What's happened?
British Steel has been placed in compulsory liquidation. The Official Receiver – an individual appointed by the High Court - has taken control of the company as part of the liquidation process. The search for a buyer for British Steel has already begun. In the meantime the company will trade normally, workers are still getting paid and no job losses have been announced.
Who’s responsible?
There’s never one factor, but I pin the blame primarily on Greybull Capital – the company’s owners. They have been complete sharks throughout this entire process. They’ve extracted £tens of millions out of the company, and Greybull's parent company was lending British Steel money at extortionate rates of interest. You can read more about my thoughts on their predatory approach here.
There are also other factors, such as: Government dragging out Brexit uncertainty; weak global demand; state-subsidised dumping of cheap steel from China; extortionate energy costs; carbon taxes; business rates; and EU state aid laws. It’s a toxic cocktail – but Government has been utterly hopeless in dealing with factors within their remit.
Will we find a new buyer?
The Official Receiver and administrators Ernst & Young are looking for a buyer for the business. As of 28 May 2019, 60 potential buyers have been sent non-disclosure agreements giving them access to detailed commercial information about British Steel. Discussions with an additional 20 potential buyers are ongoing.
What has the Government done so far?
A HM Treasury-backed indemnity is still in place, meaning Government is keeping British Steel open and giving it the best chance of being saved. This indemnity also means Government will now be paying workers' wages. No job losses have been announced and all workers will still be paid.
What happens if we can't find a new buyer?
Together, working with all local politicians, we are fighting behind the scenes to ensure that ALL options to save British Steel remain on the table - including significant public subsidy and nationalisation. Our overriding priority is to save the entire company and protect British Steel’s profitable plants at Lackenby and Skinningrove.
I am in constant communication with the company, Government officials and potential investors to see how we can save our steel.
Do you need support?
A helpline is still open to answer any questions: 0161 333 2666. Alternatively, please email: [email protected] . You can also email me: [email protected]
