The Shadow Levelling Up Secretary has urged the Government to negotiate a deal with British Steel’s owners rather than pursuing nationalisation.
Speaking to GB News, Kevin Hollinrake emphasised the importance of maintaining UK steel production capacity, particularly at the Scunthorpe plant.
The Conservative MP outlined his party’s position that primary steelmaking capability “must be retained” within Britain.
He suggested that while British Steel is seeking significant taxpayer funding – potentially up to £1billion – the Government should continue negotiations with the current owners.
Kevin Hollinrake called for the Labour Government to ‘do a deal’ for British Steel rather than nationalising it
PA / GB News
Hollinrake made clear his preference for a private sector solution, stating: “We’d much rather a deal be struck with the current owners or with another private sector owner, rather than the Government owning it.”
The Shadow Levelling Up Secretary stressed the importance of maintaining negotiating leverage with British Steel.
“The opposition’s take is that we want to retain primary steel working capacity and capability within the UK, and that means the remaining plant we have that can do that is Scunthorpe. We do not want to see that plant closed,” Hollinrake told GB News.
He added: “In a negotiation it’s important to have options. So clearly, British Steel is negotiating in its own interests and is looking for a lot of money from Government, from the taxpayer, up to a billion pounds.”
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The Conservative MP indicated his party would support continued talks with the steel manufacturer: “So clearly, those negotiations have to continue, and we wish the Government well with it.”
Despite wishing the Government well in negotiations, Hollinrake expressed doubts about their capabilities.
“I’m not sure their business experience really means they’re particularly capable of such a negotiation,” he remarked.
“The negotiation, we hope will be successful, but all options are going to remain on the table.”
Hollinrake told GB News that Labour has ‘no logic’ in its plans to nationalise British Steel
GB News
Hollinrake sharply criticised Labour’s approach to the steel industry: “There’s no logic. There’s no joined-up thinking.”
He accused Labour of breaking promises regarding steel production: “The Labour Party was very clear that they would protect and preserve virgin steelmaking capacity within the UK that’s Scunthorpe, it’s already overseen the closure of Port Talbot, their primary steel making capability.”
The Shadow Secretary emphasised the strategic importance of maintaining domestic steel production, telling GB News: “We need that steel for our defence, for infrastructure, all those things.”
Hollinrake warned that Britain cannot afford to lose its remaining steelmaking capacity.
“It cannot let this last plank go. It’s already reneged on some of its promises,” he concluded.
