Steel Industry (Nationalisation) Bill

Edward Leigh Excerpts

Committee of the whole House
Monday 8th June 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

I thank the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), for her incredibly generous remarks at the start of the debate. I think we all try our best here with whatever expertise we have; of course, I recognise her expertise in finance, and will aim to address some of the serious issues she raised.

At the heart of the Bill and this debate is the future of our steel industry. The difference in opinion between the Government and the Opposition over the use of nationalisation as a tool of industrial strategy may be irreconcilable, but it is a useful tool—although not one to be used lightly. It is important that it is used in situations of market failure or some other private sector issue, which is certainly the case today. It was also the case when the previous Conservative Government briefly nationalised one of our steel companies, before that led to a failed private sector ownership.

[Sir Edward Leigh (Gainsborough) (Con)]

Yes, the Minister is right: Greg Clark nationalised it. As far as my constituents who work at Scunthorpe are concerned—and, I am sure, those of my hon. Friend the Member for Brigg and Immingham (Martin Vickers)—all we want is a viable Scunthorpe. We do not take an ideological line on nationalisation in this case. Given the problems we are now reading about in respect of electric arc technology in Port Talbot, can the Minister commit that the Government are fully committed to the blast furnaces in Scunthorpe?

[Chris McDonald]

Perhaps I can even give a slightly fuller answer than that. The particular issue with that previous nationalisation by the then Secretary of State was that it was effected merely to create a change of ownership, without actually improving the quality of the business or attracting additional investment into the business at the time. It is important to take this Bill in the full context of our steel trade measures and our steel strategy, which lays out a forward plan for the steel industry. Nationalisation is one of the tools that we can use.

The Government have been clear in our steel strategy that we see a transition to electric arc furnaces over time—there are good reasons for that, not least because they are the most productive and efficient technology available and are reliable and tried and tested—but our intervention in the Steel Industry (Special Measures) Act 2025 and our ongoing support of the British Steel business has been to ensure that we have blast furnace-produced primary steel available as part of that transition. The furnaces in Scunthorpe are the only two working blast furnaces in the UK, and they are currently our only source of primary steel.

The right hon. Member for Gainsborough (Sir Edward Leigh) also raised reports in the press about delays to the project in south Wales. Delays on such a large project are not unusual, but the specific issue in that case was around the groundworks—I would certainly be happy to expand on that more if it becomes part of the debate. I am, of course, in close contact with Tata Steel about that. In my experience of such projects, it is always difficult to understand what the duration of the project will be until it gets out of the ground, and ultimately there are issues with the groundworks there.

Let me move on to address amendment 21 and the issues raised by the shadow Minister. In terms of its structure, the Bill is very much modelled on the Banking Act 2009, which received incredibly broad support. The clauses in part 1 are vital to the operation of the Bill, and I urge the Committee to reject attempts to remove them.

While I understand the consideration that has gone into the preparation of the amendments, narrowing the scope of the definition of a steel undertaking would, in the Government’s view, introduce ambiguity rather than clarity. In practice, there are unlikely to be many undertakings operating at scale in both steelmaking and an unrelated business practice; if there were, the Government would look to exercise powers in a way that focused on what was necessary to operate the steelmaking business. The drafting of the Bill follows on from the text of the Steel Industry (Special Measures) Act. The Government are therefore of the view that amendment 21 is not necessary.

--- Later in debate ---

[Richard Tice]

It is my judgment that the Conservative party’s amendment would prevent the Government from getting on and setting out the vision, placing the investment that is required, and giving the confidence to everybody that there will be a steel-making capability for primary steel. Once we get that investment in the core asset in Scunthorpe—with a refurbished, renewed blast furnace that is ready for the next 50 years—then, with brilliant management from the private sector, we will start to attract private sector capital, which we all want to bring in. This is a moment that requires the proper seed investment, the commitment and the courage from this Government to get on with it, which was so lacking in the previous Administration.

[Sir Edward Leigh]

I agree with a lot of what the hon. Gentleman says. We can surely agree on this point: what is really killing Scunthorpe are the insane green energy policies and the fact that we have the highest energy costs in Europe. If we had a sane energy policy, we could start to make a profit at Scunthorpe.

[Richard Tice]

The Father of the House is absolutely spot on. The net-stupid-zero policies have been catastrophic across the piece, and I fear that those very policies are the reason why people are concerned about the possibility of opening an electric arc furnace. That puts even greater pressure on the need to have a renewed, brilliant, wonderful blast furnace capability for the next 50 years. If we achieve those things, we can bring in private sector capability with a pro-British procurement strategy. That will give confidence to all.

