Steel Industry (Nationalisation) Bill

Debate between Peter Kyle and Jeremy Wright

2nd reading
Thursday 21st May 2026 Commons Chamber

[Peter Kyle]

The right hon. Gentleman raises a really important point. This Government are determined to make, produce and use more steel from the British sector in lots of different areas of the economy, and we want to ensure that we are using Government spending and procurement in driving up steel production in the UK.

I had the privilege to visit the Agratas gigafactory in Somerset. It is in a different sector, but it is using 231 tonnes of British steel in its production. That is using an amount of Government investment as well, so it has Government investment and private sector investment and is using British steel. That shows that when we align our priorities, we can drive up demand for British steel.

[Sir Jeremy Wright (Kenilworth and Southam) (Con)]

I want to ask the Secretary of State about the breadth of the Bill. Clause 1 makes it clear that a “steel undertaking” includes those businesses that have the “manufacture or processing” of iron or steel as part of their operations. Is there any lower threshold to that? Is a business that has only 1% of its operations in iron or steel liable to nationalisation under the Bill?

Under clause 2, the Secretary of State is entitled to determine the public interest and can nationalise if it would support

“the economy of the United Kingdom or any part of the United Kingdom.”

I have the same question: is there any lower threshold? Would the interests of one town where a steel facility is located be sufficient to justify the nationalisation of an entire company?

[Peter Kyle]

The public value test is a high test, and I think the right hon. and learned Gentleman will agree that that is the case on seeing and reading the legislation, as he has done.

I have set the bar high enough that this power would be triggered only in extraordinary circumstances. These are things that we can test in Committee in the coming days—I believe that will be next week. [Interruption.] It will be in the next sitting week, when we return from recess. Do not worry; we are not recalling Parliament again. I will address this matter a bit more in my speech. This power will not be used routinely; it is a specific power, and the test for it will be high.

[Sir Jeremy Wright]

Will the Secretary of State give way?

[Peter Kyle]

I will make some progress.

To that end, we began negotiations in good faith with Jingye, the owner of British Steel, to see if a commercial sale was viable, but that did not prove to be possible. We could not agree terms that would have safeguarded simultaneously the integrity of the business and the interests of the taxpayer. That is why the Prime Minister announced the Government’s intention to bring British Steel into public ownership, subject to the public interest test being met at the time of that decision. That is why we need to pass the Steel Industry (Nationalisation) Bill now, to give us the power to make that possible.

Let me be clear to the House. In answer to the question from the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright), the powers given to the Government by the legislation cannot be exercised without due caution and proper care. These powers are bold, but they are not boundless. They can be used only where there is a clear public interest and where they will be needed to safeguard British steelmaking capability. The Bill does not nationalise British Steel in and of itself, but it grants the Government powers to do so if considered necessary. That is the scope of the legislation we are debating today.

[Sir Jeremy Wright]

The Secretary of State is being generous. I take him at his word as I do not think that he intends to use this legislation otherwise than appropriately. However, there is an important point to be made about the language in the Bill as it stands. As he knows, the public interest test is defined in certain ways in clause 2, which states that the test “is not limited to” the grounds listed, so there could be other grounds on which the public interest might be met. I have already pointed out one aspect in which the public interest test is relatively broad. I invite the Secretary of State to look again at the public interest test to make sure that we do not just rely on his word, which I do, but that we are confident that succeeding Secretaries of State cannot misuse this power to nationalise too broadly.

[Peter Kyle]

I am grateful for the right hon. and learned Gentleman’s intervention. I knew when I was bringing these powers in and working through the legislation that they would be an important part of the Bill and rightly the subject of scrutiny. There will be significant time in Committee of the whole House for Members to scrutinise the legislation. We are modelling this Bill on the Banking Act 2009, which has worked effectively. In that circumstance, the powers were used during the financial crisis in extremis, and those powers, on which we are modelling this Bill, have not been used irresponsibly since. I have been clear about my expected use of these powers, and the bar set in the legislation meets my expectations, including limiting my ability to use these powers in ways that would cause concern for Members.

For too long, the steel sector in this country has been left to fend for itself, abandoned by Government, demoralised, starved of resources and the victim of international market distortions. Crude steel production has declined by more than 50% in the past decade. Capabilities have been reduced, and communities have been let down. Previous Governments have been too reactive and not proactive. This Government will not repeat the errors of the past. We are building the future for British Steel. While the industry faces challenges today, we will do everything we can to help it modernise and grow. This legislation allows us to apply that policy to this industry. We recognise that securing the long-term future of the UK steel sector relies on public and private investment for modernisation, so that the UK can become a global leader in clean green steel, electric arc furnaces and decarbonised steel production.

