Steel Industry (Nationalisation) Bill

Saqib Bhatti Excerpts

2nd reading
Thursday 21st May 2026 Commons Chamber

[Peter Kyle]

The hon. Gentleman will know that when I took the difficult decision to introduce measures, I did so for products that compete directly with the products that we are capable of making domestically. Speciality Steel UK is going through an administration process at the moment, but when that is complete and the company is up and running properly, I need to make sure that its products and services are protected and viable domestically. Given the world in which we are living, where national resilience is so important to our nation and the economy in a way that it simply has not been for decades, the decisions that I am making to ensure that British steel production is viable and sustainable are of paramount importance.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

Will the Secretary of State give way on that point?

[Peter Kyle]

I am going to make a bit more progress.

While the Government are working alongside businesses to invest in, modernise and protect Britain’s manufacturing base, the amendment would deny the Bill its Second Reading. The very people who did so much to damage the steel industry in government are now trying to do so again in opposition—then as tragedy, and now as farce. As such, the House should reject the amendment. Britain’s steel industry needs an activist, interventionist Government, and it needs determination, decisiveness and delivery. It does not need a Government who have their hands tied, their room for manoeuvre blocked and their ability to act denied. Britain must have a strong domestic steel industry—now and into the future.

--- Later in debate ---

[Andrew Griffith]

No, I am going to make some progress on tariffs. A number of hon. Members have raised this very important issue, shedding light on the way that the Government are tilting the playing field on tariffs. Under this Government, we have already seen a flurry of Trump-style tariffs—doubling steel tariffs and halving quotas—that elevate the interests of one firm over the automotive, aerospace, advanced manufacturing and defence sectors. Firms involved in the supply chains of AUKUS and Tempest are now looking at shifting tooling and jobs to other countries, instead of manufacturing components here.

[Saqib Bhatti]

I thank the shadow Minister for giving way; he is making an excellent speech. Specifically on tariffs, does he agree that the approach is illogical? Reducing quotas will decrease the supply, and increasing the tariffs will increase the cost. I listened to the Secretary of State very closely. He talked about getting domestic production here, but by the time that happens, most of the businesses will have gone to the wall. Does my hon. Friend agree that the approach is illogical?

[Andrew Griffith]

My hon. Friend makes exactly the right point, and that point has been made by other hon. Members and across the manufacturing industry. We are at risk of losing critical parts of our defence, aerospace and automotive supply chains.

--- Later in debate ---

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It probably will not come as a surprise to Labour Members, but I fundamentally disagree with the last speaker, although I appreciated his passion. [Interruption.] The Secretary of State is getting a bit excited; I will come to him in a minute on the issue of tariffs. I am proud that we are the only party in this House objecting to the Bill, and for the right reasons.

The Secretary of State repeatedly talks about making this country stronger, but I do not think this Bill does that by nationalising. I just do not think that Governments can run businesses. I certainly mean no disrespect to Ministers on the Front Bench, but they will create inefficiencies and push up prices, and the taxpayer will end up stomaching the cost. That does not make us stronger; it makes us weaker.

The hon. Member for Hartlepool (Mr Brash), who spoke before me, said that we are still in the 1990s, but I think this Government are taking us back to the 1970s by pushing up costs and lumbering the taxpayer. A future Conservative Government will have to unwind some of the real harm that will come to fruition. No Labour Members can tell us where the nationalisation will stop. Will it be ceramics tomorrow? What will happen? Which industries will the Government pick and choose?

In the limited time that I have, let me come on to the issue of tariffs. Like my hon. Friend the Member for South Northamptonshire (Sarah Bool) and all my hon. Friends who have raised this point, I have been visited by a constituent. His name was Peter Watson, of Davicon. I have written to the Secretary of State about this issue, although that was only last week; I respect the fact that he may not have had time to come back to me, but I hope he does.

Davicon is the UK’s leading mezzanine manufacturer. The briefing that Peter put in front of me was a result of the tariffs and the quota reduction. There is a reduction of almost 97% on merchant bars and an increase in quotas of 50%. For all the Secretary of State’s best intentions and whatever he wants to achieve, the reality is that industry and markets do not work to the whims of Government. They will not move quickly enough to do that, which will push up prices. In the briefing I saw, that would mean a doubling of the quota for per-tonnage steel by 1 July. That cost will have to be borne by industry and taxpayers. If we are talking about nuclear power plant creation or HS2, we know that those taxpayer-funded projects will have to bear those costs.

I was listening to the Prime Minister yesterday during Prime Minister’s questions, and it is clear the Government recognise that an issue is coming down the tracks. I argue that that should have been anticipated before the tariffs came into place, but we are where we are. I have written to the Secretary of State, and I would really welcome some serious action on this issue. My hon. Friend the Member for South Shropshire (Stuart Anderson) made a really eloquent argument about a delay in the introduction. If that is not going to happen—

[Peter Kyle]

indicated dissent.

[Saqib Bhatti]

The Secretary of State is shaking his head. If that is not going to happen, let us look at the HS codes. He needs to recognise that there will be a serious impact on the steel industry and the peripheral industries that rely on steel manufacturing in this country.