It has been mentioned that the Bill would somehow prevent other investment from the private sector. The discussions that I have had with overseas pension funds and overseas sovereign wealth funds suggest exactly the opposite. They suggest that, with this sense of commitment—what I like to call a joint venture with the core asset, under public ownership—we will attract more international investment, because people will know that there is a long-term commitment as opposed to the wibbly-wobbly, flip-flop approach of previous regimes. That is the reason that we need to get on with this. We need to ignore any delaying amendments.

Let us have the vision. New clause 5 would require the Government within three months to set out that 10-year vision and 10-year commitment to the blast furnaces and others in the steel undertaking, to ensure that we have a vibrant and, ultimately, viable primary steel-making capability in the United Kingdom.

UK Steel Strategy

Edward Leigh Excerpts

Thursday 19th March 2026 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

I suspect that the problems of Scunthorpe, where many of my constituents work, are less to do with the anti-protectionist policies of Mrs Thatcher—given that she left office 36 years ago—and more to do with the fact that Scunthorpe is paying the highest energy costs of any steelworks in Europe. That is very important. Will the Secretary of State answer the question of my constituency neighbour, my hon. Friend the Member for Brigg and Immingham (Martin Vickers), and of all our constituents who work at Scunthorpe? Blast furnaces only have six or seven years of life, but we need them to make virgin steel, particularly in the defence industries. Is this the end of our ability to make virgin steel? Given that it takes two or three years to create an arc furnace, will the Secretary of State commit to one at Scunthorpe?

Andrew Mountbatten-Windsor

Edward Leigh Excerpts

Tuesday 24th February 2026 Commons Chamber

[Chris Bryant]

Yes, he left his post in, I believe, July 2011. It could not have come soon enough for many of us, and it is a regret to many that the Government were not able to listen faster and act faster at that time.

What this whole sorry saga shows is that deference can be a toxic presence in the body politic. Of course we always seek to respect others, and we look for the best in others. There is another instance in that Adjournment debate that illustrates the generosity that we often show. The right hon. Member for New Forest East (Sir Julian Lewis), whom I told that I was going to raise this, and who is a gentleman to his fingertips and always a very magnanimous fellow, asked:

“Does the Minister agree that one reason why the Duke of York has considerable credibility is his distinguished record as a former member of the Fleet Air Arm who gave valuable service in the Falklands war? That shows a degree of commitment over and above any inherited responsibilities that he might be considered to have.”—[Official Report, 3 May 2011; Vol. 527, c. 650.]

Of course I understand the point that the right hon. Member was making back then, but the fear is that when deference tips over into subservience it can be terribly dangerous, because the victims are not heard, respected or understood in the same way as those with grand titles, and that—as the right hon. Member for Kingston and Surbiton said—has implications for this House. The conduct of business in the House is entirely a matter for you, Mr Speaker, interpreting “Erskine May” and the Standing Orders with the Clerks. I only repeat the words of Paul Flynn in 2011, when he denounced what he called

“censorship on hon. Members discussing an issue of great importance”.—[Official Report, 17 March 2011; Vol. 525, c. 156WH.]

I know that you too, Mr Speaker, would want to denounce such censorship.

Let me issue one caveat about the motion. The Government will of course comply with the terms of the Humble Address in full—as I have said, we support the motion—but, as the House will know, there is a live police investigation of the former Duke of York following his arrest on suspicion of misconduct in public office. The House will also be aware that following that arrest on 19 February, Buckingham Palace issued a statement on behalf of the King. His Majesty emphasised that

“the law must take its course”,

and that the Palace would provide its

“full and wholehearted support and co-operation”.

The statement concluded with a commitment that His Majesty and the royal family would continue in their duty and service to the nation, and I am sure the whole House will support that sentiment.

As the police have rightly said, it is absolutely crucial that the integrity of their investigation is protected, and now that these proceedings are under way, it would be wrong for me to say anything that might prejudice them. Nor will the Government be able to put into the public domain anything that is required by the police for them to conduct their inquiries unless and until they are satisfied. I am sure that the right hon. Member for Kingston and Surbiton will agree with that point.

