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Departmental Contingent Liability Notification

27 November 2025

Proposing MP
Stockton North
Type
Written Ministerial Statement
Department
Department for Business and Trade

At a Glance

Issue Summary

Chris McDonald is informing members about a contingent liability guarantee for SEFE in support of British Steel Limited.

Action Requested

The Department for Business and Trade will enter into a guarantee to replace existing credit support, ensuring SEFE extends the supply contract with British Steel Limited on favourable terms. A Departmental Minute detailing this liability will be laid today.

Key Facts

  • The contingent liability is pursuant to the Steel Industry (Special Measures) Act 2025.
  • The value of the guarantee is equal to existing credit support and a policy requirement for SEFE.
  • Effective date: 31 March 2026.
  • Authority for expenditure will be sought through normal procedure.
  • Termination by Department requires 10 Business Days’ written notice to SEFE.
Assessment & feedback
Summary accuracy