PARLIAMENTARY DEBATE
Speciality Steel UK: Insolvency - 2 September 2025 (Commons/Commons Chamber)

I would like to make a statement regarding the insolvency of Speciality Steel UK Ltd, which is part of the Liberty Steel Group. Hon. Members will have seen that the High Court granted a compulsory winding-up order against Liberty Speciality Steels on 21 August, and the company has now entered liquidation.

First and foremost, let me say this: the Government stand with the affected steelworkers in Rotherham, in Sheffield and in Wednesbury. We stand with their families and the communities, who will undoubtedly be worried at this difficult time. I would like to reassure them and all those employed by Liberty Speciality Steels that we are standing by with our rapid response teams to give immediate support on the ground if required, that we are working with the trade unions and the South Yorkshire Mayor, and that we are working with the councils and hon. Members from affected constituencies to offer all the help we can.

I also want to stress that there will be no immediate changes to the current operation of the business, including to employees’ jobs. Following the appointment of special managers, the company’s sites have been secured and employee payroll processed within 24 hours. Other Liberty Steel companies outside Speciality Steel, such as Liberty Dalzell and Liberty Hartlepool, are not affected by this action.

Following the company’s liquidation, the official receiver has been appointed as liquidator by the court. Hon. Members will know that the official receiver operates independently of Government, with a statutory duty to act in the best interests of creditors.

Yesterday, I laid a departmental minute notifying the House of the contingent liabilities associated with this intervention. I regret that, due to the liquidation taking place during recess, we have not been able to follow the usual notice period of 14 parliamentary sitting days. However, a copy of the departmental minute will be placed in the Libraries of both Houses. In addition, the Government have agreed to funding for the official receiver, who will now stabilise operations. The official receiver will gather company information and report to us on the likely next steps, including options for the company’s business and sites. The total costs will depend on market conditions and the strategy adopted by the official receiver. However, that will be subject to close scrutiny by my Department and the Insolvency Service.

As the House will be aware, the company has faced severe financial and operational difficulties since 2021. Liberty Speciality Steels had failed to file accounts for over six years—a failure that has led to a separate prosecution by Companies House of its parent company. I am sure that the official receiver will want to gain a better understanding of the company’s business and the conduct of its directors leading up to the liquidation. I also inform the House that the director of the company is currently under investigation by the Serious Fraud Office for suspected fraud, fraudulent trading and money laundering. Given that, I am sure hon. Members will agree that it would have been wholly inappropriate for the Government to enter into commercial arrangements with the company.

This Government will always take difficult decisions when they are in the national interest. That is why, in April, we acted to prevent the pre-emptive closure of the blast furnaces at British Steel in Scunthorpe. In the case of Liberty Steel, the lack of transparency, the legal and financial risks and the complete absence of reliable corporate information meant we had no credible route to act before insolvency. It is worth noting that Liberty Speciality Steels uses electric arc furnace technology that can be powered up or down as needed—although it should be noted that those furnaces have not been operating since July of last year. That was the situation this Government inherited.

The circumstances in Scunthorpe were fundamentally different. British Steel operates the UK’s last remaining blast furnaces—assets that, once shut down, cannot simply be restarted. Allowing those blast furnaces to be closed pre-emptively would have removed our ability to make strategic choices about the future of steelmaking in Scunthorpe, and that was not a position this Government were prepared to accept. Scunthorpe was therefore a truly exceptional situation and that is why we took the unprecedented step of implementing the Steel Industry (Special Measures) Act 2025 to maintain the safe operation of the blast furnaces.

The situation with Liberty Speciality Steels is not comparable. The company was issued with a winding-up order by the High Court due to longstanding financial issues. Spending taxpayers’ money on a company operating in such a way would have exposed taxpayers to hundreds of millions—potentially billions—of pounds in hidden costs.

With all that said, I very much believe that the steelmaking sites in Rotherham, Stocksbridge, Brinsworth and Wednesbury have a future. I am keen to see them return to production, but that has to be achieved through private investment by an owner who can invest in the workforce and in the future of the business so that they put it on a long-term, sustainable footing. We know that the business environment has not been good enough for the UK’s steel industry, which is why we have already made substantial changes to secure a stronger future for it. I will say more about the steps that we have taken shortly.

