Steel Industry (Nationalisation) Bill

Sarah Champion Excerpts

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

[Sarah Olney (Richmond Park) (LD)]

Steel provides vital materials for our national infrastructure, from defence to renewable energy, and creates thousands of jobs across the UK. The Liberal Democrats therefore welcome the action that the Government are taking to protect British Steel and ensure that the blast furnaces in Scunthorpe do not go cold, but we are clear that the nationalisation of British Steel must be a temporary step to rescue the business before it can be returned to the private sector. We believe in a thriving, privately run steel industry, supported and empowered by the Government through an effective steel strategy.

Although the Liberal Democrats support this step, the Government must provide more detail on the plan, including how they will find private co-investors who can help to modernise the sites and put the money in to help to create more jobs. They must also ensure that the key stakeholders, including industries that rely on steel such as defence, are properly engaged in and represented through the process. We cannot afford another collapse of British Steel in a few years’ time, and we must move on from interim short-term measures to create a robust long-term plan for the future of the plant and sustainable domestic steel production, with an emphasis on national security.

I wish to speak first in favour of amendment 1, which stands in my name. Fundamentally, it is about parliamentary accountability. If the Secretary of State is to exercise a significant transfer power, Parliament should, at the very least, be told why that action is necessary and in the public interest. The amendment would not prevent the Government from acting; it would simply require Ministers to explain their reasoning before exercising the power, providing far greater accountability and transparency. Requiring a statement to both Houses would help to ensure that the use of the powers is proportionate, justified and open to democratic oversight. The Government already argue that the powers will be used only where necessary. If that is the case, there should be no objection to setting out those reasons clearly before Parliament. Amendment 1 proposes a modest and reasonable safeguard. It does not create a veto or impose an onerous process; it merely asks Ministers to account for their decisions.

I wish to speak in favour of amendments 2 and 3, which seek to ensure that regulations relating to property transfers and share transfers are made subject to the affirmative procedure rather than the negative procedure. The transfer of property or shares by ministerial regulation is not a minor or purely technical matter. These provisions are the heart of the Bill and give the Government significant powers with substantial financial, operational and public consequences. Given the importance of such decisions, does the Minister not agree that it is entirely appropriate that Parliament should approve such regulations, rather than having to rely on the limited scrutiny afforded by the negative procedure? The affirmative procedure would guarantee a debate and a vote in both Houses, ensuring proper democratic oversight before the powers were exercised. At their core, amendments 2 and 3 are about reinforcing accountability, transparency and parliamentary sovereignty in the exercise of delegated powers, and I urge Members to support them.

New clause 2, which also stands in my name, would establish a stakeholder advisory committee to ensure that decisions made under the powers in the Bill included input from the relevant groups and those most affected. The exercise of principal transfer powers could have major implications not only for the steel undertaking itself, but for workers, local communities, supply chains and strategically important industries across the country. The proposed committee would bring together voices from industry, the workforce and local authorities, ensuring that decisions were grounded in practical expertise and real-world consequences. The inclusion of sectors such as defence and critical national infrastructure is particularly important, given the strategic significance of the steel supply to national resilience and economic security. A structured advisory mechanism would improve transparency, strengthen confidence in decision making and help to ensure that interventions are sustainable and effective. New clause 2 is about ensuring that the public interest is determined not behind closed doors, but with the benefit of broad expertise and stakeholder input.

I wish to speak in favour of new clause 3, which recognises that intervention in a steel undertaking cannot simply be about ownership or transfer powers in isolation. It must be about people, jobs and the long-term future of industrial communities. If the Government exercise these significant powers, they should be required to set out a clear strategy for protecting workers and supporting economic transition. Not only is the steel industry strategically important to the national economy; it is often central to the identity and prosperity of the local communities within which it is situated. Workers in these industries possess highly valuable and specialised skills. Any transition strategy should therefore prioritise the protection of skilled employment wherever possible. Where change is unavoidable, there must be a serious commitment to retraining, reskilling and redeployment opportunities so that workers are not left behind. New clause 3 would help to ensure that Government intervention was accompanied by a coherent industrial strategy, rather than being another short-term fix and crisis management.

