Analysis: No return imminent for British Steel

WHEN TATA announced its decision to sell its UK businesses, Government sources were quick to say they were not ruling out any options, hinting at some form of state ownership.
The Government is unlikely to get back into the steel businessThe Government is unlikely to get back into the steel business
The Government is unlikely to get back into the steel business

In a similar vein, I can reveal I am not ruling out representing England at the Euro 2016 football championships this summer.

Despite playing centre-half for my primary school football team thus far being the pinnacle of my career in the game I remain available for selection should England manager Roy Hodgson decides he needs my help.

Hide Ad
Hide Ad

The idea that the Conservatives who, as part of the Coalition Government, last year returned the East Coast Mainline franchise to the private sector when it was making money for the taxpayer would be prepared to put a massive loss-making business on its books is far-fetched to say the least.

It is impossible to imagine the Chancellor agreeing to the Government getting into the steel business when he is still under fire for producing a Budget with a huge blackhole at its centre following the U-turn over disability benefits.

Subsequent clarification from Business Minister Anna Soubry suggested the Government’s focus is on persuading Tata to give sufficient time for buyers for its UK operations to be found. The Government could have a role in holding steel assets in a way that stops short of full ownership.

Immediately and unequivocally ruling out state ownership would be an admission the Government is ultimately ready to let thousands of jobs be lost if no buyers can be found and that would not be sensible with elections to the Welsh Assembly, Scottish Parliament and local councils weeks away. But there should be no doubting the reality that if Tata’s operations are to have a long-term future, it will be in private hands.