In the case of Liberty Speciality Steels, it goes without saying that the company’s hardworking employees are key to turning the sites around. Their skills and expertise will be essential in delivering that brighter future. However, in its current state, producing only minimal volumes of steel and with many employees still on furlough, we know that some tough choices lie ahead. It is now for the official receiver to determine the next steps in the insolvency process. But let me be clear: this Government will stand by this workforce and do all we can to support them through this period of uncertainty.

Despite the challenges facing the steel sector today after years of neglect under the previous Government, we believe that this industry will bounce back and grow stronger tomorrow. This Government are doing everything we can to make that happen. We are pressing ahead with a bold steel strategy for the UK, set to be published later this year. That strategy will set out our vision for a competitive, decarbonised and resilient domestic steel industry. Our approach is clear: we want the UK steel sector to thrive, with strong private investment and commercially sustainable operations at its core.

Under our new industrial strategy, we have already announced some major policy changes to increase the future viability of the steel industry. We are reducing electricity costs for steel producers by increasing network charge discounts through the supercharger from 60% to 90%. We are changing Government procurement rules via the publication of a new steel public procurement notice to ensure that UK-made steel is considered for all public projects. We are also strengthening current steel safeguard measures, ensuring that UK steel producers will not be undercut while still ensuring that the UK has a steady and reliable supply.

Hon. Members will know that we have also secured a much-improved deal for the workers of Port Talbot—something the Opposition repeatedly said could never be achieved—and we delivered it alongside a £500 million grant to support the transition to low-carbon electric arc furnace production. I was proud to attend the groundbreaking event for this in July with the chair of Tata Group. We will continue to work hand in hand with this vital British industry to ensure its long-term success.

Let there be no doubt that, for Liberty Speciality Steels, we will pursue every option to keep steelmaking in Rotherham, Sheffield, South Yorkshire and the west midlands. We will offer all possible support to the independent official receiver on the all-important next phase, and we will continue to work with hon. Members across the House to ensure that the UK remains a proud steelmaking country now and for many years to come. I commend this statement to the House.

I call the shadow Minister.

I am grateful to the Minister for giving me advance sight of her statement today, but here we are again: another day, another Government takeover of a key British manufacturing plant, another 1,500 jobs—1,500 people—facing an incredibly uncertain future, and the prospect of significant job losses alongside the wider economic impact across supply chains and in aerospace, defence and power generation that would result from the collapse of this specialist steelworks.

Despite so many warm words about the steel industry, despite so many Labour promises to the people who have worked their whole lives in that industry, and despite the impression of superiority while in opposition, this Labour Government are failing British industry. They are failing to provide certainty of policy and the economic growth that they said was their central mission, and they are failing to get a grip on the issues that affect thousands of working people’s lives. The Minister says she wants to provide certainty to the steel industry and the people who work in it. She says that we can expect a bold steel strategy for the UK, but where is it? The Government are not new any more; they have been in power for a year now, and there is still no clarity on this supposedly bold strategy.

The British steel industry faces a fierce dual set of pressures: new 25% US tariffs and continued high energy costs. We all know that the energy costs in this country are too high, yet they have been driven only higher by this Government’s ideological obsession with prioritising decarbonisation over economic growth. Back in May, Liberty Steel warned that it faced significant challenges due to soaring energy costs, but instead of focusing on tackling the underlying causes of expensive energy, the Energy Secretary is backing windmills while leaving Britain’s oil and gas industry in the doldrums. He is leaving our amazing British oil and gas—our greatest energy source—trapped under the North sea. This is economic illiteracy aimed at satisfying their own green obsessions. From steel to chemicals to cars, builders and makers across Britain are paying the price of this Government’s socialist green agenda, and it is their workers and investors who will lose out.

On tariffs, despite the economic prosperity deal agreed by the Prime Minister and President Trump, the agreement’s provisions lowering US tariffs on UK-produced steel and steel derivative products have still not come into effect. The Government have repeatedly avoided answering questions in this House on when the agreement will come into effect. We heard no mention whatsoever of it in the statement today or in the note yesterday, so I ask again: when will the provisions lowering US tariffs on UK steel come into effect?

Of course, even if those provisions do eventually come to fruition, steelworkers should beware of this Government, who have overpromised and under-delivered before, with devastating impacts for workers. Just look at Jaguar Land Rover. The Prime Minister looked workers dead in the eyes and promised that he would protect their industry and save their jobs. He then used those workers as a Labour propaganda photo opportunity across television and the front pages when the UK-US deal was announced, but little over two months later, Jaguar Land Rover announced it was cutting 500 jobs. The very same workers who were promised everything by the Prime Minister were left out in the cold by this Labour Government’s inability to secure a better trading relationship with our closest ally.

