Commons Sense

House of Commons · Ministerial Statement

British Steel

16 July 2026 · 17 other contributors

Opened by Blair McDougall Lab Constituency

EconomyEmploymentBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Blair McDougall raised concerns about british steel in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Minister expressed regret and apologies for the delay in laying regulations before Parliament.
  • The Secretary of State exercised powers to transfer British Steel into public ownership following Royal Assent of the Steel Industry (Nationalisation) Act 2026.
  • The decision to nationalise British Steel was taken after careful consideration due to significant commercial and diplomatic sensitivities.

How the debate unfolded

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

Government Statement

Blair McDougall

The Minister expressed regret and apologies for the delay in laying regulations before Parliament, stating that the decision to nationalise British Steel was necessary due to significant commercial and diplomatic sensitivities. Following Royal Assent of the Steel Industry (Nationalisation) Act 2026, the Secretary of State has exercised powers to transfer British Steel into public ownership. The minister noted that this decision was taken after careful consideration and is seen as a route to secure British Steel’s immediate future, maintain steelmaking in support of the UK's steel strategy, and protect jobs and communities. The minister acknowledged parliamentarians' constructive approach during passage of the Act.

Other contributors (17)
  • Joshua Reynolds Lib Dem

    Question

    Reynolds raised concerns about compensation for nationalisation, manufacturing capabilities, and the need for private co-investors to ensure that the taxpayer is not permanently responsible for British Steel.

    Minister reply

    The Minister confirmed discussions with Jingye regarding compensation but noted no value-for-money solution. An independent valuer will assess any compensation due in autumn through regulations. The board will work on ways to support wider steel strategy objectives, including addressing issues of specialist grades of steel.

  • Luke Myer Con

    Question

    Myer thanked the Government for protecting primary steelmaking jobs and preserving industry. He asked about measures to address industrial energy costs.

    Minister reply

    The Minister acknowledged previous inaction by governments regarding steel communities. Various interventions through the supercharger, network charging compensation uplift, and British industrial competitiveness scheme have been made. The new board will focus on reducing costs, including investing in energy cost reduction.

  • Rebecca Paul Lab

    Question

    Paul questioned the approach of nationalisation as a solution to non-competitive steel industry and inquired about working capital provided, forecast taxpayer costs, discussions with potential buyers, state of blast furnaces, and expected site remediation cost.

    Minister reply

    The Minister addressed relations with China and stated that this decision was made in the UK's national interest. He mentioned significant resources available to encourage private sector co-investment. The Minister countered the idea of a 'year zero' approach by highlighting declining crude production over 10 years under previous governments.

  • Gareth Snell Lab Stoke-on-Trent Central

    Question

    We should not apologise for bold action to protect well-paid, unionised jobs and the reindustrialisation of our nation. Companies in my constituency need certain grades of steel that are currently unavailable domestically due to quotas and tariffs. Will the Government extend the range of domestic steel production?

    Minister reply

    The strategy aims to increase UK production, including for specialist steels. The board will address these issues.

  • Edward Leigh Con Gainsborough

    Question

    Concerned about jobs at Scunthorpe due to high energy costs and uneconomic blast furnaces. Suggests more grants to ensure competitiveness on world markets.

    Minister reply

    The intervention last year prevented 2,700 redundancies. The new strategy focuses on modernised technologies to improve competitiveness.

  • Christopher Bloore

    Question

    Congratulates the Minister and Government for nationalising British Steel. Manufacturers rely on it but want more grades of steel. How will workers be reassured?

    Minister reply

    Workers have been briefed this morning, and engagement with them is expected to continue deeply.

  • Martin Vickers Con Cleethorpes

    Question

    Surprised the Secretary of State is not here. Nationalisation as a short-term solution, but challenges remain regarding energy costs. How will private investment be attracted?

    Minister reply

    Partnership with the private sector includes resources from the National Wealth Fund to help improve competitiveness on energy efficiency.

  • John Slinger

    Question

    Steel made by British workers, in Britain and owned by the people is vital for infrastructure and national interest. How will this be ensured?

    Minister reply

    80% of rail tracks are made by British Steel. Government aims to ensure public procurement includes British Steel.

  • Richard Tice

    Question

    Congratulates the Government on nationalising steel and urges a comprehensive vision for blast furnaces and plate mills in Scunthorpe.

    Minister reply

    The most sustainable future is through technologies like electric arc, but issues raised will be addressed by the new board soon.

  • Robbie Moore

    Question

    Manufacturing businesses in Keighley and Ilkley are concerned about tariffs and quotas affecting costs and competitiveness. How do the Government respond?

    Minister reply

    The measures were necessary to prevent uncompetitively subsidised over-production. Transition arrangements will be reviewed after 12 months.

  • Sarah Olney

    Question

    Liberals supported nationalisation but wanted increased scrutiny and transparency, which the Government now supports. Why was no statement made to the House?

    Minister reply

    The Minister for Industry will provide quarterly cost updates in written ministerial statements as we appoint the new board.

  • Bob Blackman Con Harrow East

    Question

    How will Government ensure British Steel produces steel competitively and secures orders needed?

    Minister reply

    Investment to reduce costs and procurement practices ensuring a fair shake for contracts linked to national infrastructure or industrial strategy.

  • Ayoub Khan

    Question

    Welcomes nationalisation of British Steel for protecting jobs and critical infrastructure. How will the Government ensure compliance with regulations on supplying steel?

    Minister reply

    The Minister encourages bringing regulatory issues to him directly, reviewed guidance ensures British Steel is in procurement mix.

  • Greg Smith

    Question

    The hon. Gentleman questions the clarity of Government's strategic priorities for British Steel once the board is appointed, specifically asking for a commitment to provide clear objectives and timescales towards profitability when the House returns in September.

    Minister reply

    The Minister assures that the new Minister for Industry will update the House on the strategic objectives of the new board upon its establishment.

  • James Wild

    Question

    The hon. Member asks about ongoing discussions with potential buyers interested in British Steel, pressing for transparency regarding commercial options and partnerships.

    Minister reply

    Acknowledges the complexity of the situation but assures that the Government are deeply committed to private sector partnerships and open to discussions with potential buyers.

  • Jim Shannon DUP Strangford

    Question

    The hon. Gentleman raises concerns about tariffs on imports affecting Northern Ireland's manufacturing backbone, particularly under the Windsor framework, pressing for urgent meetings with the Northern Ireland Executive and local businesses to address tariff anomalies.

    Minister reply

    Commits to discussions suggested by the hon. Member, highlighting specific arrangements within trade measures intended to ensure the flow of steel into Northern Ireland and emphasising the ongoing conversation with the EU.

Shadow Comment

Joshua Reynolds

The shadow welcomed the legislation as a temporary emergency step aimed at turning around British Steel before it could be returned to private ownership. He highlighted that many Liberal Democrat amendments were accepted, including requirements for the Secretary of State to consider costs and environmental liabilities in nationalisation valuations. The shadow raised concerns about compensation, manufacturing capabilities, and the need for private co-investors to ensure the taxpayer is not permanently responsible for British Steel.

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