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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

No reports or special reports published.

Oral evidence transcripts

View all oral evidence transcripts
20 July 2021
Inquiry Liberty Steel and the Future of the UK Steel Industry
Witnesses Department for Business, Energy and Industrial Strategy
Committees Business, Energy and Industrial Strategy Committee
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
Committees Business, Energy and Industrial Strategy Committee
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
Committees Business, Energy and Industrial Strategy Committee
Oral Evidence
LS0001 - Liberty Steel and the Future of the UK Steel Industry
Witnesses Anonymous submitter (Anonymous submitter at no organisation)
Committees Business, Energy and Industrial Strategy Committee
Written Evidence
LS0008 - Liberty Steel and the Future of the UK Steel Industry
Witnesses GFG Alliance
Committees Business, Energy and Industrial Strategy Committee
Written Evidence
LS0007 - Liberty Steel and the Future of the UK Steel Industry
Witnesses British Steel
Committees Business, Energy and Industrial Strategy Committee
Written Evidence

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