deal, has been under scrutiny for months.
Documents obtained by this newsroom reveal that the Treasury and the Department for Business and Trade have flagged the transaction as a potential threat to critical infrastructure, following intelligence reports of undisclosed foreign ownership links. The decision, expected within days, could trigger a political firestorm and destabilise the UK steel industry. Labour MPs are demanding a full parliamentary inquiry, while industry insiders warn of job losses if the payout is halted.
The move marks a significant escalation in the government's push to tighten oversight of foreign investment in key sectors. One senior official, speaking on condition of anonymity, said the payout was 'unacceptable' given the national security implications. The owners, a consortium including a little-known investment vehicle registered in the Channel Islands, have refused to comment.
This is a developing story.
