NEWS
13/04/2019 19:27 BST

British Steel Seeks £100 Million Government Loan After Being Left Out Of EU Scheme

The EU has frozen UK-based companies from its carbon trading scheme until a Brexit deal is passed.

British Steel is seeking a £100 million Government loan after failure to pass a Brexit deal left it out of an EU-wide carbon trading scheme, according to reports.

The company is in talks with Whitehall about securing the funding, Sky News said.

British Steel is understood to be seeking the loan because of the EU’s decision to suspend usual permits for UK-based companies, under its carbon emissions trading system.

The EU is suspending the permits until a withdrawal deal has been ratified. 

The system allows industrial polluters to pay for the previous year’s emissions using carbon credits.

Firms can also trade in the permits, which gives the right to emit a tonne of carbon dioxide.

British Steel said in a statement: “We are discussing the impact of Brexit on our business with ministers and officials from the Department for Business, Energy and Industrial Strategy and they have been extremely responsive and supportive to date.”

British Steel sites and jobs are not in danger, according to a source.

A Business, Energy and Industrial Strategy Department spokesperson said: “As the business department, we are in regular conversation with a wide range of sectors and companies.”