[Sir Edward Leigh (Gainsborough) (Con)]

I agree with everything that the Minister is saying, but what is worrying quite a lot of us, in relation not just to Andrew Mountbatten-Windsor but to Mandelson, is that because of the ongoing police investigations and because the wheels of justice grind exceedingly slowly, it may be years before we see any of these papers. I would like an assurance from the Government that—notwithstanding what the Minister has just said about the police investigation—they will do their utmost to ensure that there is full transparency, because scandals are made much worse by any sense of a cover-up.

[Chris Bryant]

I could not agree more. I want to ensure that we move as fast as we possibly can, but I also want to ensure that justice happens, and I do not want to do anything that would undermine the police investigations. I hope that the police will be able to move as swiftly as possible, and we will certainly co-operate with them as swiftly as possible. It is worth bearing in mind, however, that most of the documents that might be envisaged are 25 years old—some are a bit more recent—they may be substantial in number, and many will be in hard copy. I hate to add to the right hon. Member’s fears about the speed with which things may happen, but I think we all want to ensure that we do all this in a proper fashion.

Industry and Exports (Financial Assistance) Bill

Edward Leigh Excerpts

2nd reading
Monday 15th December 2025 Commons Chamber

[Chris Bryant]

That is an extremely good point. The creative industries are, of course, one of the eight key industrial sectors that we are keen to promote. The music export growth scheme is specifically intended to ensure that a wide variety of acts are able to tour around the world. We need to sort out with the European Union the issue of British acts being able to tour effectively and cost-effectively around Europe, but bands from Scotland, Wales and every part of England have been able to access that finance, and it is a key part of what we do.

As for fashion, I know that you try to do your bit, Madam Deputy Speaker—as, I am sure, do all Members who want to promote British fashion—but it is important to note that the Department for Culture, Media and Sport provides support for NewGen. A fair amount of London Fashion Week is supported by either the Department for Business and Trade or the DCMS, and many NewGen designers have gone on to achieve great success in the market. We also try to ensure that we have a presence in other fashion weeks, such as those in Paris and New York, and we provide other finance as well. There is a wide variety of measures, some of which are covered by the Bill, but I can assure my hon. Friend that the creative industries are very much part of what we are considering. I was struck by, in some—oh, I am not allowed to refer to those matters until tomorrow.

[Sir Edward Leigh (Gainsborough) (Con)]

Will the Minister give way?

[Chris Bryant]

I am very grateful to the right hon. Gentleman for shutting me up.

[Sir Edward Leigh]

Believe it or not, more than 30 years ago I was a Minister for fashion and regional policy. These things go round in a circle, and I warn the Minister —with some experience of this—that many companies were caught in a sort of Catch-22: if they were too successful, the Department of Trade and Industry would not let them be helped, and if they were not successful enough, there was always a risk that they might go bust. How is the Minister going to hit the sweet spot and make sure that we direct the money to where it is most needed?

[Chris Bryant]

Well, I hope that I can find the right hon. Gentleman’s sweet spot, as he is such a dedicated follower of fashion. He has made a very fair point. This is the classic problem for Governments when it comes to any industrial support, whether it is a loan or a grant: if the business is so successful, why does it need additional financial support? That is why, because of the structure that we have created through those two Acts, UK Export Finance actually makes money for the British Government. It is based on loans being made at normal rates, and sometimes it manages to lever in retail finance as well, which is a particularly important part of its work. However, when we provide a grant we have to ensure that it is intended to achieve a set series of aims. For instance, the £128 million—I think—that has been given to BioNTech is specifically designed to develop two new R&D hubs producing 400 new highly paid jobs in the life sciences sector, and also, incidentally, to tackle skin conditions and melanoma, which are among the subjects on which it is working.

The right hon. Gentleman is right to say that a difficult moment often arises, but one of the complaints I have received from quite a few sectors is that the UK can be a bit slow about deciding when we are going to support someone, and I want to be able to speed up that process as much as possible. As I said to the hon. Member for Strangford (Jim Shannon) and the hon. and learned Member for North Antrim (Jim Allister), I think the key to much of what we are trying to do involves supporting SMEs. Of course there will be massive contracts, such as the $3.5 billion expression of interest that we have allowed for the building of the new Dubai airport so that British businesses will be able to put in for some of the ensuing tenders—perhaps for hangar doors, the building of additional facilities, maintenance services or architectural designs. However, 88% of what we are talking about in respect of UK Export Finance is for SMEs.

I will make two more points, and then I will come to a close. Through existing provisions in the Industrial Development Act, the British Business Bank’s northern powerhouse investment fund II has directly invested £115 million in more than 300 small businesses. Similarly, in the midlands, the midlands engine investment fund II has launched a £400 million fund to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.

