I wish to update the House on the position regarding Speciality Steel UK (SSUK).

SSUK entered liquidation in August 2025, with the independent, court-appointed Official Receiver managing the liquidation process. Throughout this period, the Government has provided funding to enable the Official Receiver to carry out his statutory duties, including maintaining site safety, supporting employees and conducting a sales process for the business and its assets.

For more than 12 months, the Government has worked hard to facilitate a private-sector solution, funding the Official Receiver’s process while interested parties engaged in the sale process.

As part of that process, the Official Receiver engaged with a number of interested parties seeking to acquire the business and its assets. The final bidder taken forward by the Official Receiver subsequently sought Government support associated with its proposed acquisition of SSUK. Following extensive engagement with the bidder and its advisers, and detailed consideration of that request, the Government has concluded that it cannot provide support on the terms proposed.

This decision has not been taken lightly. The Government carefully examined the proposal and explored whether an arrangement could be reached that appropriately protected public money while providing a sustainable basis for the future of the business. Despite extensive engagement, material concerns remained regarding the evidence supporting the proposed financing package and the protections available to taxpayers.

The Government's decision relates specifically to the proposal for Government support that was presented. It should not be interpreted as a broader judgement on the bidder or its wider business activities.

SSUK occupies a unique place in the UK steel ecosystem. Its specialist capabilities have potential applications in advanced manufacturing sectors, including aerospace and defence, while its sites are major employers in communities facing significant economic challenges.

The Government also recognises the significance of the SSUK sites to employees, local economy and the communities it supports. Given the size and complexity of these sites, an Official Receiver-led closure process could materially reduce future options and create significant uncertainty for workers, communities and local stakeholders.

The communities surrounding SSUK have already suffered a prolonged period of uncertainty. The Government cannot accept the prospect of a prolonged process that will restrict HMG’s aim to create the growth opportunities this area deserves, especially while viable future options remain available for consideration. We are determined to ensure that decisions about the future of SSUK are taken in a way that protects local communities, preserves opportunity and supports economic growth.

The Government will therefore engage with the Official Receiver’s sale process and develop a proposal for the public acquisition of SSUK. This approach will help preserve control of the sites and maintain strategic optionality while decisions are taken on their longer-term future.

Public acquisition is not an endpoint and does not pre-judge the outcome of this work. It will create the space for a detailed assessment of a sustainable future for SSUK as a speciality steelmaker, regeneration of the sites, or a combination of the two.

The Government will engage closely with local communities, elected representatives, the Mayor and relevant experts to determine the most appropriate future for the business and its sites.

All future decisions and spending commitments will be subject to detailed due diligence and funded from existing Government budgets.

The Government will continue to keep the House informed of significant developments.

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