British Steel

Lord Redwood Excerpts

Monday 20th July 2026 Lords Chamber

[Lord Leong (Lab)]

My Lords, the Government’s current view is that, given British Steel’s history of loss-making and its poor financial position, the commercial value of the business today is nil. However, compensation will not be decided by ministerial assertion. Regulations will be laid in the autumn to appoint an independent third-party valuer. That valuer will assess what compensation, if any, is owed and the Government will abide by that process.

[Lord Redwood (Con)]

On nationalisation, have the Government also taken responsibility for the historical debts and borrowings, pre-spring 2025, that the company incurred under Chinese owners? That is a very large historical debt that we should not have to share.

--- Later in debate ---

[Lord Leong (Lab)]

My Lords, the Government recognise that some specialist grades of steel used in precision engineering, aerospace, defence and advanced manufacturing are not currently produced in the UK, or are not produced in the required quantity or to the required specification. The steel strategy aims to increase the proportion of UK demand met domestically, including for specialist needs, as my noble friend mentioned. British Steel’s new board will need to consider how the company supports a wider industrial strategy and the needs of downstream manufacturers.

[Lord Redwood (Con)]

Can I confirm that the Minister said yes when I asked whether the state is taking responsibility for all the historical debts and borrowings?

[Lord Leong (Lab)]

My Lords, I said in my previous answer that we will abide by the independent valuer’s final valuation.