British Steel could get hit with a post-Brexit bill of over 100 million Pounds

by David Fleschen

British Steel may face a financial hit of £100m or more in three weeks’ time if Prime Minister Theresa May is unable to secure a Brexit deal, two people familiar with the matter said according to the South African newspaper Busine Day.

The costs relate to the private equity-owned steelmaker’s carbon pollution bill for 2018, which is due for payment by March 15, according to the people, who declined to be identified discussing a commercially sensitive matter. British Steel is the most prominent name on an official analysis detailing UK companies affected by an EU decision to freeze the allocation of free carbon permits that can be used to comply with the rules.

The steelmaker’s financial headache highlights the difficulties that Brexit uncertainty is causing British industry. British regional airline Flybmi went into administration last weekend, blaming Brexit and increased carbon costs. On Tuesday, Honda Motor said it would close its UK factory. While they did not publicly cite Brexit, executives of the Japanese carmaker had privately expressed concerns to government officials.

Source: Business Day, photo: fotolia

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