Commons Sense

House of Commons · Ministerial Statement

Speciality Steel UK Insolvency 2025-09-02

02 September 2025 · 23 other contributors

Opened by The Minister for Industry Sarah Jones

EconomyEmploymentBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

The Minister for Industry raised concerns about speciality steel uk insolvency 2025-09-02 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Speciality Steel UK Ltd, part of the Liberty Steel Group, has entered liquidation following a High Court order.
  • The Government is working with trade unions and local authorities to support affected steelworkers and communities.
  • No specific asks of the government or commitments made are recorded in the debate.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

The Minister for Industry

Today I would like to make a statement regarding the insolvency of Speciality Steel UK Ltd, part of the Liberty Steel Group. Hon. Members will have seen that the High Court granted a compulsory winding-up order against Liberty Speciality Steels on August 21st, and the company has now entered liquidation. The Government stands with affected steelworkers in Rotherham, Sheffield, and Wednesbury, their families, and communities. We are working with trade unions, the South Yorkshire Mayor, councils, and hon. Members from affected constituencies to offer all possible support. There will be no immediate changes to the current operation of the business or employees' jobs. Following the appointment of special managers, company sites have been secured, and employee payroll has been processed within 24 hours. The official receiver has been appointed as liquidator by the court; however, they operate independently from Government. Yesterday, I laid a departmental minute notifying the House of contingent liabilities associated with this intervention due to the liquidation during recess. Funding for the official receiver will stabilise operations and gather company information, reporting on likely next steps. The company has faced severe financial and operational difficulties since 2021, failing to file accounts for over six years leading to a prosecution by Companies House. The director is under investigation by the Serious Fraud Office for suspected fraud, fraudulent trading, and money laundering. Given these circumstances, it would have been inappropriate for the Government to enter commercial arrangements with the company. This situation contrasts with Scunthorpe's British Steel case, where maintaining blast furnaces was essential due to their unique nature and strategic importance. Liberty Speciality Steels' electric arc furnace technology can be powered up or down but has not operated since July last year. The Government will support the workforce through this period of uncertainty while pursuing every option to keep steelmaking in Rotherham, Sheffield, South Yorkshire, and the west midlands. We are pressing ahead with a bold steel strategy for the UK, set to be published later this year, focusing on decarbonisation and resilience. Major policy changes include reducing electricity costs for steel producers, changing Government procurement rules via a new public procurement notice, and strengthening current steel safeguard measures. Despite challenges from previous years of neglect, we believe that the industry will bounce back stronger.

Other contributors (23)
  • Gareth Davies Con Grantham and Bourne

    Question

    The shadow Minister asks about the lack of clarity on the bold steel strategy promised by the Government despite being in power for a year. He also questions when provisions lowering US tariffs on UK-produced steel will come into effect, as agreed upon by the Prime Minister and President Trump.

    Minister reply

    No specific answer provided in the given excerpt.

  • Gareth Davies Lab Constituency Unspecified

    Question

    What is the budget for the official receiver, and will the Government follow the investment allocation to assure operational independence?

    Minister reply

    The cost of the official receiver cannot be specified at this early stage as they have just begun their work. We are committed to ensuring that salaries are paid, which is necessary support for workers during a challenging time.

  • Liam Byrne Lab Birmingham Hodge Hill and Solihull North

    Question

    Will the Minister reassure the House on oversight of liabilities taken by the Department and clarify when lower energy costs will be implemented?

    Minister reply

    We are committed to reducing energy prices for steel companies through network charge relief, which could save up to £1.5 million annually for Liberty Steel based on past production rates. We aim to provide transparency regarding liabilities as soon as possible.

  • Sarah Olney Liberal Democrats Richmond Park

    Question

    What actions are the Government taking to ensure a sustainable future for steel production, avoid job losses, and press President Trump to drop tariffs?

    Minister reply

    We are prioritising procurement of British steel where possible, negotiating with US counterparts on steel tariffs, extending super-charger benefits, and developing an ambitious strategy to grow the industry sustainably.

  • Gavin Williamson Con Stone, Great Wyrley and Penkridge

    Question

    The Minister must assure the House that in a year's time, following the Government strategy, manufacturers will pay similar industrial energy prices as their German and French counterparts.

    Minister reply

    We are taking action to address high energy costs through expanding the super-charger scheme and introducing an electricity scheme in 2027 which will significantly reduce energy costs for around 7,000 companies across the country.

  • Marie Tidball Lab Penistone and Stocksbridge

    Question

    Will she take adequate time to find a responsible buyer with the right deal, and during that time will workers be kept in employment while efforts are made by her and the official receiver to resolve outstanding pension issues?

    Minister reply

    We will work closely with the official receiver to establish viable offers from interested companies. We recognise the importance of ensuring salaries continue to be paid and addressing pensions issues through ongoing investigations.

  • Andrew Snowden Con Fylde

    Question

    Will the Minister update me on her work with the Ministry of Defence to ensure that commercially operated industries critical for national defence capability are supported?

    Minister reply

    We have published sector plans, including one for defence which will come shortly. We have increased funding significantly and will procure UK jobs where possible.

  • Clive Betts Lab Sheffield South East

    Question

    May I ask her to be clearer about what “consideration” means in terms of public procurement? Will she assure us that when public procurement takes place, those wider considerations will come into effect?

