British Steel

Lord Sikka Excerpts

Monday 20th July 2026 Lords Chamber

[Lord Leong (Lab)]

No, it is not. Let us not forget that overcapacity and artificially cheap steel are why our steel industry is under such threat. Allowing cheap steel imports to enter the UK unchecked would only jeopardise domestic supply and the security of our UK supply chains for our critical infrastructure and defence. The measures put in place have been designed so that we will increase our domestic capacity, which is what the Government are trying to do.

[Lord Sikka (Lab)]

My Lords, I welcome the Government’s decision to nationalise British Steel, but I seek some clarification from the Minister on potential compensation to be paid to British Steel’s owners. Can he assure the House that the following factors will be taken into account: first, British Steel was insolvent, so the price is virtually knocked down; secondly, it received a vast amount of public subsidy, which will be recovered; and thirdly, its operations have done environmental damage, so the cost of that will be deducted from any compensation? I asked the Minister that question during the steel debate. I know he had lots of questions to answer, but I hope he has an answer now.

[Lord Leong (Lab)]

My Lords, the Government’s current view is that, given British Steel’s history of loss-making and its poor financial position, the commercial value of the business today is nil. However, compensation will not be decided by ministerial assertion. Regulations will be laid in the autumn to appoint an independent third-party valuer. That valuer will assess what compensation, if any, is owed and the Government will abide by that process.