Steelmaking is of vital strategic importance to the UK. It creates thousands of jobs across the country and is central to many communities, and we rely on it for essential parts of our national infrastructure, from defence and transport to clean energy generation and advanced manufacturing. Although the Liberal Democrats are supportive of the pace and urgency of the Government’s action to protect British Steel, nationalisation must be a temporary step, and the Government must ensure adequate transparency and accountability throughout the process. I therefore urge the Minister to support these amendments, to ensure that the legislation can deliver the necessary support to the steel industry, while balancing the needs of local communities and workers and ensuring that the necessary steps are taken to ensure thorough parliamentary accountability.

[Sarah Champion (Rotherham) (Lab)]

As you know, Madam Chair, I have been urging successive Governments for over a decade to back the British steel industry, so it is genuinely a pleasure to be here today as the Government do just that. I support this historic Bill.

Steel is essential for the UK’s economy. It supports thousands of well-paid, skilled jobs and plays a crucial role in ensuring Britain’s security, particularly in an ever more volatile and uncertain world. Yet for years the industry has been allowed to wither. Production has fallen and plants have been lost—and with them jobs, capability and capacity. We simply cannot afford to allow this precipitous decline to go on any longer.

Rotherham is a steel town. It has seen the consequences of past Governments’ neglect up close. Speciality Steel, which is based in Rotherham—and Stocksbridge—should be a crown jewel in our economy, but it has been allowed to lurch from crisis to crisis, choked of investment and left at the mercy of unscrupulous ownership, unfair competition and a lack of vision. The plants currently stand still, shuttered amid the fallout of Liberty’s collapse. The workers are furloughed and uncertain about what their futures hold. I would be grateful if the Minister could update the Committee on the current state of the sale, which is now in its final stages.

My concern is not limited to Speciality Steel. Steel in Rotherham is at the centre of our local economy, and the crisis has had a substantial impact up and down the supply chain. The Minister’s ambition for steel’s renaissance could also be a rebirth for local businesses and local communities, but that requires investment, foresight and commitment. The Government’s steel strategy sets out a strategic vision for the industry and, crucially, delivers real and profound change for the sector as a whole. With £2.5 billion of investment in the sector and an ambitious but achievable target of 50% of the steel used in Britain to be produced here, the strategy is a blueprint for a revitalised domestic steel industry; it is one that has been roundly welcomed by the sector.

Perhaps most importantly, the strategy sets out a new approach to steel imports. Time and again, I and other steel MPs in particular have warned that a failure to tackle cheap, often state-subsidised and heavily polluting imports would destroy any attempt to increase domestic production. Without a level playing field, British steel cannot hope to compete. It is therefore welcome that the Government have acted to protect UK steel producers from unfair competition through a range of new trade measures, quotas and tariffs. While that is good news for steel producers, we do need to get the details right. I thank hon. Members on both sides of the Committee for raising specific examples of that.

Alongside steel producers, Rotherham hosts a large number of steel stockholders and downstream businesses. I have raised with the Government a number of instances in which trade measures have been introduced on products not currently produced in the UK, or where UK production and capacity is far below demand. I urge Ministers to act to ensure that those businesses are not impacted unfairly and that trade measures conform to the realities of the UK market; to do otherwise risks inadvertently harming the very industries and communities that the Government seek to defend.

While the Bill will not have a direct impact on steel production in Rotherham, it does send an important signal. I am proud that the Government are taking resolute action to ensure that they have the necessary tools at their disposal to safeguard the future of British Steel in Scunthorpe. I hope that this will set a precedent as the situation with Speciality Steel develops and that they will take similarly decisive action there, should it prove necessary.

With the right support, British steel can—and should—play an ever greater role in our economy, in infrastructure projects and, crucially, in our national security. I know that steelworkers in Rotherham will be relieved to have a Government who are so clearly on their side—on the side of good jobs and a dynamic economy—and, most importantly, a Government who back British steel.

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

I will focus my remarks on clauses 1 to 3 of the Bill and the breadth of the powers that they give to the Secretary of State. I start with the meaning of a “steel undertaking” in clause 1, which is one

“that carries on a business consisting of or including…the manufacture or processing of steel, or…iron”.

As the Minister will know, I raised in an intervention on the Secretary of State on Second Reading—indeed my hon. Friend the Member for West Worcestershire (Dame Harriett Baldwin), who speaks from the Front Bench, also mentioned this earlier—that that wording could appear to include undertakings that have as little as 1% of their business in iron or steel.

