Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential impact of British Steel entering liquidation during or after the period of special measures under the Steel Industry (Special Measures) Act 2025 on creditors; and what mechanisms are available for them to recover outstanding debts.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
It would be a breach of the Steel Industry (Special Measures) Act for British Steel to be put into liquidation while the special measures are in place. Prior to the Act becoming law, the Government undertook assessments of the potential cost to the public purse should British Steel enter insolvency. These assessments would be updated in the unlikely event that liquidation became a serious prospect.
Creditors of British Steel whose credit predates the special measures are protected by the security interests they obtained at the time their credit was advanced. Any parties wishing to extend credit to British Steel during the currency of the special measures will need to consider the most suitable arrangements upon which they would be willing to do so. British Steel management and DBT can discuss any such proposals as the need arises.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 7 May 2025 to Question 46621, whether he has made an estimate of the potential cost to the public purse of British Steel entering liquidation during the period of special measures under the Steel Industry (Special Measures) Act 2025.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
It would be a breach of the Steel Industry (Special Measures) Act for British Steel to be put into liquidation while the special measures are in place. Prior to the Act becoming law, the Government undertook assessments of the potential cost to the public purse should British Steel enter insolvency. These assessments would be updated in the unlikely event that liquidation became a serious prospect.
Creditors of British Steel whose credit predates the special measures are protected by the security interests they obtained at the time their credit was advanced. Any parties wishing to extend credit to British Steel during the currency of the special measures will need to consider the most suitable arrangements upon which they would be willing to do so. British Steel management and DBT can discuss any such proposals as the need arises.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether company directors will be indemnified from wrongful trading liability under the Steel Industry (Special Measures) Act 2025.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
If required, the Government would provide an indemnity from any possible wrongful trading liability to any company director appointed by Government under the Steel Industry (Special Measures) Act 2025, or who had followed instructions from the Secretary of State for Business and Trade given pursuant to that Act. Whilst we recognise that there is a theoretical possibility of a wrongful trading claim against any such individuals relating to the period of special measures, it is not the intention of the Government that British Steel enters liquidation, which is the circumstance in which a wrongful trading claim could arise.
Any company directors not appointed by Government, and/or who had not had access to company systems and processes by direction of the Secretary of State under the Steel Industry (Special Measures) Act 2025, would very likely have a good defence to any claim for wrongful trading brought later by a liquidator relating to any period when the company was under special measures. It is a matter for those directors to seek advice and take whatever steps they consider appropriate in the circumstances.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what discussions he has had with Sri Lankan authorities on strengthening business relations for British citizens who have set up companies in Sri Lanka.
Answered by Douglas Alexander - Minister of State (Cabinet Office)
DBT has a team dedicated to supporting the UK-Sri Lanka trade and investment relationship. Officials have regular contact with Sri Lankan authorities through the annual UK-Sri Lanka Strategic Dialogue to promote areas of mutual interest, including bilateral discussions on trade and investment.
My officials use programmes and levers to strengthen business relations for UK companies, including working closely with the Council for Business with Britain to support the removal of barriers to trade, and the Developing Countries Trading Scheme, which cuts tariffs and simplifies trading rules for Sri Lankan exports to the UK.