Speciality Steel UK: Insolvency

Bradley Thomas Excerpts

Tuesday 2nd September 2025 Commons Chamber

[Sarah Jones]

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.

[Bradley Thomas (Bromsgrove) (Con)]

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?

[Sarah Jones]

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.