    Minister reply

    Within legal parameters, we are ensuring that when we spend public money, we buy British. We recognise the value of this for jobs around the country and are pursuing a steel corridor strategy.

  • Chris Law SNP Dundee Central

    Question

    Why have this Labour Government never stood with the workers of Grangemouth?

    Minister reply

    We have invested £200 million through the National Wealth Fund and are supporting industry in Grangemouth to transition, providing significant support to workers who lose jobs.

  • Olivia Blake Lab Sheffield Hallam

    Question

    Can she reassure the House that workers’ wages and livelihoods will continue to be prioritised throughout the whole process?

    Minister reply

    We are protecting these sites because they have a vibrant and viable future. We will work closely with local authorities to support advanced manufacturing in the region.

  • Julian Lewis Con New Forest East

    Question

    Can she reassure the House that an ongoing investigation for suspected fraud, fraudulent trading, and money laundering will not hold up remedial steps?

    Minister reply

    The official receiver will establish what has happened through investigations. The Secretary of State has written to ask the Insolvency Service to pass over any information uncovered to the Serious Fraud Office.

  • Gill Furniss MP Sheffield Brightside and Hillsborough Lab

    Question

    Congratulates the Minister on supporting the steel industry, but asks for clarification on pension issues.

    Minister reply

    Recognises constituents' concern regarding pensions. The official receiver is investigating unpaid pensions to ensure clarity before taking any further actions.

  • Richard Tice MP Boston and Skegness Con

    Question

    Congratulates the Minister on supporting steel and suggests merging Speciality Steel with British Steel for a cohesive future.

    Minister reply

    Acknowledges the suggestion but notes it is a legal process. The official receiver must consider creditors' interests, but the Government remains committed to ensuring a viable future for the industry.

  • Jessica Morden MP Newport East Lab

    Question

    Asks about support for steelworks in Wales and their share of green steel funds.

    Minister reply

    Commits to supporting Llanwern and Welsh steelworks, with ongoing efforts to conclude negotiations on energy prices and procurement. The Government is investing £500 million in the sector.

  • Andrew Murrison MP South West Wiltshire Con

    Question

    Inquires about the impact of this announcement on UK steel usage for British warships, especially Type 26 frigate programme.

    Minister reply

    Navantia’s contract uses Liberty's steel from Dalzell plant in Scotland, unaffected by current announcements. The Government prioritises using British Steel where feasible.

  • Chris McDonald MP Stockton North Lab

    Question

    Acknowledges the Minister's support and asks if a review of all assets under government control is considered.

    Minister reply

    Committed to reviewing all assets, considering different types of involvement across regions. Government will continue supporting steel companies and integrating supply chains.

  • Llinos Medi MP Ynys Môn PC

    Question

    Asks why the Government is saving jobs in Yorkshire but not helping workers in Port Talbot.

    Minister reply

    Clarifies that one blast furnace had already closed prior to government intervention. Investing £500 million and supporting Port Talbot's electric arc furnace project.

  • Luke Myer MP Middlesbrough South and East Cleveland Lab

    Question

    Inquires about assurance that jobs in Liberty Pipes are unaffected by current situation.

    Minister reply

    Liberty Pipes is separate from the affected entities. It will continue its contract for carbon capture, usage, and storage project.

  • John Cooper MP Dumfries and Galloway Con

    Question

    Asks about Scottish Government's deal with Liberty Steel Dalzell.

    Minister reply

    Investigates the issue and commits to a 360° look at steel production across the UK, involving devolved Governments in the strategy.

  • Sammy Wilson MP East Antrim DUP

    Question

    Questions the impact of energy prices on attracting private investment.

    Minister reply

    Energy prices doubled under previous governments. The crisis at Liberty is unrelated to carbon pricing or energy costs. Extending industry super-charger will significantly reduce electricity costs for manufacturers.

  • Bradley Thomas MP Bromsgrove Con

    Question

    Asks the Minister to commit to lower energy costs in 12 months and rule out further national insurance increases.

    Minister reply

    Commits to reducing energy costs significantly through interventions. The Government is focused on lowering costs for UK manufacturers.

  • Jim Shannon DUP Strangford

    Question

    The hon. Gentleman thanked the Minister for her statement and mentioned that some 1,450 jobs are at risk in Northern Ireland due to uncertainties in the steel sector. He asked how the Government can provide certainty during these uncertain times.

    Minister reply

    The Minister acknowledged the importance of supporting not just key industries but also the supply chain. She highlighted her visit to Belfast where she met with Harland & Wolff, Spirit and discussed the future of Boeing at that site. The Minister assured that advanced manufacturing in Northern Ireland is being supported through various new technologies.

Shadow Comment

Gareth Davies

The shadow Minister criticises the Government for another day of takeovers in key British manufacturing plants with uncertain futures due to significant job losses and economic impacts. He accuses them of failing British industry by providing no certainty of policy or economic growth as promised during opposition. The Labour Government's lack of clarity on a bold steel strategy is highlighted, despite being in power for over a year. Davies emphasises the dual pressures facing the steel industry: new US tariffs and high energy costs due to decarbonisation policies that ignore underlying causes of expensive energy. He criticises the Energy Secretary for focusing on windmills while leaving Britain's oil and gas industry struggling. This is seen as economic illiteracy aimed at satisfying green obsessions, affecting various sectors like steel, chemicals, cars, builders, and makers across Britain. Questions remain regarding when provisions lowering US tariffs on UK-produced steel will come into effect.

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