Let us today try to get some clarity on what exactly this Minister has done and will do for the British workers impacted at Liberty Steel. First, she announced that the Government had agreed to funding the official receiver and that total—

Order—[Interruption.] No, it’s no use nodding at me. I have not gone over time; it is the shadow Minister himself. I am sure he is now coming to a conclusion.

I am, Mr Speaker. Although I have lots of questions, I will ask just two very quick ones, if that is okay.

You must ask them now, otherwise I am going to stop you.

I will, Mr Speaker.

What is the budget for the official receiver? The Minister has not laid out any costs. She has said that it is related to market conditions but has not set out any estimates. She knows that the Treasury will have approved estimates, so please will she set those out? The Government have made the National Wealth Fund allocate £2.5 billion to British Steel. Can she assure us that they will follow the investment allocation that assures its operational independence—

Order. Please, it is not acceptable on either side of the House to take advantage of the Back Benchers who want to get in. You have a set amount of time. If the Minister can stick to it, I expect the shadow Minister to do so. If the Minister goes over time, I do then grant time the other way. Please do not do this again.

Let us come to the Chair of the Select Committee.

Thank you very much, Mr Speaker—

Order. The Minister needs to respond. It’s been that long that I had forgotten.

Thank you, Mr Speaker. I shall just explain to the shadow Minister how the system works. The Government have not taken over control. That is not the process of the official receiver. The official receiver was appointed following a court case which began in 2024. It has been a very long and arduous case.

The hon. Gentleman will hopefully understand that I cannot set out the cost of the official receiver at this point because the official receiver has only just begun his work. It is very early days and we cannot be specific. We know the numbers will be in the millions, as opposed to anything more substantial, because the company is not operating in and of itself. What we are doing is ensuring that the salaries are paid, which I hope the whole House would agree is the right thing to do. Companies will be coming forward and expressing an interest in buying parts of the company, and it will be for the official receiver to look at that and see what process we should go through, but I cannot give the hon. Gentleman the actual numbers on that. I hope the whole House will understand why not.

On the shadow Minister’s wider point, if this Government had not intervened, thousands of people would have lost their livelihoods in Scunthorpe; that is a fact. If this Government had not intervened, we would not have had a better deal for the workers in Port Talbot, we would not have been there supporting them in the transition, and we would not be there supporting the building of the electric arc furnace, which began back in July.

The shadow Minister asked what this Government have already done. We have already changed the rules on procurement. I have worked closely with colleagues in the Cabinet Office on that to ensure that where Government are spending money, we are spending on British business where we can—something his Government failed to do. On energy prices, we have committed to lowering prices through the reduction in costs that will come from the expansion of the super-charger—something his Government failed to do. We are working on a bold strategy, which we will publish this year, that will build on that. Whether on trade protections—on which we have already taken measures—our scrap policy, R&D, jobs, apprenticeships or skills, we will have a bold strategy because we believe in steel, unlike the previous Government, who said that manufacturing is a Victorian pursuit best left to the Chinese. We do not agree with that approach.

I will try again: I call the Chair of the Select Committee.

I congratulate the Minister on saving Britain’s real engineering from years of financial engineering which was not in the best interests of this country and was more in the interests of the self-enrichment of the people behind it. The question for us today, though, is what steps the Government will now take to ensure and safeguard a growing, thriving industry. Will the Minister reassure the House that she will use us on the Committee to oversee the liabilities that the Department has taken on? Crucially, will she set out when she expects those lower energy costs to kick in, when she expects the tariff barriers in the United States to come down, and when she will tie together the steel strategy, which I hope she will publish as soon as possible, for the House to debate?

I thank my right hon. Friend for those helpful questions. He reminded me that the shadow Minister had asked about the US. Of course, we are in a position where the world has tariffs of 50% on steel and aluminium; we have 25%. We are working with our US counterparts to reach a conclusion to those negotiations. My right hon. Friend will know that the President is due to come to the UK and, of course, we will be doing all we can to get that negotiation concluded at pace.

