The Government will pursue "every option" to keep steel-making in South Yorkshire after Speciality Steel UK entered insolvency last month. Industry minister Sarah Jones told MPs she "very much believes" the steelworks have a future in both South Yorkshire and the West Midlands.
The Government took control of Speciality Steel UK in August in a bid to save nearly 1,500 jobs at the country's third-largest steelworks. The move came after the High Court confirmed the company, previously part of Sanjeev Gupta's Liberty Steel business, would face compulsory liquidation.
Jones assured the Commons there would be no immediate changes to operations, including jobs. She said the Government "stands with" affected workers, families and communities during this difficult time.
Government Intervention
The firm has been placed under the Official Receiver, a government official managing bankruptcies, alongside special managers from advisory firm Teneo. Operations continue at plants in Rotherham, Stockbridge and Brinsworth in South Yorkshire, as well as Wednesbury in the West Midlands.
Jones told MPs the sites must return to production through private investment from an owner who can put the business "on a long-term sustainable footing". She said the Government would work with trade unions, the South Yorkshire Mayor and local councils to provide support.
The minister explained it would have been "wholly inappropriate" for the Government to enter commercial arrangements with Liberty Speciality Steels. The company had failed to file accounts for over six years and faced prosecution from Companies House, while its director remains under investigation for suspected fraud, fraudulent trading and money laundering.
Political Response
Shadow business minister Gareth Davies (Conservative) accused the Government of failing British industry despite "warm words" and Labour promises. He criticised what he called an "ideological obsession" with prioritising green policies over economic growth while British steel faces pressures from tariffs and high energy costs.
Jones defended the Government's record, citing interventions to protect thousands of jobs in Scunthorpe and secure better deals for workers in Port Talbot. She said the Government was "spending money where we can on British business, something his government failed to do".
Rotherham MP Sarah Champion (Labour) praised the Government's "resolute action", while Liberal Democrat business spokesperson Sarah Olney called steel production security crucial amid global economic turmoil. Reform UK deputy leader Richard Tice suggested merging Speciality Steels with British Steel to create a stronger industry champion.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
