British Steel: Nationalisation

Lord Fox Excerpts

Thursday 12th November 2026 Lords Chamber

Asked by

[Lord Fox]

To ask His Majesty’s Government what changes British Steel has made since nationalisation in relation to its products and markets, operational costs, raw material supplies, and investments.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation, Science and Trade (Baroness Lloyd of Effra) (Lab)]

My Lords, since nationalisation, the new British Steel board, led by Alan Lovell, has been working with British Steel management to stabilise the business, understand the cost base and challenge management to bring forward proposals to manage costs. Securing the long-term future of British Steel will take time and the board will bring forward a plan for transformation to the Government as quickly as possible.

--- Later in debate ---

[Lord Fox (LD)]

I thank the Minister for that Answer. This Question is about day-to-day operational costs. In March this year, the National Audit Office put those costs to the taxpayer at £1.3 million a day. What are the financial targets that we, the shareholders, are putting on British Steel? We want British Steel to succeed, but it needs to perform better to do that. It is good that the management is planning ahead, but what is it doing operationally, day to day, to drive down costs?

[Baroness Lloyd of Effra (Lab)]

My Lords, since nationalisation, British Steel has taken practical steps on-site to stabilise operations and reduce costs. The management team is reviewing all material spend items in implementing saving opportunities. It is also investing in critical health and safety and operational issues on-site. This includes vital maintenance of the blast furnaces to support safer, more cost-effective operations.