My right hon. Friend asked about energy costs. We are seeking to ensure that there is a viable steel industry into the future and that those companies currently talking to the official receiver about wanting to take over and invest in Liberty can do so in a way that will make them money. On the charges we are reducing—the 60% to 90% super-charger extension for network charge relief—to give an example, it will mean about £4 to £5 relief per tonne of steel produced. We know that Liberty is not producing what it can at the moment, but two or three years ago it would have been producing about 300 tonnes of steel per year, so it would have saved up to £1.5 million on its energy costs. That is a substantial reduction and something that I am sure he will welcome.

On the liabilities, of course we want to be as honest, open and transparent with the House as we possibly can. A lot of the liabilities are with the creditors at the moment. We want to come to the House as soon as we can to ensure that we are setting out the costs that we incur. My right hon. Friend is right that the steel strategy this year needs to be bold, and we will of course look to the work that his Committee has done to help us in that.

I call the Liberal Democrat spokesperson.

May I start by associating the Liberal Democrats with the Minister’s remarks in support of the employees, families and communities who are affected by this latest development? We welcome the Minister’s coming to the House today to provide some clarity.

Steel is a sector of huge strategic importance for our country. It provides vital materials for our national infrastructure, from defence to renewable energy, and it creates thousands of jobs across the UK. The neglect of the steel industry in recent years is just another part of the previous Government’s disastrous legacy. With Putin’s barbaric war in Europe and Donald Trump’s damaging tariffs causing economic turmoil, securing the future of steel production in this country is more important than ever. That is why the Liberal Democrats firmly believe that nothing should be off the table in supporting this critical sector.

For too long, our steel industry has been neglected. The Conservative Government oversaw a string of near collapses and last-minute deals. They scrapped the industrial strategy, which is so vital to our manufacturers, and put in place new trade barriers, which constrained our exporters. In the light of this latest insolvency, will the Minister set out what actions the Government are taking to set our steel industry on a truly sustainable footing? What reassurance can the Government provide that job losses can be avoided in the future? What progress has been made in bringing down industrial electricity prices through the measures announced in the industrial strategy? What are the Government doing to press President Trump to finally drop his damaging 25% tariffs on our steel exports? Finally, what steps are the Government taking to treat steel as the nationally strategic asset that it is, ensuring that more British-made steel is used to power our national infrastructure and other major projects here in the UK?

I thank the hon. Lady for her remarks. She is right to ask about how we ensure that this nationally strategic asset is protected, and we are doing that. I have just set out the reduction in energy prices that the steel industry as a whole will benefit from—extending the super-charger from 60% to 90% to give network charge relief, which will bring significantly lower costs for energy prices for our steel industry. We are prioritising the procurement of British steel where the Government are spending money, because we believe that that is the right thing to do. We have already introduced protections for steel trading, and we are ensuring that we do everything we can, talking to our US counterparts all the time, about reaching a conclusion on the negotiations on the steel tariffs. I am optimistic about those conversations.

Of course, I speak to officials and other Ministers, and to the steel industry, about these issues all the time. We are lucky to have the Steel Council that we put together—trade unions, industry and others who are helping us to develop what we think will be an ambitious steel strategy that will ensure that the steel industry will not decline. The strategy will ensure that we will not be in the position we are currently in, where only 30% of the steel we use in this country is made in this country, and that we will be in a position where we can protect those good, experienced jobs and those good people who we want to support and make sure the industry grows.

You will be aware, Mr Speaker, that as long as I have been an MP, I have been coming to this Chamber arguing for support for Speciality Steel in my constituency. I politely say to the shadow Minister that the difference in response from this Government is night and day from what I had under the Conservatives. I personally thank the Minister, and the Secretary of State, for having such an open-door policy to me and my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball). I know the Minister is doing everything she can to save this speciality business.

One of the first actions of the official receiver was to release approximately 30 apprentices who were due to start their training in the next few weeks. Can the Minister reassure the House that the Government will not only commit to the business but acknowledge that it can survive only with its highly skilled, committed, professional staff and that she is as committed to them as she is to the business?

I thank my hon. Friend for those remarks; they are gratefully received, and we will continue to do all we can to support the steel industry. She is absolutely right that a number of apprentices were due to start this week, but the official receiver took the decision that, given that the 12-month continuation of the apprenticeships could not be guaranteed, it was right to try to find them other placements. I am taking a close personal interest in what happens to those 50 people. I know the local authority and the Department for Education are trying to ensure that we can find other places for them. I want to make sure that we can do so, because one of the things this Government are passionate about is ensuring that our young people have the apprenticeships to give them support for the jobs that we know we need into the future.