--- Later in debate ---

[Sarah Champion]

Does the Minister share my concern and confusion about the comments made by the right hon. Member for Beverley and Holderness (Graham Stuart)? I was not sure if he was supporting the nationalisation of British Steel but thought that there was not enough money or that there was too much money. However, he seemed to support the fact that in Europe, the Government subsidise electricity, and I felt that he wanted that to happen here. For all the reasons that Members have said, I just want a really strong and secure steel industry in this country.

[Chris McDonald]

I think the right hon. Member for Beverley and Holderness (Graham Stuart) also wants a strong steel industry, but he has been quite clear that he does not see nationalisation as a tool for delivering that—I think that is fair. He is also concerned about the use of public money, which I think is fair as well. I shall address both of those points as I continue.

I am very pleased that my hon. Friend the Member for Rotherham (Sarah Champion) raised those issues. This is an opportune time to mention that in her earlier comments, she asked for an update on the current status of the Speciality Steel UK business, which I know affects her constituency and that of my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball). That business shows the power of a productive Government intervention, working carefully with industry, because the Government have underwritten the costs of the official receiver to allow a proper sale of the business. The official receiver is in exclusive discussions with a potential buyer, and there was a high level of interest in the business from the market.

As we look forward to the potential sale of the business, we can see the vital role that the Government have played in recognising that steel undertakings are complex, that it can be difficult and can take time to assess them, and that they require high levels of working capital. That contrasts significantly with Governments in the past, who allowed steel companies to close simply by not allowing that process to continue.

[Sarah Champion]

Will the Minister give way?

[Graham Stuart]

Will the Minister give way?

--- Later in debate ---

[Chris McDonald]

If the hon. Gentleman does not mind, I will take the second intervention from my hon. Friend the Member for Rotherham, and then I will give way to him.

[Sarah Champion]

The Minister is being very generous with his time. I want to take him back to the issue of Speciality Steel, because this is not just about the business itself—it is also about the supply chain. For example, the steel that is made in my constituency goes into Formula 1 cars and almost every plane in the sky. I think many hon. Members need to understand the consequential impact of saving not only British Steel, but all of our steel industry, on our whole economy and on global industries.

[Chris McDonald]

The supply chain is incredibly important. My hon. Friend is right about the jobs and the economic value in the supply chain; my hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland) also referenced the supply chain, and particularly how its needs relate to the measures in the Bill.

A number of the proposed amendments to the Bill would ultimately slow down the ability of the Secretary of State to make decisions—that point was also made by the hon. Member for Boston and Skegness. If the Secretary of State cannot act swiftly, there is a risk of greater uncertainty among employees and commercial partners in the supply chain, as my hon. Friend the Member for Newton Aycliffe and Spennymoor rightly said. That can have real-world consequences for businesses that rely on trade finance or other forms of working capital support, as a lack of confidence can rapidly turn into business closures. While some of those amendments are well-meaning—I am speaking particularly about amendments 2, 3, 18 and 19—they would fundamentally interfere with the speed and operational ability of the Secretary of State under the legislation and reduce legal certainty.

Speciality Steel UK: Insolvency

Sarah Champion Excerpts

Tuesday 2nd September 2025 Commons Chamber

[Sarah Jones]

I thank the hon. Lady for her remarks. She is right to ask about how we ensure that this nationally strategic asset is protected, and we are doing that. I have just set out the reduction in energy prices that the steel industry as a whole will benefit from—extending the super-charger from 60% to 90% to give network charge relief, which will bring significantly lower costs for energy prices for our steel industry. We are prioritising the procurement of British steel where the Government are spending money, because we believe that that is the right thing to do. We have already introduced protections for steel trading, and we are ensuring that we do everything we can, talking to our US counterparts all the time, about reaching a conclusion on the negotiations on the steel tariffs. I am optimistic about those conversations.

Of course, I speak to officials and other Ministers, and to the steel industry, about these issues all the time. We are lucky to have the Steel Council that we put together—trade unions, industry and others who are helping us to develop what we think will be an ambitious steel strategy that will ensure that the steel industry will not decline. The strategy will ensure that we will not be in the position we are currently in, where only 30% of the steel we use in this country is made in this country, and that we will be in a position where we can protect those good, experienced jobs and those good people who we want to support and make sure the industry grows.

[Sarah Champion (Rotherham) (Lab)]

You will be aware, Mr Speaker, that as long as I have been an MP, I have been coming to this Chamber arguing for support for Speciality Steel in my constituency. I politely say to the shadow Minister that the difference in response from this Government is night and day from what I had under the Conservatives. I personally thank the Minister, and the Secretary of State, for having such an open-door policy to me and my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball). I know the Minister is doing everything she can to save this speciality business.

