Starmer’s call for clarity on future of steel plants

LABOUR HAS called on Ministers to provide clarity on the future of Liberty Steel’s UK plants amid fears thousands of jobs could be lost if the firm goes under.

Business Secretary Kwasi Kwarteng refused to rule out the prospect the business could be taken into public ownership, saying “all options are on the table”.

However, Labour leader Sir Keir Starmer said the firm’s 5,000 workers urgently needed an answer to the basic question “What’s going to happen to me and my job in Liberty Steel?”

Mr Kwarteng confirmed Ministers had turned down a request by Liberty’s parent company, the GFG Alliance, for a £170m bailout.

The company turned to the Government for support following the collapse of its main financial backer, Greensill Capital.

However, Mr Kwarteng said they had been concerned the “very opaque structure” of GFG – with assets around the world – meant there was no guarantee the money would stay in the UK to support British jobs.

He nevertheless stressed the Government considered Liberty to be a “really important national asset” and was looking at plans to ensure the business in the UK was able to continue.

“We’re looking at all plans at the moment and you will appreciate that it’s commercially very sensitive,” he said.

“I think that the current owner is looking at ways of refinancing the group and I’ve been very clear that I want to see his plans worked through before we actually go into anything in terms of a further plan to keep the jobs and the plant safe.”

Mr Kwarteng, meanwhile, defended the role of David Cameron in lobbying on behalf of Greensill Capital before it filed for insolvency.

Labour has been pressing for an inquiry amid reports the former Prime Minister had used his contacts to personally lobby Chancellor Rishi Sunak for support for Greensill through the Government’s Covid Corporate Financing Facility.