I am sorry about your disappointment Speedy Builder, but (and here I'm assuming you are in Britain) it's a pity you did not obtain a copy of the MELG boiler-test booklet right at the start.
For that scheme specifically excludes "stainless-steel" for boilers. I don't think it states a reason, just a blanket ban
I would advise anyone making a miniature steam boiler to buy a copy, even if buying a commercially-made copper boiler to a published design. Or at least, if in a model-engineering society, the club should have a copy for members' use. .
If you had asked a commercial rather than club boiler-inspector he would probably have insisted on being sure of the grade of steel.
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Fundamentally there is no reason not to use stainless-steel for boilers, but it would have to be of one of the correct alloys because stainless-steel comes in very many flavours of three primary groups. They are so varied to suit different classes of application and different fabrication methods – including pressure-vessels for very critical uses indeed.
Yes, our Australian and New Zealand, and I think Dutch, colleagues have found stainless-steel alloys suitable for small boilers; but our insurers are still too nervous about it.