One of the first actions of the official receiver was to release approximately 30 apprentices who were due to start their training in the next few weeks. Can the Minister reassure the House that the Government will not only commit to the business but acknowledge that it can survive only with its highly skilled, committed, professional staff and that she is as committed to them as she is to the business?

[Sarah Jones]

I thank my hon. Friend for those remarks; they are gratefully received, and we will continue to do all we can to support the steel industry. She is absolutely right that a number of apprentices were due to start this week, but the official receiver took the decision that, given that the 12-month continuation of the apprenticeships could not be guaranteed, it was right to try to find them other placements. I am taking a close personal interest in what happens to those 50 people. I know the local authority and the Department for Education are trying to ensure that we can find other places for them. I want to make sure that we can do so, because one of the things this Government are passionate about is ensuring that our young people have the apprenticeships to give them support for the jobs that we know we need into the future.

British Steel

Sarah Champion Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Sarah Jones]

The hon. Gentleman says that is not true, but he needs to provide evidence of that, because that is what British Steel has told us, and it does not have coking ovens because they were closed under the previous Government.

[Sarah Champion (Rotherham) (Lab)]

Madam Deputy Speaker, you know that I am a proud steel MP, so it has pained me to watch my business wither on the vine under the last Government. I am incredibly grateful to the Minister for acting so decisively to save British Steel, but in the steel strategy, can she commit to look at the underlying problems affecting Liberty Steel, a speciality green steel producer, including high energy prices, business rates and other countries, particularly China, dumping their dirty, inefficient steel in our market?

[Sarah Jones]

My hon. Friend makes important points and that is exactly what we are looking at in the steel strategy. On dumping steel, having been requested to examine the issue by British Steel, the Trade Remedies Authority has agreed to look at steel safeguards and ensure that they are fit for purpose in the here and now. We are also looking at what happens beyond 2026, when the steel safeguards stop, to ensure that sufficient safeguards are in place. All the issues she mentions need to be looked at, including electricity prices and energy prices, which doubled under the last Conservative Government. As we have said before, 53% of global steel production comes from China. We need to look at that imbalance, at how we can ensure cheap steel does not come into this country and at how carbon leakage is working. We are working hard on all those issues.

UK Supply Chains: Uyghur Forced Labour

Sarah Champion Excerpts

Tuesday 3rd December 2024 Commons Chamber

[Sarah Champion (Rotherham) (Lab)]

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the links between the UK’s supermarket supply chains and Uyghur forced labour.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

The UK addresses forced labour in global supply chains under section 54 of the Modern Slavery Act 2015, which requires commercial businesses that operate in the UK and have a turnover of £36 million or more to report annually on the steps they have taken to prevent modern slavery in their operations and supply chains. The purpose is to provide transparency, whereby businesses monitor their supply chains with rigour, are open about their risks and mitigations, listen to their workers, and act when they do find issues.

In addition, the Department for Business and Trade takes a number of steps to address forced labour within UK supply chains. We negotiate and implement forced labour and modern slavery provisions within our free trade agreement programme, the developing countries trading scheme allows for the suspension of preferential trading arrangements on grounds of serious violation of labour rights, and UK Export Finance reviews environmental, social and human rights risk factors for transactions in the scope of its policy. We regularly engage with business and international partners in respect of both domestic and international tools to combat forced labour.

On Xinjiang specifically, we will continue to stand firm on human rights where China continues to persecute and arbitrarily detain Uyghurs and other predominantly Muslim minorities. The UK Government also expect, encourage and support UK businesses to undertake due diligence so that human rights and environmental issues are considered in their operations and supply chain relationships, in line with the OECD guidelines on responsible business conduct.

[Sarah Champion]

I thank the Minister for his statement, but, with the greatest respect, what he has described is clearly not working.

Yesterday’s “Blood on the shelves” BBC investigation has rightly shocked the British public. Tomato products sold in UK supermarkets, with labels informing British customers that purées were “Italian made” or “produced in Italy”, were actually linked to slave labour in the Xinjiang Uyghur autonomous region. Our weak and confusing product label regulation has allowed linguistic sleight of hand to occur with, one can only assume, the aim of misleading consumers. I have to push the Minister: what more evidence is required to prove that we need stronger labelling standards that give consumers more information on the sourcing countries of pre-packed products?

