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Liberty Steel and the Future of the UK Steel Industry

Inquiry

The BEIS Committee is holding an inquiry into Liberty Steel and the Future of the UK Steel Industry.

On 8 March 2021, the supply chain finance firm Greensill Capital collapsed into administration after months of speculation about its financial viability. Greensill was the principal financial backer of GFG Alliance, owner of Liberty Steel, which is the third largest steel manufacturer in the UK. The collapse of Greensill puts 5,000 jobs at risk at Liberty Steel and other firms.

UK taxpayers are reported to be exposed to more than £1bn of debt from the collapse of Greensill via three Government guarantees, including a state-backed coronavirus lending scheme, which enabled Greensill to advance hundreds of millions of pounds to companies linked to GFG Alliance.

On 28 March 2021, the Government rejected a request for £170m in financial support from Mr Gupta for Liberty Steel due to concerns over GFG Alliance's opaque accounting procedures. This raises questions about the effectiveness of auditing and corporate governance regulations, and about the risks posed to UK industry by high-risk financing methods.

The UK steel industry has faced serious challenges for many years, particularly due to the excess of steel on the international market which has depressed prices, and which resulted in plant closures and staff lay-offs during the 2015/16 steel industry crisis. The sector is also grappling with the Government's ambitious target of 2035 to achieve net zero emissions in relation to steel production.

Work news

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Greensill Capital - publication of British Business Bank correspondence
MPs publish letter as part of its inquiry into Liberty Steel & the future of steel industry in UK
22 July 2021
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BEIS Secretary of State questioned on Liberty Steel
Business, Energy and Industrial Strategy Committee questions Kwasi Kwarteng MP, Secretary of State
15 July 2021
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BEIS Committee calls on Sanjeev Gupta to answer questions on Liberty Steel & GFG Alliance
Darren Jones MP has written to Sanjeev Gupta about Liberty Steel & the future of the UK steel industry
14 July 2021
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Future of steel industry & Liberty Steel inquiry continues
Business, Energy and Industrial Strategy (BEIS) Committee continues its inquiry into Liberty Steel & the future of steel industry in UK
2 July 2021
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Committee requests Lex Greensill respond to questions on Liberty Steel & future of UK steel industry inquiry
Chair writes to Lex Greensill relating to the Committee’s inquiry on Liberty Steel & the future of the UK steel industry
30 June 2021
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BEIS Committee examines the financial relationships of GFG Alliance and Liberty Steel
BEIS Committee hears from King and King, Wyelands Bank and the British Business Bank
25 June 2021
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BEIS Committee requests Lex Greensill attendance for Liberty Steel & future of steel industry inquiry
BEIS Committee requests Lex Greensill attendance for Liberty Steel & future of steel industry inquiry
16 June 2021
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Committee questions Kwasi Kwarteng, Secretary of State, for future of steel inquiry
Business, Energy and Industrial Strategy Committee to hold an evidence session for its inquiry into Liberty Steel & the future of steel industry in UK
21 May 2021
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Liberty Steel and the future of the steel industry in the UK: New inquiry launched
The Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry examining the current challenges facing the steel industry.
27 April 2021
Total results 9 (page 1 of 1)

Contact us

  • Email: beiscom@parliament.uk
  • Phone: 020 7219 4494 (General) / 020 7219 7556 (Media)
  • Address: Business, Energy and Industrial Strategy Committee, House of Commons, London, SW1A 0AA