We recognise that blast furnace production will need to continue in the immediate future and that a managed transition is vital to maintaining supply. We need this legislation to raise resilience, to protect businesses up and down the country that depend on Britain’s steel, to defend the workforce at British Steel and to safeguard the communities built on British steel. The significance of steel is not simply a matter of history; it is a matter of our national future. In an uncertain world, the ability to make steel remains a strategic national asset. Steel is essential for our transport networks, our energy security, our housing and our transition to a greener economy. That is why supporting the British steel industry is about more than protecting jobs, important though they are. Supporting British Steel—

Data (Use and Access) Bill [Lords]

Debate between Peter Kyle and Jeremy Wright

2nd reading
Wednesday 12th February 2025 Commons Chamber

[Peter Kyle]

It is imperative that we reassure people up and down the country that their data will be used safely and wisely, and that they will always remain in control of how their data is used. I can give my hon. Friend those reassurances. The House will notice that this Government have acted with transparency when it comes to informing the public how data and the algorithms that process that data are being used. Just last week I released more algorithms for public scrutiny, so that they can be put into the algorithm playbook that we have released. From Department to Department, more of those algorithms will be made available as our resources allow. That is just one example of how we are using transparency to earn the public’s trust. In the year before the general election, just one Department released an algorithm for public scrutiny.

[Sir Jeremy Wright (Kenilworth and Southam) (Con)]

There is a great deal in this Bill that we can all support, but some difficult concepts lurk within it, as I know the Secretary of State will recognise. He is talking about data transparency. One of the issues of concern is about precisely what we mean by the “scientific research” on which data may be employed, and precisely what we mean by “the public interest” that must be served by that scientific research. We will not examine this issue on Second Reading, but may I ask him to commit to a proper examination of those concepts as the Bill moves forward, so that we can all understand what we mean and the public can get the reassurance that he describes?

[Peter Kyle]

I am grateful to the right hon. Gentleman for his informed intervention. I can assure him that we take this issue very seriously. I can also assure him that this is one of the issues on which we will go into considerable depth in Committee, and I am sure that his Whips are hearing of his interest in getting on to that Committee. He is clearly volunteering to put in the hard yards to make sure that we get the Bill right.

None of the things that I have outlined will succeed without trust. People will not use technology unless they are confident that it is being used safely, but we often lack the rigorous evidence that we need to take decisions about the safety of our rapidly changing online world. The provisions in this Bill will allow researchers to access data held by platforms, enabling them to conduct robust independent research into online safety. I am grateful to peers for their dedication in rigorously scrutinising these measures. We have listened closely, and in response we have made some important changes to the Bill. First, we have brought forward measures to strengthen data protection for children. Information society service providers likely to be accessed by children will now have clear legal duties to consider how best to protect and support children when designing their data-processing activities.

Secondly, we have added a provision to help charities use email to engage with people who have previously supported their charitable purposes. Thirdly, we have committed to making it easier for people to navigate data protection measures in a world transformed by technology. In two rapidly growing sectors—automated decision making and edtech—we will ask the Information Commissioner’s Office to publish codes of practice to give people the knowledge and confidence they need to use personal data legally.

--- Later in debate ---

[Peter Kyle]

I am grateful for my hon. Friend’s work on the Culture, Media and Sport Committee in scrutinising these areas and for being a voice for the sector. It goes without saying that I would be delighted to meet the people he references, and the same goes for Members on both sides of the House. Whether I can fit every one of the 2.5 million people who work in the sector into my office, I do not know. It is a bigger office than I had seven months ago, but I am not sure I can fit everyone in. However, I will do my absolute best; I am here to listen and learn, as I have been from the outset, and I am here to find a way through. It is time to reconcile these issues and to give certainty to people in both the creative arts sector and the technology sector. I believe the Bill is the moment for this House to provide the certainty that both sides need as we move forward.

Fifthly and finally, let me say a word on Lord Lucas’s amendments. People will use digital identities to buy a house, to rent a car and to get a job. The intention of clause 45(6) is to force public authorities to share whether someone’s information, such as their sex, has changed when disclosing information under clause 45 as part of a digital verification check. That would mean passing on an excessive amount of personal data. Sharing such changes by default would be an unjustifiable invasion of people’s privacy, and I am unable to say that clause 45(6) is compatible with human rights law, which is why we will seek to overturn the amendment.

[Sir Jeremy Wright]

The Secretary of State is very generous in giving way. Before he finishes, may I ask him about the situation we are creating with this Bill and the Online Safety Act 2023 of setting a framework within which regulators need to operate and cover a good deal of ground? Does he think the advent of these pieces of legislation makes a stronger case for a new Committee of this House, and perhaps a Joint Committee, to maintain scrutiny of ongoing digital regulation? If so, will he be prepared to advance that case?

[Peter Kyle]

That is the right hon. and learned Gentleman’s second audition of the day. I am open-minded on these issues, and I take leadership from the Leader of the House on Committee matters.