British Steel

Andrew Griffith Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Andrew Griffith (Arundel and South Downs) (Con)]

I thank the Minister for advance sight of her statement, and I join her in thanking the Scunthorpe workers for their efforts over the last few weeks.

We are here once again because the Government had no plan—they failed to prepare, they bungled negotiations, and they took too long to listen to the warnings. What do we have to show for it? We have this botched nationalisation and a potential bill for the taxpayer stretching into the billions. I say billions, but it remains entirely unclear how much this bungled 11th-hour decision will cost, while the assets still belong to China. I hope that Members across the House will agree that this is a complete mockery of transparency and accountability, and I hope that the relevant Select Committees will take it upon themselves to conduct their own inquiries. Instead of a statement from the Treasury today, the Chancellor is running to the International Monetary Fund in Washington to explain how she broke the UK economy. Steel nationalisation, the IMF downgrading growth forecasts, trade union summits in No.10—it is all sounding a bit 1970s.

The simple problem is that we do not know the answers to any of these questions because the Government have failed to publish an impact assessment. Will the Minister confirm to the House when they plan to do so? Has anyone in government asked the Office for National Statistics whether British Steel will now be classified as a publicly owned entity? Has the ministerial team discussed the impact of the takeover with the Chancellor on her already evaporated fiscal headroom? To date, how much has the Department spent, or how much has it committed to underwrite—that is a straightforward question that deserves an answer? Given that her Department had no budget for revenue support of steel, has the Minister been able to secure additional funds from the Treasury, so that other sectors or support for British exporters do not pay the price?

We have seen no further detail of the Government’s proposed steel strategy, or any confirmation of longer-term plans to protect British steelmaking. Labour Members refused to back a coking coalmine to produce some of the raw materials that blast furnaces rely on. Instead, they wait for shipments to arrive from halfway around the world. Most importantly, the Government have not set out how they intend to reduce the enormous burden of sky-high energy costs. Instead, the Secretary of State for Energy Security and Net Zero seems dead set on delusional policies that drive energy prices in this country even higher. We cannot make steel sustainably when we have the highest energy prices in Europe. Prices for industrial energy in Birmingham in this country are four times higher than those in Birmingham Alabama. We cannot make steel if we do not have coal.

As Nissan’s Alan Johnson said today, the “simple fact” is that the UK is

“too expensive… Once you’ve paid your electricity, gas, NICs we are too expensive—any industrial strategy that does not tackle that is a waste of time.”

Well, we are here once again. There is no steel strategy, no industrial strategy, no export strategy and no energy strategy. Perhaps when she replies the Minister can share a single strategy that this Government actually possess.

[Sarah Jones]

It is getting harder and harder to understand quite what the Opposition’s policy is on steel. It is all over the place. On the one hand, they ask us questions about costs. They say they had negotiated a modernisation plan with British Steel, but they will not tell us how much money they were willing to throw at that plan. Their proposal, apparently, was to build on two sites. If Jingye was asking us for £1.2 billion to build on one site, how much taxpayers’ money were the Government putting on the table to fund two? We need answers to those questions.

On nationalisation, last week the shadow Secretary of State for Business and Trade, who was, as we know, Financial Secretary to the Treasury when Liz Truss crashed the economy, said that he backed full nationalisation of British Steel. On the other hand, this morning the Leader of the Opposition said on Radio 4 that nationalisation should be the “last resort.” It seems a bit muddled. Finally, the hon. Member asked questions about the cost of energy pricing, forgetting of course that industrial energy prices doubled under the Tories. UK Steel, the trade body for the steel industry, is clear and has said that it is

“the UK’s reliance on natural gas power generation”

that leaves us with higher prices than our international allies. It is not too much clean energy, but too little.

The hon. Member asked a reasonable question about the costs. I hope he will understand that matters at the moment are sensitive and commercially confidential, and I hope he will be assured that we will publish accounts in due course. We are securing materials and reviewing things such as health and safety, and other critical roles. Regular meetings are happening between the Departments and British Steel, as he would expect, and of course we will publish those details in due course. He asked about the coalmine. British Steel has told us directly that it could not use that coal because of the sulphur content. We also need coke ovens to turn coal into coke, and the coke ovens at British Steel were closed on his watch several years ago. The reality is that the Tories failed the British Steel sector, and this Labour Government are securing it.