The Minister is obviously incredibly committed to the steel industry, as we all are, but manufacturing will continue to struggle in this country when it pays energy prices that are so much higher than competitors in Germany and France. Can the Minister assure the House that in a year’s time, following the Government strategy, manufacturers—whether ceramics or steel—will be paying the same amount for their industrial energy prices as their German and French competitors?

The right hon. Gentleman makes a good point. Of course, our energy prices are too high and it is difficult for companies to compete. We are taking action to address that, in the first instance by expanding the super-charger, which will make a significant difference to industries that use significant amounts of energy. We will also introduce an electricity scheme in 2027—it is a complex process and will take time to bring in—meaning that around 7,000 companies across the country will also have significant reductions in their energy costs. We are taking what we believe to be the right measures in our industrial strategy through those two interventions, to ensure that our energy costs come down and that we can be competitive among our European counterparts.

Liberty’s Speciality Steels UK has failed its highly skilled workers. This ongoing situation has been deeply concerning, so I am delighted that the Minister has offered her solidarity and the Government’s support for the incredible workforce at the site in South Yorkshire. It is hugely positive—and a great contrast with the 14 years of Conservative Government—that this Government have stepped in and appointed an official receiver to protect the 1,400-plus jobs at the two sites, including Stocksbridge Speciality Steels in my constituency. The Secretary of State has acknowledged in this Chamber the strategic significance of those sites to national security, and we must ensure that those businesses are supported in fulfilling their capability and have, as the Minister has recognised, a strong future. Will she take adequate time to find a responsible buyer with the right deal, and during that time will workers be kept in employment with salaries continuing to be paid, while efforts are made by her and the official receiver to resolve the outstanding pension issues?

My hon. Friend and I have spoken many times about this—she is such a champion for the industry, as are many colleagues. She is right to point to the importance to the country of the work at Stocksbridge. Of course, we will do what we need to do through the process of the official receiver to ensure that people get the salaries that they need. For the past couple of years, so many of those people have been on furlough—we want to turn that around. We believe that this viable industry is languishing unnecessarily. The Government will provide the right support through interventions such as our energy reduction measures, and work with the official receiver. I can tell her that multiple companies are interested and coming forward, and we need to establish how viable those offers are and what the best situation is. Of course, the official receiver must think of the best outcome for the creditors, but we take a close interest in that. My hon. Friend is right to point out the pensions issue. I know that there is uncertainty. The official receiver and Teneo are considering these issues now to see exactly what has and has not been paid so that we can unpick the pensions issue.

This is the second crisis in the steel industry in the past year. It impacts other commercially operated industries that are critical to our national security. In Lancashire, the failure to place an order for 25 Typhoon jets is risking thousands of jobs in the critical defence industry of BAE Systems. There is also a lack of join-up between Departments, which do not realise that the whole life-cycle of nuclear fuel manufacturing is equally critical for our national infrastructure and impacts on hundreds of highly skilled jobs in Lancashire at the Westinghouse Springfields site. Will the Minister update me on her work with the Ministry of Defence to ensure that commercially operated industries that are critical to our national defence capability and security are strategically supported to be sustainable in the future?

The hon. Gentleman is right to point out the importance of our defence industry and the need for us to support it. Of course, the industrial strategy outlined eight growth-driving sectors that we believe can be turbocharged with Government support—defence was one of them. We have published those sector plans, apart from the defence one, which will come shortly—he should look out for it. We have significantly increased funding for defence, which will lead to thousands of jobs across the UK. I will work closely with my colleagues in defence, particularly the Minister for Defence Procurement and Industry, to ensure that we procure UK jobs where we can and support our industry to grow.

First, I thank the Minister for her action—after 14 years of inaction by the Conservative party, it is a welcome change. Sheffield is synonymous with steel, particularly special steels, after Harry Brearley invented stainless steel in the city over 100 years ago. The Minister mentioned public procurement, and consideration being given—I think those were the words she used—to the purchase of British steel. May I ask her to be clearer about what “consideration” means? I hope that it means looking not simply at the narrow issue of costs for a product, but at the wider benefits of purchasing UK steel—benefits to the steel and engineering sectors, as well as to the broader economy. Will she assure us that when public procurement takes place, those wider considerations will come into effect?

