Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government what plans they have to publish a business plan for British Steel.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
As set out in the Written Ministerial Statement on 16 July 2026, the Government is putting in place a new Board of Directors for British Steel Limited, who will bring extensive commercial and industrial expertise to support the company and management in stabilising operations and moving the firm on from its current poor commercial position. The Board will be responsible for developing a plan to transform British Steel into a commercially and environmentally sustainable steelmaking enterprise. It will be the responsibility of the Board to determine if and when any strategic plans should be published.
Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government what discussions they held with Jingye to agree terms of nationalisation of British Steel.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
We have been in discussions since 2023 with Jingye about how to deliver a sustainable future for British Steel and since April 2025 regarding Jingye’s proposal to sell British Steel to HMG. Since we tabled our proposal earlier this year we met a number of times to discuss a pathway to resolution. We agreed with Jingye that our discussions should remain confidential.
Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government what consultation they held with steel-using UK businesses and other stakeholders before deciding to nationalise British Steel.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The Department engages regularly with steel producers, steel-using businesses, trade unions and other stakeholders on issues affecting the UK steel sector, including the Steel Act and the usage of its powers. Ministers and officials also have regular engagements, meetings and roundtables with downstream users.
Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government what due diligence they conducted regarding the environmental, employee, trading, and general business liabilities of British Steel before acquisition.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The Government undertook proportionate due diligence before acquisition, drawing on information available through engagement with British Steel during the intervention under the Steel Industry (Special Measures) Act 2025. This included assessment of potential environmental liabilities, consideration of employee-related obligations and potential liabilities, and general business liabilities. The extent of some liabilities will depend on the future operational plans for the site. The Government's assessment, based on the relevant factors including cost considerations, is that it is necessary in the public interest to nationalise British Steel Limited.
Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government whether they acquired the debts and borrowings of British Steel as part of nationalisation.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The Schedule of the transfer Regulations (S.I. 2026/832) laid on 16th July defines the property, rights and liabilities excluded from the transfer, meaning they remain the property, rights and liabilities of the transferor. These include but are not limited to any liabilities owed to, or relating to liabilities owed to undertakings within the same corporate group as the transferor. Certain unsecured liabilities owed to third parties are also excluded. The Government has acknowledged the duty to bring forward compensation scheme regulations to allow an independent valuer to determine whether or not compensation is payable.
Asked by: Lord Redwood (Conservative - Life peer)
Question
To ask His Majesty's Government how much additional debt, if any, the UK has acquired through the nationalisation of British Steel.
Answered by Lord Leong - Parliamentary Under-Secretary of State (Department for Business, Innovation, Science and Trade)
The transfer brought certain property, rights and liabilities into a company wholly owned by the Secretary of State, subject to specified exclusions, and these are listed in Schedule 1 to the British Steel Limited Property Transfer Regulations 2026 (S.I. 2026/832).
The financial position of the company wholly owned by the Secretary of State--renamed by the transfer regulations as British Steel Ltd.--following nationalisation will be disclosed in accordance with relevant accounting standards, and through the 2026-27 Annual Report and Accounts process.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the tax cost of train operators using red diesel instead of paying full fuel tax.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Qualifying locomotives for passenger and freight trains, and rail maintenance vehicles can use red diesel for propulsion. The Treasury does not hold information on the cost of rebated fuel used specifically by train operators.
To assist the Noble Lord, I can point to the most relevant published statistics available. HMRC’s non-structural tax reliefs publication sets out the overall estimated Exchequer cost of the rebate for red diesel (and kerosene used as fuel in an engine), while DESNZ’s Digest of UK Energy Statistics provides data on petroleum products consumed by the rail sector.
Although these publications do not provide a separate official estimate for train operators, they provide the best available published information on the overall cost of the relief and the scale of rail-sector fuel use.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the annual VAT loss from zero-rating rail fares.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
HMRC’s published statistics on the cost of tax reliefs[1] provide an estimate of the cost of the VAT Zero Rate for domestic passenger transport of £5.8 billion in 2025-26. This includes other public transport such as buses; a breakdown for rail fares is not available.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what was the total cost of their payments to the rail industry in the financial year 2024–25.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
In their annual report on rail industry finance in the UK, the Office of Rail and Road set out a total government support figure of £21.6 billion in financial year 2024-25.