Steel Industry (Nationalisation) Bill

Luke Myer Excerpts

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

[Ann Davies]

I thank the right hon. Gentleman for his intervention. Some £500 million has been ringfenced for Port Talbot; that money is rapidly gone, with no benefit to the local community, but that is another issue that I will not talk about now.

We want an end to the double standard. Welsh steel must be given the same guarantees as English or Scottish steel. What we want is equality for all the sites across the UK; we want the same security and the same commitment to preventing closures and safeguarding jobs.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

I am delighted to welcome the Bill, and will speak to a couple of the new clauses and amendments. I declare my role as chair of the all-party parliamentary group on steel and metals-related industries, through which it is a pleasure to work cross-party in the interests of the industry.

Just outside Middlesbrough, wedged between the gas pipes and the railway, is an old path. Someone walking there 200 years ago would have found sailors trudging through salt marsh hamlets, and 100 years ago they would have found steelworkers—hundreds of them—walking home on the tired commute. The cinders underfoot gave the path its name: “the black path.”

If someone walks that path today, they will see the remnants of a bygone age for Teesside iron and steel. They will see a former railway station, now disused, which was used for industry. They will see a lost ironworkers’ village and the red wild flowers that thrive on former slag pile soil. And, of course, they will arrive at one of the largest brownfield sites in Europe: the former Redcar steelworks, which once stood as a great shadow on our skyline, the heart of the region, pumping out steel across the world.

The phrase on Teesside goes, “We built the world.” Everything from the Sydney harbour bridge to the Churchill War Rooms were made with Teesside steel. It can never be forgotten that, in 2015, the then Conservative Government’s laissez-faire approach to Chinese steel dumping denied us the intervention that we needed on Teesside. The closure of Redcar steelworks tore a hole through our region and cost thousands of jobs. I pay tribute to my constituency neighbour, my right hon. Friend the Member for Redcar (Anna Turley), who at that point was a newly elected MP and fought tirelessly for the workers of Teesside, but we can never allow a situation like that to happen again.

We cannot change the past, but steel is not our past, as the workers at British Steel Special Profiles at Skinningrove in my constituency will tell us, or the workers at Teesside beam mill at Lackenby, along with the many supply chain SMEs on Teesside. Having run a Teesside steel company for many years, the Minister for Industry knows that landscape well. I commend the decisions that the Government have taken, particularly on British Steel, that have protected and safeguarded jobs in my constituency and my region.

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[Graham Stuart]

The hon. Gentleman is giving a powerful speech and showing great expertise. Is he confident, as so many critics of the steel plan were not, that the £2.5 billion that has been found by the Treasury is sufficient to allow the interventions that he so enthusiastically supports? If it is not, is there not a danger that we will not invest in things, but just bleed out public cash on facilities that continue to be uncompetitive and do not get renewed? If we do not put the right resource in, as France and other countries have arguably done, we will be losing out and not winning.

[Luke Myer]

As a Back Bencher, I will always fight for more funding to modernise our steel industry. What I do know is that the current owners of British Steel are not responsible owners. We saw last year the crisis that was created when they failed to provide sufficient supply to keep the blast furnaces running. We cannot allow the current situation to continue if we are to protect our domestic industry. This Bill is about having the powers to nationalise and ensure that the national interest is served. Whether there is sufficient funding is a question on which I will continue to push the Government.

We are not focusing today on clause 58, but the freedom to make the necessary fiscal decisions to support operational stability and competitiveness is fundamental to the sunset clause we are discussing, as well as the potential for ongoing considerations on other critical assets that the Bill might be used for. It would be helpful to hear more about the Government’s intentions on issues like energy and procurement, as my hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland) said. We had a positive intervention from the Cabinet Office last year and the ambition to increase domestic steel market share back towards 50% is right, but the test will be in the delivery.

For too long, we have had industrial strategies while approving publicly backed projects that import vast quantities of overseas steel. Taxpayers rightly expect public investment to strengthen British industry and British jobs. Mechanisms like contracts for difference and other subsidy schemes must align much more closely with procurement objectives, so that public money genuinely supports UK supply chains. The forthcoming defence investment plan is a major opportunity to ensure that we are using UK steel across the country in industrial communities to support national security. At the end of the day, economic security is national security. Britain cannot become dangerously dependent on overseas steel for critical infrastructure or defence capability.

While I support the shift to electric arc furnaces and the increased focus on how we use domestic scrap, which is welcome, Britain should seek to retain some primary iron capability. Other countries are investing heavily in technologies like direct reduced iron. We need only look at Luleå in northern Sweden, for example, where an operational hydrogen-powered DRI facility is already producing steel. That has not held the region back in any way. Economically, it has had the opposite effect of attracting inward investment in new industries, from data centres to clean power. I would like to hear a little from the Minister about DRI and whether we will be looking seriously at that, but I do not wish to stray too far out of the scope of the Bill.

The legislation was brought forward in the context of British Steel, but we should not pretend that British Steel is the only critical asset that may ever require Government action. There may be other sites, capabilities and parts of the supply chain where future intervention is needed to protect jobs, sovereign capability and the national interest, so my concern with amendment 12 is that it would make these powers too easy to lose. A future Government may not share the same commitment to active industrial strategy and may not be as willing to renew the tools needed to protect the sector, so we should not remove the extension mechanism now because we may leave workers and industry more exposed later on.

Opposition Members made the point that politicians should not run businesses, although of course the Minister for Industry did run a steel business for many years and did so very effectively. They may mean that politicians from this country should not run businesses. The Bill is before us because of the approach that Jingye has taken. The Chinese steel industry has long benefited from huge state subsidies, and cheap state-directed finance, energy support and overcapacity policies. Beijing did not leave it to the market; it used state power aggressively to expand industrial capacity, which is worth bearing in mind.

I will finish on this point. While the Government cannot say which assets they wish to use these powers for, it is evident that British Steel cannot remain in Chinese hands. I do not know what the long-term ownership structure will look like—perhaps it will be modernised and sold to a new buyer, or perhaps it will be taken into public hands and remain there, with steelworkers having some stake in the company that they built—but I do know this. When a Labour Government intervened to create the nationalised British Steel Corporation in 1967, Teesside enjoyed such high employment and high wages that it was classified as one of the best places to live anywhere in the UK. It brought stability to tens of thousands of families and built the second largest blast furnace in Europe.

In 1979, a very different Government took office with a very different theory of Britain—a small state and a blind faith in the global free market. In just five years, our region had the highest registered unemployment rate anywhere in Great Britain. By the end of Thatcher’s premiership, almost 250,000 jobs in our region had gone. They took a British industrial economy and turned it into a globalised service sector economy.

Today the Thatcherites are back, with a new logo and a new face. They will talk a big game on steel, but we have been here before. It is my belief that only a social democratic Government can truly protect our steel communities and equip them to face the future, because a social democratic Government recognise something that a foreign private owner cannot: the value of protecting sovereign industry, even when the going gets tough.

This issue is about our jobs, but it is also about our security. Will we be left exposed in a volatile world, or will we build for the future again? I hope that this Labour Government have the courage and ambition to do so.

[The Chairman of Ways and Means (Ms Nusrat Ghani)]

Minister McDonald, I believe you wish to contribute again.