Yes, within the parameters of what we can do legally, in terms of subsidies. We are ensuring, and the Cabinet Office is keen to ensure, that when we spend public money, we buy British. The value of that, and of British jobs around the country, is recognised in the contracts that we pursue. My hon. Friend talks about the importance of steel in his area. I have talked with colleagues about developing a steel corridor, which I think is important. We are pursuing that through the steel strategy.

The Minister was right to come here today to make a statement on such an important part of the national infrastructure. It is just a shame that no Minister has ever made a statement in this House on Grangemouth. We have now learned that the Chancellor met INEOS chair Jim Ratcliffe just three weeks ago—just three weeks before Petroineos Grangemouth closed—but she did not do so much as raise the refinery with him. In her statement, the Minister said: “the Government stand with the affected steelworkers in Rotherham, in Sheffield and in Wednesbury. We stand with their families”. That is quite right; so do we in the SNP. But why have this Labour Government never stood with the workers of Grangemouth?

It is up to the Minister to answer that question if she wants to, but the statement is about steel, rather than petroleum.

Thank you, Mr Speaker. I will just say that we have very much stood with the workers of Grangemouth. We are investing, through the National Wealth Fund, £200 million to support that development. I have had multiple conversations, and the hon. Gentleman and I have spoken multiple times in this place, about how we will support industry in Grangemouth to transition and grow, and provide significant support to workers where they lose jobs. I fundamentally disagree with the picture that he paints.

I thank the Minister for her action. Steel remains a key part of the South Yorkshire industrial and economic strategies. Can she reassure the House that workers’ wages and livelihoods will continue to be prioritised throughout the whole process, and will she join me in thanking our hon. Friends the Members for Penistone and Stocksbridge (Dr Tidball), and for Rotherham (Sarah Champion), for their work to champion not just the sites in Stocksbridge and Rotherham, but the South Yorkshire steel corridor?

Of course. I share that gratitude for those amazing colleagues who stand up for what they know to be right and sensible. We are protecting not something that is not worth protecting, but something that has a vibrant and viable future; that is what we are working towards. We are working closely with the South Yorkshire mayoral combined authority and the Mayor. In broader advanced manufacturing in the region, including the innovation district and research centre, there is a huge wealth of expertise and talent that we can build on.

I am grateful to the Minister for the frankness of her statement. She says that the director of the company is under investigation for suspected fraud, fraudulent trading and money laundering. Can she reassure the House that that will not in any way hold up the Government in taking any remedial steps that they need to take in support of the industry and its workforce? For background knowledge, will she tell the House precisely what sort of specialisms this plant offers, given that it names itself a Speciality Steel enterprise?

The right hon. Gentleman should perhaps go for a tour and see what the speciality is, but it is defence, aerospace and industrial engineering on the Stocksbridge site. The Rotherham site has two electric arc furnaces, which feed the Stocksbridge site, and there is huge expertise there. There are a number of other sites that feed various sectors, such as the automotive industry, hydraulics and a whole range of others. There are a range of specialisms.

On the investigation, the official receiver will look at what is true and what is not, because there have not been any accounts published for many years. They will establish what has happened. The Secretary of State has written to the Insolvency Service today to ask it to take special account of the Serious Fraud Office investigation, and to pass over any information it uncovers to the Serious Fraud Office, so that it can do its work.

I congratulate the Minister on the decisions she has made in the last few weeks. We in Sheffield are very proud of our steel industry, and we want to resurrect it. We want people to be proud of the city, and to get into the same work that their grandparents did many years ago. Constituents who have been in contact with me on the issue will be very relieved, following the reassurance that the Minister has given, but if she could clarify the pension issue, that would offer even more reassurance.

I am so proud to hear our Minister speaking about steel, and I am quite disgusted at the way the shadow Minister, the hon. Member for Grantham and Bourne (Gareth Davies), and other Conservative Members have tried to pretend that they did not run down the steel industry. They never even had a steel strategy in all their years in office. They really ought to apologise for the absolute rubbish they were talking.

I thank my hon. Friend for pointing out the failings of the Opposition, which we all understand very well. On the pension issue, I recognise the concern that people will have. We have to let the official receiver get under the hood and work out what has been paid and what has not, because that is not clear. Once we know, we will look into that and do what needs to be done, but I do not want to say something on the subject until we know the reality.

I congratulate the Minister and the Government on doing the right thing in supporting our steel industry. I have been expressing concern about Liberty Steel since 2021. This is a critical moment, and it will be interesting to see whether private sector investment can be attracted into electric arc furnaces, with electricity prices where they are. I think there is a better solution, which I have spoken about outside this House: merging Speciality Steel with British Steel to create a cohesive, excellent, strong champion of our steel industry that we all support into the future and invest in. That is the way to ensure economic growth in this country.

