Another steelworks is under state control after Business Secretary Jonathan Reynolds told the Commons earlier this week that the Government is moving to nationalise Speciality Steel UK. Reynolds guesses a price tag of “around £350 million” will be required to pay off the creditors, buy the assets and pump in working capital for up to three years. But the business department still needs to figure out how much the sum really is. Co-conspirators might want to add a margin of error to the cost to the public purse…
Tory MP Mark Pritchard pointed out that Reynolds said at different points the money would come from “existing government budgets” or possibly “fall on the Exchequer“. The Business Secretary didn’t answer beyond saying that Labour’s £2.5 billion steel pot hadn’t all been spent yet…
Now Guido understands Norwegian firm Blastr Green Steel, the preferred bidder since April, put a fully funded proposal (with no cost to the taxpayer) to ministers ahead of the announcement. Labour binned this over ‘serious concerns’ about the financing, Guido understands no one told Blastr in advance…
The Government has already handed British Steel roughly £555 million in working capital for public ownership and is sweeping the railways back into public hands. Even when private businesses offer to help the government avoid nationalisation, they get turned down. Why would any private company invest in British industry with this policy approach?
ICYMI: no2nationalisation.uk
Krishnan Guru-Murthy asked John Healey: “Just finally, I mean Andy Burnham has been very clear he wants Britain back in the European Union in his lifetime. Do you?”
The Chancellor replied: “I’m older than Andy Burnham. I don’t expect to see that.”