Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether company directors will be indemnified from wrongful trading liability under the Steel Industry (Special Measures) Act 2025.

If required, the Government would provide an indemnity from any possible wrongful trading liability to any company director appointed by Government under the Steel Industry (Special Measures) Act 2025, or who had followed instructions from the Secretary of State for Business and Trade given pursuant to that Act. Whilst we recognise that there is a theoretical possibility of a wrongful trading claim against any such individuals relating to the period of special measures, it is not the intention of the Government that British Steel enters liquidation, which is the circumstance in which a wrongful trading claim could arise.

Any company directors not appointed by Government, and/or who had not had access to company systems and processes by direction of the Secretary of State under the Steel Industry (Special Measures) Act 2025, would very likely have a good defence to any claim for wrongful trading brought later by a liquidator relating to any period when the company was under special measures. It is a matter for those directors to seek advice and take whatever steps they consider appropriate in the circumstances.