The official receiver is independent. Of course, we are very interested in this, and are keeping in close touch with the receiver on what comes out of this. The hon. Member’s idea is not necessarily foolish, on this occasion. This is a legal process, and the official receiver legally has to think of the creditors who have suffered throughout—we have to think of them as well, and make sure we do the right thing—but we will continue to do everything we can to make sure that there is a viable future, whatever form that takes.

Like others, I very much appreciate the support being given today and the wider work being done on energy prices, procurement and more. By complete contrast, the Conservative party had no steel strategy, as my hon. Friend the Member for Sheffield Brightside and Hillsborough (Gill Furniss) said, and had a woeful record on steel over 14 years. However, market conditions are particularly tough—a point made to me strongly by trade union representatives at Llanwern steelworks over the summer—so will the Minister ensure that we support the steel industry as a whole, including Llanwern, and that Wales gets its share of the green steel fund?

We talked before Parliament returned about how we can support Llanwern and the work done there. My hon. Friend is right that this is a difficult time for the steel industry. There are headwinds that we need to address: we need to conclude the negotiations with our US counterparts and bring in energy price reductions, which will make a big difference, and we need the steel strategy. We are putting all these things in place. We believe that there is a great future for steel in south Wales, and we will continue to support it.

British warships are made with a mixture of UK and non-UK steel. What impact will this announcement have on that mix, particularly for the Type 26 frigate programme, about which we had some good news earlier this week?

Navantia, which is building three ships, has recently entered into a contract to use Liberty’s steel; that relates to the Dalzell plant in Scotland, so it is unaffected by the announcements we have made today. Of course, I work very closely with my colleagues in the Ministry of Defence to ensure that we use British Steel where we can, and that we have the right infrastructure across the country, producing the right types of steel. We produce some types of steel for defence and not others, and some types of steel for shipping and not others. We need to do everything we can to protect British jobs and produce what we can here in the UK.

It would have enhanced the shadow Minister’s response if he had at least acknowledged that this Government are literally picking up the pieces after the chaotic dismemberment of the steel industry on the Conservative party’s watch. I have worked at Stocksbridge and Rotherham, and I pay tribute to the workforce there—but also to the dedicated steel team in the Department, who I know will have been working long hours in supporting the Minister on this.

The Government now own, control or fund three of the UK’s six steel companies. While a full merger of British Steel and Speciality Steel is one option, at the very least a review of all the assets under the Government’s purview would be a good idea, to see whether we can create more sustainable, investable businesses and reintegrate some of the internal supply chains. Would the Minister consider that?

I thank my hon. Friend for his words, and particularly his thanks to officials in the Department, who are brilliant; I work with them very closely, and they have not had many weekends throughout the whole steel process undertaken by this Government. His expertise is very much welcomed. We will continue to speak about this, as we did yesterday, and to use his expertise. Of course, we need to look at the whole situation. He is right that the Government are now involved in a number of steel companies, although we do not have ownership of any of them, and it is a different kind of involvement in different parts of the country. We are reviewing all that, and we want to see what the best mix is; we will continue to take his advice on that.

The Government have made direct interventions for steel jobs in Scunthorpe and now in Rotherham. That is no comfort for steelworkers in Wales; no similar measures were taken to protect their jobs. Can the Minister explain why her Government will save jobs in Yorkshire and Lincolnshire, but will only help workers in Port Talbot to write CVs and search for new jobs?

As the hon. Lady will know, one of the blast furnaces had already closed by the time we came into government. We had long conversations with Tata about a different model that we had hoped it would pursue. We were unsuccessful with that. We have now improved the outcomes and the support for that workforce, and I was very pleased to be at the first stage of the build of the electric arc furnace at Port Talbot in July, which will secure many thousands of jobs there. We will continue to support Port Talbot with the £500 million that we are investing.

I thank the Minister for her statement, and for the decisive action this Government have taken to safeguard steel jobs across the country. Liberty Pipes is delivering an important contract for the Government’s landmark carbon capture, usage and storage project in our region. Can the Minister provide assurance not only that those jobs in our region are unaffected, but that this project continues at pace?

