British Steel

Chris McDonald Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Sarah Jones]

I hope the hon. Gentleman understands that the interventions that we made in this case were different for a number of reasons. When we were in Opposition, we worked with Tata to try to get it to change its plans, but we were unsuccessful. When we came into Government, we improved the deal that the previous Government had negotiated and we improved the redundancy offer. We got Tata to commit to invest in assets and free up land for other things, and we got it to provide a package of measures to improve that situation. The hon. Gentleman is right that that package meant the closure of the blast furnaces and the building of an electric arc furnace, with the closure happening before the electric arc furnace arrived, and because of the way that electric arc furnaces work, they are more efficient and need fewer people. We have been working really hard through the transformation board, led by the Secretary of State for Wales and the Welsh Government, to ensure that everybody has a significant package of support to try to ensure they transition to other jobs. That work is ongoing and progressing well, and we will continue to focus on it.

The two situations were fundamentally different. In Scunthorpe, British Steel was in the middle of a consultation on potential redundancies, and it failed to secure the materials to keep the blast furnaces going, which would have completely broken what British Steel should have been doing during that consultation. We could not allow that to happen, those blast furnaces to close and thousands of people to be suddenly made redundant, which is why we intervened in the way we did.

[Chris McDonald (Stockton North) (Lab)]

I thank my hon. Friend for her statement and for her action on British Steel. I extend my thanks to the officials in her Department, who I know have worked tirelessly in support of our Ministers to secure a future for the business. The Government’s plan for change has changed the lives of steelworkers in Scunthorpe and Teesside. People I work with, and their families, will feel a sense of relief—I feel a sense of relief. Ultimately, it is the customers of British Steel who will pay the wages of those workers in the future. In one of the future updates that the Minister has promised, can we cover the product and market development for British Steel, and how British Steel can better penetrate the UK market and increase its market share for domestic production?

[Sarah Jones]

I thank my hon. Friend for his work and for the support that he has provided to me, officials and others because of his expertise in this space. He is right to thank staff; they have worked unbelievably hard, and I am very grateful for what they have done. He is also right to talk about how we ensure that the product market develops in the way that we want it to. We are looking at how we increase demand in the UK, as well as at procurement and other issues, so that we are not just trying to save our existing provision, but to expand our provision so that the steel industry can start to grow, instead of halving as it has done over the past 10 years under the Tories.