Steel Industry (Nationalisation) Bill

Debate between Andrew Griffith and Jonathan Brash

2nd reading
Thursday 21st May 2026 Commons Chamber

[Andrew Griffith (Arundel and South Downs) (Con)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a Second Reading to the Steel Industry (Nationalisation) Bill because it believes that politicians should not be running businesses; because expropriating businesses sets a precedent that will deter inward investment into other UK businesses; because the Bill exposes taxpayers to unlimited liabilities; because the powers that the Bill confers on Ministers are far wider in scope than would be required for its stated purpose; and because it fails to contain any measures that would address the issues which are currently making domestic production of steel unprofitable such as higher employment costs and policies in pursuit of net zero, such as carbon taxes and associated regulations and levies.”

Conservatives will never be neutral about the deindustrialisation of our country, but we do not believe that politicians or Whitehall bureaucrats should run businesses. Instead, we need a Government who do fewer things better, such as defending our nation, securing energy supplies and restoring the nation’s finances. We believe in British steelmaking and the importance of sovereign capabilities—not just steelworks, but the steel supply chain, critical minerals and many defence- related technologies—but that is not what this Bill does. This Bill is the Government’s attempt to break out of a mess we warned one year ago they were getting themselves into, and it fails even in the Government’s own terms. It does not keep the blast furnaces open and it does not guarantee that military needs can be met domestically.

Let us be clear what we are doing today. We are being asked to nationalise British Steel, and put the British taxpayer permanently on the hook for a business that this Government had every chance to keep in private hands, but chose not to. They ignored plans to open electric arc furnaces on Teesside, and chose to let the situation deteriorate until the only option left was the one that suited their ideology. The Prime Minister went kowtowing to China, gave it an embassy spy base and, instead of a deal on Jingye, came back with a box of fortune cookies with only a bill for the taxpayer to be found inside.

[Mr Jonathan Brash (Hartlepool) (Lab)]

I just wish to seek some clarity from the hon. Gentleman. Is the Conservatives’ position that they would prefer British Steel in the hands of the Chinese than the British?

[Andrew Griffith]

That was a waste of an intervention. If the hon. Member lets me continue, I will explain exactly what the Conservative plan is for British Steel, and it is a better plan and a more sustainable plan than we have heard from the Secretary of State today. This Government did not inherit—

[Andrew Griffith]

When it suits the hon. Gentleman, he claims to be a fan of the late Margaret Thatcher, but he seems to have forgotten that most of her time in office was spent untangling the mess of Labour’s past nationalisations. Unlike him, she did not bend with the wind or find herself in the same Lobby as a Government who have hiked taxes to record highs, driven wealth offshore and drowned business in red tape.

Members would like to know what our plan is, and our plan is to address the cause, not the symptoms. [Interruption.] Labour Members would do well to listen to this, and we might have more of a steel industry left if they do. We cannot have an industrial policy for steel without an energy policy for industry. Britain has the highest industrial electricity prices in the world, and every choice the Government are making has pushed those prices further up. This week, they voted against new licences in the North sea, choosing to import from Norway gas that could be drilled here, at a cost of 200,000 jobs and £12 billion in tax revenue.

The Secretary of State knows this and his Back Benchers know this, but the Prime Minister is too weak to stand up to his windmill-fetishist Energy Secretary. We have offered an alternative. Our cheap plan would slash energy prices and improve energy security. Why would the Government not want that? If they were genuinely interested in securing the future of steelmaking, as well as those of many other industries, they could have come here today and adopted that plan. Instead, this Bill is an indictment—

[Mr Brash]

Will the hon. Gentleman give way?

[Andrew Griffith]

I will happily give way, as long as the hon. Member is going to talk about our cheap energy plan.

[Mr Brash]

I have heard that the hon. Gentleman thinks energy prices should come down, and we do not disagree on that, but he still has not answered my question. Does he think British Steel should remain foreign-owned—yes or no?

[Andrew Griffith]

The only way we are going to have a sustainable steelmaking industry in this country, and the same applies to the manufacturing sector and our defence supply chain, is lower energy costs. That is the only sustainable way.

[Mr Brash]

Yes or no?

[Andrew Griffith]

We have a plan for sustainable steelmaking. The Government do not have a plan for sustainable steelmaking. Ministers themselves have admitted that the blast furnaces in Scunthorpe will close. They are reverting to a plan that already exists.

The Bill is an indictment of this Government’s modus operandi—a spray and pray Government who write blank cheques from the taxpayer and call that a strategy. We are doomed to relearn the hard lessons of the 1970s: if it moves, tax the hell out of it; when it stops moving, subsidise it. It was socialist idol Tony Benn who wanted to nationalise everything that moved, and one result that the Government may care to look at was the state-owned Kirkby Manufacturing and Engineering company, which simultaneously made car radiators and orange juice. When the Government last ran British Steel in the late 1970s, the company’s losses hit £1.3 billion a year. Since Labour’s botched nationalisation of just a year ago, it has already spent £500 million of taxpayers’ money—£1.3 million a day.

Where is the Government’s published, costed and scrutinised plan for what nationalised British Steel will look like in five years’ time, or even in one year’s time? I have read the Bill and there is not one. There is no provision for a proper impact assessment before the sweeping powers are used. There is no acknowledgment of the monumental decommissioning liabilities—in the billions—that will sit on the Treasury’s balance sheet. There is a sunset clause, but it can be extended indefinitely by Ministers—a sunset where the sun never sets.

The House deserves better than this. We deserve a Bill with a proper thought-through plan. The Government have turned a negotiation into a crisis, a crisis into an emergency and an emergency into this nationalisation. We know that Ministers, however well-meaning, will be unable to resist using their power to tilt the playing field in favour of steel businesses that they themselves own: no longer the referee, they will be on the pitch wearing one of the teams’ shirts. There is no better example of that than their plans on steel tariffs.