In the Uyghur region, egregious human rights abuses are taking place every single day, all underpinned by a system of state-imposed forced labour. It is estimated that several hundred thousand people are involved in the production of tomatoes against their will. The United Nations has reported forced labour, torture and abuse. Survivors of the tomato fields cite having to meet impossible daily quotas, with physical torture such as electrocution used as punishment for failing to meet those targets, yet tomato products created using these barbaric practices line the shelves of our supermarkets and are sold as if they had been produced in a completely different country.

Sadly, this investigation is just the latest in a long line of reports showing that UK supply chains are awash with Uyghur forced labour products. Clothing, steel and solar have a serious dependency on Uyghur forced labour. The Modern Slavery Act is itself currently unfit for purpose. Current laws mean that companies are legally allowed to self-regulate, as human rights due diligence is optional for UK companies. We are now an outlier on legislation to prevent human rights abuses. The United States has enacted important legislation, as has the European Union, but the UK, once again, is a global outlier when it comes to slave-made goods.

I urge the Government to work with me to implement stronger legislation, improve our labelling standards and champion human rights. To supermarkets, I say, “All of you are complicit in putting profits above human rights, and I hope that the British public do the right thing and make their mark through their pockets and their wallets.”

[Mr Alexander]

Let me first pay tribute to my hon. Friend the Member for Rotherham (Sarah Champion) for the consistency and focus that she has brought to this issue. It is not a new worry for her. I assure her that I shared that concern yesterday morning when I heard the reports and the allegations that were levelled in relation to tomato paste, and I also assure her that the Government will approach the company in question to try to establish more clearly the exact facts that underlie those deeply worrying reports.

I think we are again in complete agreement about the egregious character of the human rights abuses taking place in Xinjiang province. I am glad to say that the Prime Minister in his most recent meeting with President Xi Jinping, and indeed the Foreign Secretary in his recent meeting with his counterpart, specifically raised the issue of human rights in China, notwithstanding our willingness to engage directly with the Government of that country.

As for the work that we are doing, the formal position of the Government remains that we expect all companies to conduct business responsibly, in line with the OECD guidelines for multinational businesses on responsible business conduct and the UN guiding principles on business and human rights.

My hon. Friend mentioned the legislation that has been passed in the United States. In the United States, the European Union, Canada and Mexico, legislation has been introduced or is in the process of being introduced specifically for import bans to prevent such goods from entering their markets in the first place, and I assure my hon. Friend that we are reviewing the impact of those measures to inform what should be the UK’s approach.

UK Steel Manufacturing

Sarah Champion Excerpts

Thursday 5th September 2024 Commons Chamber

[Sarah Jones]

I thank the right hon. Gentleman for his question. Of course, if we do not take measures to decarbonise and tackle the climate crisis, the costs to this country will be infinitely higher. This is not a choice. [Interruption.] The hon. Member for Orpington (Gareth Bacon) disagrees, but we need to make sure we can decarbonise in a way that supports our industry to make that transition, which is exactly what we are doing.

The point of an industrial strategy is to lay out a plan so that the industry gets the support it needs, so that investors understand the plan and so that, by working together, we can make sure we decarbonise. The Government are supporting that where we can and pulling the levers we can. We are supporting the industry to do the opposite of what happened under the previous Government, which is grow.

[Sarah Champion (Rotherham) (Lab)]

It is a real pleasure to see you in the Chair, Madam Deputy Speaker. I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this important urgent question.

Rotherham has a proud history of steelmaking, but I have been fighting against Governments for the last 12 years for it to have a proud future. Will the Minister commit to addressing the underlying issues, to making sure all Government procurement goes to British steel- makers, and to addressing the punitive business rates and high energy costs that are hampering our development?

[Sarah Jones]

I thank my hon. Friend for making those important points. Our energy-intensive industries are hammered by energy costs, which are at the heart of this. Although the previous Government provided relief, we need a longer-term solution. We need to bring down those energy costs. That is why we are pushing for clean energy by 2030, which will be cheaper, and why we want to produce more energy in this country so that we are not reliant on Putin or affected by international events.

I have talked about business rates, and my hon. Friend is absolutely right that we need to look at that. Government procurement is very important, so we are looking at our supply chains and all the levers of Government to see what we can do proactively to make sure that, where we can, we are making, building and using in the UK.