I am getting a feeling from the Chamber that everyone will be supporting the Bill. I think that, broadly speaking, it has cross-party support, and I think it important that we get it on the statute book soon enough to be able to provide that support for the businesses in the UK in the next financial year, so that we can prosper, grow the economy and protect jobs.

Oral Answers to Questions

Edward Leigh Excerpts

Tuesday 18th November 2025 Commons Chamber

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

Earlier, the Minister said that only 0.4% of land is being taken by solar, but he knows that in the Gainsborough constituency the number is far higher, because I went to see him—he was most gracious and reasonable. He will know that 14,000 acres around Gainsborough will be taken from some prime agricultural land. Just to be reasonable, will he have a look at this again and try to take all these solar applications together?

[Michael Shanks]

Let me say that the Father of the House was also very reasonable in the meeting that we had; I am glad that we had that opportunity. If we hit the absolute ambition of the solar roll-out, we will have 0.4% of land, but as I said to him, I recognise that a number of projects in particular areas have not been strategically planned for a long time. That is why we are bringing forward the strategic spatial energy plan, so that we plan the system across the whole of Great Britain and so that communities feel that things are being done not to them, but with them.

Jaguar Land Rover Cyber-attack

Edward Leigh Excerpts

Tuesday 9th September 2025 Commons Chamber

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

I congratulate the hon. Gentleman on surviving the reshuffle. This Minister adds to the general merriment of the nation, so we will miss him when he’s gone—[Laughter.] We’re all mortal. May I ask a serious question about the public sector? As it happens, I am an enthusiast for the Prime Minister’s idea of a national digital ID card as a means of countering illegal working, but it raises a whole new spectre if tens of millions of people have an ID card on their mobile phone in their pocket and malign forces—Russia and elsewhere—seek to attack us. What work are the Government doing with their Bill and in the National Cyber Security Centre to try to get this right?

[Chris Bryant]

The right hon. Gentleman is right on two points, and to take his point a little further, data is a wonderful thing—a gold mine, in many ways—but it is also a potential vulnerability. We must ensure that if we take people into a digital future, with digital ID cards—I am not saying that we are, but if we were to go down that route; or wherever we go, for instance with a digital driving licence, which we will have soon—we must ensure that it is safe, secure, and that people’s data is not imperilled.

I do not know what the right hon. Gentleman meant about me surviving. I love him too.

British Steel

Edward Leigh Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Sarah Jones]

I agree with my hon. Friend’s comments about the tireless work of our hon. Friend the Member for Scunthorpe on securing the future of British Steel. The Secretary of State went to the British Steel site in Scunthorpe just after the legislation was passed. I think it is fair to say that there was great relief after our intervention, but workers will also quite rightly be asking us, “What happens next and how will you secure the future of the site?” We are now completely focused on that.

[Sir Edward Leigh (Gainsborough) (Con)]

Let me ask a question on behalf of my constituents who have sweated blood to keep the blast furnaces going. Unfortunately, as we know, electric arc technology cannot make virgin steel—only blast furnaces can do that. Are the Government 100% committed to maintaining our permanent ability to make virgin steel?

Steel Industry (Special Measures) Bill

Edward Leigh Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

I have just come off the phone to Tom Smith, the trade union convenor at the blast furnaces, on behalf of my many constituents who work next door in Scunthorpe. My primary concern today is with the nearly 3,000 people who work in this plant. Let us be clear: we have been making the best quality steel in the world for 135 years in Lincolnshire, and we intend to go on doing it. We are not going to allow cheap, inferior Chinese steel to kill off our industry. The workers of Scunthorpe are breathing a sigh of relief.

We can be party political. I have to say that I thought the Chairman of the Business and Trade Committee made an excellent speech—he was positive and talked in strategic terms—but I do not know what the Liberal Democrat spokesman, the hon. Member for St Albans (Daisy Cooper), achieved by constantly attacking the Conservative party on what is a very complex issue. Of course we can be criticised because we sold this company to Jingye—yes, I agree—but how many voices on the Liberal Democrat Benches were speaking up at the time? Were they speaking up when Greg Clark, our then Business Secretary, paid the wages of the Scunthorpe steelworkers for many months? Were they speaking up when we saved Sheffield Forgemasters? This is a highly complex issue and we should be working together, so I support the Bill.

I know that we can be critical of the Government. Perhaps we should have acted sooner—my hon. Friend the Member for Brigg and Immingham (Martin Vickers) has been raising this point; I was sitting beside him at the end of March when he raised it and called for nationalisation of the industry—but we have now got to work together to save our steelmaking capacity.

