South Yorkshire mayor wants ‘swift progress’ on Liberty Steel future

“Swift progress” is needed to resolve the uncertainty surrounding the UK’s third-largest steelworks after it collapsed into government control, a regional mayor said.

Insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK – part of the Liberty Steel group owned by Sanjeev Gupta.

The company, which uses scrap metal to manufacture steel, employs around 1,500 workers in Rotherham and Sheffield.

South Yorkshire’s mayor Oliver Coppard said he wanted to ensure employees at Liberty Steel had the “brightest possible future”.

The firm will now be placed into the hands of a government-appointed liquidator.

The government has agreed to cover the ongoing wages and costs of the plant while a buyer is sought.

Coppard said: “[The] news about Liberty Steel is difficult, but offers the opportunity for clarity and a path forward.

“There is and will continue to be a period of uncertainty for workers at Liberty’s two sites in South Yorkshire.”

A spokesperson for the government said it remained “committed to a bright and sustainable future” for steelmaking in the UK, which the mayor welcomed.

“I now want to see swift progress from government to safeguard the unique steelmaking capabilities we have here in our region,” Coppard said.

“I will be seeking a conversation with ministers as a matter of urgency and will do everything I can to make sure that workers at Liberty Steel and the steel industry that is so integral to our identity have the brightest possible future.”

Charlotte Brumpton-Childs, GMB national officer, told BBC Breakfast: “What has happened is again another example of when the government does not have a stake in these important national assets, they are at the whim of often international owners that have profit above people and don’t have a stake in the UK national infrastructure.”

Unite general secretary Sharon Graham also urged the government to provide “long-term guarantees” to protect jobs and the company.

“If the right buyer cannot be found then the government should be prepared to run the company itself and ensure it is ready to meet the challenges of the future,” she said.

A government spokesperson said: “We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK.

“It is now for the independent official receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported.”