Liberty Pipes is separate and is not part of this situation at all. Of course, there will be concern in the wider group about the impact—I understand that—but at the moment, there is no crossover. Liberty Pipes will continue to do what it is doing and, I am sure, will continue to support the CCUS industry, which is great news for the workers there, and great news for us.

It is good news that Liberty Steel Dalzell in Scotland is not involved in this immediate crisis, but it is not shroud-waving to suggest that the difficulties in the wider industry may mean that one day it will become involved. When the overdue steel strategy arrives, will it be a 360° look at steel production as a whole, in every corner of this country? Will the Minister help Scottish colleagues get to the bottom of the Scottish Government’s murky deal with this company, which means that they are on the hook for potentially as much as £565 million, a quite incredible sum, which is deeply troubling? The Scottish Government are using the devolution settlement to hide behind. What is going on there? Will she shine a torch of truth on that aspect of the steel industry?

As the hon. Gentleman knows, Dalzell is a separate legal entity, so it is not affected, but he is right to worry about the overall situation and its possible impact on the company. I will look into the point he raised about the Scottish Government and Liberty. We are looking at what the steel industry should look like across the whole of the UK; the devolved Governments are involved in the steel strategy, as well as the unions, the industry and others, so we are taking a holistic view of the whole UK to see what we can do with steel.

The Minister is right to state that the business environment has not been good for the UK steel industry. The main cause for that adverse environment, of course, has been high energy prices—twice as high as those of European competitors and three times higher than those of US competitors. Given that the energy sector reminds us daily that the Secretary of State for Energy Security and Net Zero intends to continue his manic obsession with net zero, which has caused the high energy prices and this environment, how does the Minister hope to attract the private investment that she says is necessary to make the industry bounce back stronger and to grow tomorrow?

Industrial energy prices doubled under the previous Government. The right hon. Gentleman knows that the impact of the Ukraine war on our energy prices highlighted how we are reliant on the global oil and gas market. That is why we are pushing for clean energy by 2030, to take us away from that reliance and to stop such a crisis happening again.

I should point out that the crisis at Liberty is nothing to do with energy prices—it operates electric arc furnaces, so it is not anything do with carbon pricing or anything else the right hon. Gentleman might be referring to. He is right that energy prices are too high, which is why we are intervening. We will see a significant reduction in electricity costs when we extend the industry super-charger from 60% to 90%. As I outlined earlier, in a scenario where Speciality Steel is producing what it was producing a couple of years ago, that will give it upwards of £1.5 million off its energy costs. That is a lot more than the previous Government ever did.

UK manufacturing has been undervalued for far too long. One of the best ways to support industry is to ensure that its cost base is as low as possible. Will the Minister commit to the House that, in 12 months’ time, UK manufacturers will face lower energy costs than today? Will she also rule out further national insurance increases?

UK manufacturing suffered under the previous Government, who had no strategy, did not really believe in it and allowed thousands of jobs to be lost across a range of different industries. This Government are taking a fundamentally different approach: we have an industrial strategy under which we intervene directly to grow the industries of the future, including foundational industries such as steel, which are so important to us for many different reasons. We are also introducing energy price reductions that, for companies such as Liberty that use high levels of energy, will mean significant reductions in their costs by next year. We are introducing an additional energy reduction for a wider group of up to 7,000 companies, which by 2027 will also receive a significant reduction. Again, that is something that the previous Government never did.

I thank the Minister for her statement and for her commitment. On anything that I have ever had to speak to the hon. Lady about, she has always been willing to try to achieve something to give security for jobs, and I thank her for that personally. The fact that some 1,450 jobs are on the line is devastating not only for all the families concerned, but for the subsidiary supply companies and those that rely on high-quality steel for their manufacturing. In Northern Ireland, for example, that includes Harland & Wolff, aerospace and the construction sector. For the future of steel, the sector must continue to win future contracts for our industry. How can she provide certainty in these uncertain days?

I thank the hon. Gentleman for his kind words. He is right to point to the supply chain and the need for us to support not just the key industries, but the whole network of small and medium-sized companies across the whole UK, not just in Northern Ireland. I was in Belfast a couple of weeks ago, and I was delighted to see at Harland & Wolff the building under way of the three ships that are part of the MOD contract with Navantia. I was also pleased to go to Spirit, given our good conversations with Boeing about the future of that site and what it could look like. I also met lots of other parts of the industry. Advanced manufacturing in Northern Ireland is showing the way in lots of new technologies that we need to support. I will continue to support them.