Steel Industry (Special Measures) Bill

Dawn Butler Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Jonathan Reynolds]

I think I must progress, Mr Speaker. I can see your indication to do so.

[Dawn Butler (Brent East) (Lab)]

Will my right hon. Friend give way?

[Jonathan Reynolds]

I will take one more intervention.

[Dawn Butler]

I thank my right hon. Friend for giving way and for the considered way in which he is looking after the national interest. The steel unions—the GMB, Community and Unite—would like clarification that any board that is set up will have at its heart the steelworkers who have kept the steelworks going through thick and thin.

[Jonathan Reynolds]

We remain in close engagement with all the unions, which have been monitoring the situation closely. Again, I reiterate that the Bill is not in itself about a change of ownership; it is about a change of control to rectify the situation. However, I will certainly have regard to the comments my hon. Friend has made and, of course, the role of the workforce at all stages.

We will never accept the argument that steelmaking is a sunset industry. Steel is vital to every bit of the modern economy. Domestic demand for steel is set only to go up, not down. In the past few weeks alone, we have seen Heathrow airport announce multibillion-pound expansion plans requiring 400,000 tonnes of new steel, and Universal Studios confirm it will be building Europe’s biggest theme park and, where possible, will use UK-made steel to do so. This Government are backing the builders, not the blockers. With the action we take today, we have the chance to feed that boom with steel made in Britain.

The legislation we are setting out today will help to end the uncertainty that has been hanging over British Steel’s Scunthorpe site for too long. I welcome the Opposition’s support today for this recall, but this issue should have been resolved years ago. I believe they may now view it as a mistake to have given this essential national asset to this company.

I have to address the statement made by the Leader of the Opposition yesterday, which I do as a matter of genuine regret. She claimed that while she did my job, she negotiated a modernisation plan with British Steel to build an electric arc furnace at Teesside, followed by one at Scunthorpe. I wish to make it unequivocally clear to the House that the new Government inherited no such deal. We could not renege on that deal because it did not exist. On day one, I was told that there had been a lack of progress on this matter to date.

--- Later in debate ---

[Andrew Griffith]

I will make some progress.

It did not need to be this way. My hon. Friend the Member for Brigg and Immingham (Martin Vickers) has been warning of a growing threat since last September. The Mayor of Tees Valley has been asking the Government to present their plan for steel for months. Rob Waltham, the leader of North Lincolnshire council, has done all he can to support steelmaking in Scunthorpe. And, on 4 April, Ed Conway of Sky News showed the world that we were just days away from the risk of the furnaces shutting down. But the Government did not listen and they did not act.

It has been almost 10 days since Parliament last debated substantive Government business. Rather than this rushed, one minute to midnight Bill, we could have used that time for proper debate, proper process and proper scrutiny. This is indefensible incompetence. Despite years to prepare, it is clear that the Government came into office with no plan. There is no steel strategy, there is no industrial strategy, there is no export strategy, and now we have this botched nationalisation.

The Secretary of State says that his preference is to find a commercial partner, but let us be serious. Do the Government think that is likely, after attacking business with a £25 billion jobs tax and his Bill to create the most hostile environment for employers since the 1970s? On the Chancellor’s watch, in case she has not noticed, all the flow is of investors leaving this country.

[Dawn Butler]

I am still a little confused about the deal negotiated by the last Government. As the Leader of the Opposition did not answer, could the hon. Gentleman please clarify the situation for the House?

[Andrew Griffith]

I am not surprised that the hon. Lady is a little confused; as I said, the Government have failed to lay out their plan and to afford this House the opportunity to debate it. Everything that we have heard this morning says that the Government have not really thought this through. Steelmaking is complex, intense and highly operational. Iron ore has to reach thousands of degrees to become molten iron. It is a dangerous process that poses a serious risk to health. In Birmingham, Labour struggle to collect the bins—