Steel Industry (Nationalisation) Bill

Debate between Sarah Champion and Chris McDonald

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

[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?

--- 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.