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.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what was the total capital investment of Network Rail in the train operating companies in the financial year 2024–25.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
The Office of Rail and Road sets out Network Rail's expenditure for the financial year 2024-25. Network Rail does not invest capital in train operating companies.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the annual tax cost of exempting rail operators from the climate change levy on their purchase of electricity.
Answered by Lord Livermore
Energy supplies used in certain forms of transport are exempt from the main rate of Climate Change Levy (CCL). This includes electricity used to electrify rail lines, light a railway carriage transporting passengers and light the cab interior of a freight train transporting goods.
Information on the estimated cost of tax reliefs, including CCL exemptions, is published on GOV.UK and can be found in the annual statistics on tax reliefs. However, it is not possible to provide the annual tax cost of exempting rail operators from CCL, as HMRC does not collect this information.
Asked by: Lord Redwood (Conservative - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what latest estimate they have made of the of revenue and losses in the first operational year of HS2.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
DfT worked with HS2 Ltd to provide high level assessment of the changes to the operational costs as part of the Accounting Officer Assessment for the Reset. However, as the Reset Ranges focus on the capital cost of delivery, an Operational Expenditure Baseline is currently being produced as part of Baseline 8.0, and DfT and HS2 Ltd are continuing to work together on the updated Business Case to be published in 2027.