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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.

Reports, special reports and government responses

View all reports and responses
Fourth Report - Liberty Steel and the future of the UK steel Industry
Inquiry Liberty Steel and the Future of the UK Steel Industry
HC 821
Report
Response to this report
Eighth Special Report - Liberty Steel and the Future of the UK Steel Industry: Government Response to the Committee’s Fourth Report
HC 1123
Government Response
Email to the Chair from Lex Greensill relating to Greensill Capital, received 21 July
Inquiry Liberty Steel and the Future of the UK Steel Industry
Correspondence
Letter from Grant Thornton UK LLP relating to Greensill Capital
Inquiry Liberty Steel and the Future of the UK Steel Industry
Correspondence
Letter from the Secretary of State on Liberty Steel and the UK steel industry
Inquiry Liberty Steel and the Future of the UK Steel Industry
Correspondence

Oral evidence transcripts

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20 July 2021
Inquiry Liberty Steel and the Future of the UK Steel Industry
Witnesses Department for Business, Energy and Industrial Strategy
Oral Evidence
6 July 2021
Inquiry Liberty Steel and the Future of the UK Steel Industry
Witnesses Financial Times, Alliance Manchester Business School, The University of Manchester, and London Business School
Oral Evidence
29 June 2021
Inquiry Liberty Steel and the Future of the UK Steel Industry
Witnesses Wyelands Bank, King & King Chartered Accountants, and British Business Bank
Oral Evidence
Materials Processing Institute (LS0009)
Anonymous Submitter (Submitter of LS0001) (LS0010)
Anonymous submitter (Anonymous submitter at no organisation) (LS0001)

Contact us

  • Email: commonsbtc@parliament.uk
  • Phone: 020 7219 8586 (General enquiries) | 020 7219 4984 (media enquiries)
  • Address: Business and Trade Committee, House of Commons, London, SW1A 0AA