We know, though, that this Bill is a bit of a sticking plaster. It is quite dangerous. Quite extensive powers are being taken by the Government, so there has to be a sunset clause. We are giving unprecedented powers to the Government. We can criticise them for not acting sooner, but this is a sticking plaster on a gaping wound.

Let us be honest: steelmaking in this country is under extreme stress. And why is that? Why are we loading the most expensive energy costs on to our own steel production? Why is Scunthorpe paying almost twice as much in energy costs as those in South Korea or in America? High energy prices make UK steel expensive to produce and uncompetitive versus that produced by our European counterparts. In 2024-25, the average price paid by UK steelmakers was £60 a kWh, compared with the German price of £50 and the French price of £43. We are making our own steel industry uncompetitive. We have to stop these green energy costs. We have to be realistic. The Secretary of State for Energy Security and Net Zero has now left, but we need to get real. We can take steel into public ownership now, but if we go on loading costs on our industry, we will have to come back month after month and year after year.

We will support the Bill, although we want a sunset clause. But we have to get real about China, too. Was it not obvious for weeks and, indeed, for months? This is a so-called private company, but there is no such thing as a private company in China. They are all under the cosh of the Government, under an autocratic regime. What do they care about the steelworkers in Scunthorpe? What do they care about our national interest? Never again, colleagues, must we allow such a strategic industry to fall into the hands of the Chinese, the Russians or anybody else.

[Ms Polly Billington (East Thanet) (Lab)]

Will the right hon. Gentleman clarify whether he was aware that the Chinese company that is now in possession of British Steel was sold it by a Conservative Government of which he was part?

[Sir Edward Leigh]

Of course I am, because I just said that. I have just admitted that it was a mistake, but I ask everybody what they were saying at the time. Of course, there is silence. It is easy to be wise after the event, but I am worried about my steelworkers—I am worried about their future.

[Sir Iain Duncan Smith]

rose—

[Sir Edward Leigh]

I give way to our former leader.

[Sir Iain Duncan Smith]

I want to make sure that my right hon. Friend puts the record straight: some of us on the Opposition Benches warned the then Government that it was wrong.

[Sir Edward Leigh]

There we are: some of us apparently warned the Government. I do not know how many.

We now know the true nature of our Chinese friends. We support the Bill. Let us make our steel industry really competitive again and let us make Great Britain great again.

[Several hon. Members rose—]

Product Regulation and Metrology Bill [Lords]

Edward Leigh Excerpts

2nd reading
Tuesday 1st April 2025 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

This is all very important. There has been some merriment about the pint, but in the novel “Nineteen Eighty-Four” by George Orwell, the hero goes into a pub, and somebody there laments the fact that the despotic regime has just abolished the pint and forced people to drink litres. The road to serfdom is paved by many steps such as this. By the way, when I was Minister for consumer affairs many years ago, we regularly banned things. We did not need this Bill.

[Andrew Griffith]

My right hon. Friend makes the perfect point that this is precisely what the road to serfdom looks like, whether it is serfdom to an individual Minister at a moment in time or serfdom to an unelected Brussels bureaucratic elite. Why would we give up the powers of this House, the reason why we are sent here, and the ability to hold the Government to account?

Scunthorpe Steelworks

Edward Leigh Excerpts

Thursday 27th March 2025 Commons Chamber

[Madam Deputy Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

Scunthorpe neighbours my constituency, and many of my constituents who work there will be desperately worried today. This is a vital national interest—a crisis. For the past 150 years, wars have been won by states that can make virgin steel. Will the Government do anything—tariffs, or the Secretary of State going up to Scunthorpe now to negotiate directly with the company—to ensure that we keep our vital national interest going, which means blast furnaces?

[Sarah Jones]

As the right hon. Gentleman would expect, the Secretary of State is and has been talking to Jingye, as have I and officials. Those negotiations will continue. The site at Scunthorpe produces a lot of different types of steel, as he will know. It provides 95% of all steel used by Network Rail. It is incredibly important in that sense, and he is right to draw attention to that. There are many different ways of making steel. On the primary steel point, we are investigating the merits of investing in direct reduced iron, which is when hydrogen is used instead of the old blast furnaces. The reality is that the Scunthorpe blast furnaces are old infrastructure—decades old—that needs updating. We need to move to new technology, and that is what we are trying to do with Jingye.