Speciality Steel UK

Mark Pritchard Excerpts

Monday 14th September 2026 Commons Chamber

[Jonathan Reynolds]

Again, I am grateful to my hon. Friend, with whom I have been discussing steel matters in this House for many years. I am aware of the specific challenges at Llanwern. I believe it is a very sound business, and our trade defence measures will directly benefit it. Again, we have to strike a balance. People would sometimes like us to go further in one direction than the other, but this is all part of the support we have given the steel industry. I believe that the downstream use she mentioned will be central to the future of steel production in Wales.

[Mark Pritchard (The Wrekin) (Con)]

There is a central inconsistency in the Secretary of State’s argument. He talks about steel as a strategic asset, and I of course agree with that, but so are oil and gas, yet the Government do not seem to be coming forward with any proposals on that sector. He mentioned in his oral statement that the Government are going to pay this from “existing Government budgets”, but in answer to a question, he said that the money would possibly “fall on the Exchequer”, so how much is this going to cost? He also mentioned that he would prefer for the business to remain in the private sector, which is encouraging to hear, so does he have an indicative timetable for when it might go back on the market and be sold?

[Jonathan Reynolds]

The right hon. Member will understand that I will not comment on matters pertaining to the Secretary of State for Energy Security and Net Zero, but stick to the considerable number of issues in the domain of BIST. He specifically asked about cost. The cost for the official receiver is £11 million a month, which is in the main to meet the payroll cost of the more than 1,200 members of staff that the sites employ. That is what we have done to date, and it is what we will continue to do.

On returning it to the private sector, we first have to see whether there is an opportunity to save this business. That may require public acquisition, as I said in my statement. If we follow the path in that direction, we would have to inject working capital—the process can now ascertain what that sum of money would be—to make the products and the business plan attractive and enable a return to the private sector, but that is a long way down the road. If we put in public money, I would want a return for that public money. I am more than willing—keen, in fact—to see this business return to the private sector, but if we put in public money to turn it around, I would obviously want to protect that money. I think is an entirely pragmatic and reasonable consideration.