MPs right to ask what the plan is for British Steel as cost for taxpayer mounts
The argument to save British Steel was clear and it was one of the rare occasions where there was cross-party consensus for the Government to step in and renationalise the steelmaker.
Preventing the last remaining blast furnaces from being snuffed out was just as much a security imperative as an economic one.
Writing in today’s newspaper, Business Secretary Jonathan Reynolds says steel “underpins critical supply chains and supports thousands of skilled jobs”. There is no denying that the sector is critical to the economy, infrastructure and manufacturing base in this country.
The Government’s recent move to acquire Speciality Steel was understandable but that only highlights the need to be financial probity when it comes to spending taxpayer money on the industry.
MPs are right to ask what the plan is regarding British Steel, as costs top half a billion pounds.
Given that £1.3m a day of taxpayers’ money continues to be spent on British Steel, the question is when will British Steel become financially sustainable.
What is needed more than anything else is good business acumen and a model that enables the company to stand on its own feet financially. Last week the Government announced Alan Lovell as the next chairman of British Steel. The veteran industrialist has an impressive track record.
When the Government does run a process to sell British Steel back to the private sector, it must do so with strict criteria on who the next owner is of the company. The last thing Britain needs is for steel security to once again come within hours of being irreparably damaged.
Steel isn’t like other industries. It is critical to national security so a steadfast commitment to keeping it alive is understandable. However, it must be done in as financially viable a manner as possible.