-
UK government must save Liberty Steel soon to protect supply chain jobs, warns Labour

Party says insolvency could threaten thousands of workers if owner Sanjeev Gupta fails to find new lender
The Labour party has called for the government to step in to save Liberty Steel from an insolvency that could threaten thousands of supply chain jobs if owner Sanjeev Gupta fails to find a new lender to prop up his metals empire.
Gupta is scrambling to refinance his companies, after the collapse of Greensill Capital, which lent him as much as $5bn (£3.6bn). The collapse has raised concerns over the future of companies under Gupta’s GFG umbrella, including about 3,000 Liberty Steel workers in the UK as well as about 35,000 workers across the world.
The Conservative government is preparing to intervene to save UK steel jobs only if Liberty Steel fails to refinance and becomes insolvent. Labour has said that would be too late for as many as 3,300 workers in companies that supply Liberty. In an insolvency suppliers’ bills are often left unpaid, even if a business’s assets are later bought.
Lucy Powell, Labour’s shadow business minister, said a government commitment to stepping in before insolvency could allow suppliers, ranging from cleaners to makers of machine components, to continue to deal with Liberty without fearing losses.
“The people who lose out most from the option of becoming insolvent are the supply chain,” Powell said. “If the government were to indicate this were an option that would inject confidence into the supply chain.”
Government sources have indicated that a leading option for a potential Liberty collapse is to copy the British Steel rescue. After British Steel entered liquidation in 2019 an official receiver was appointed to run it with a government indemnity until a buyer, China’s Jingye, was found.
The whole process cost the UK government nearly £600m. However, Chris McDonald, chief executive of the Materials Processing Institute, a steel research centre, said the supply chain also bore costs running to hundreds of millions of pounds. McDonald has said a Liberty collapse could cost its suppliers £350m.
“What was slightly forgotten about
It is understood that Labour’s preference would be for GFG to find a new lender, preventing the need for any government intervention. The party has previously called for the government to commit to using UK steel for defence and national infrastructure to help the industry.
Any attempt to rescue the various Liberty Steel plants, including Rotherham and Stocksbridge in South Yorkshire, could be complicated by the labyrinthine corporate structure used by Gupta’s companies.
Business secretary Kwasi Kwarteng previously turned down a request from Gupta for a £170m loan because he did not receive guarantees that it would be used exclusively to support UK assets, he told MPs at a committee hearing last week.
source: Jasper Jolly
Levant
You May Also Like
Popular Posts
Caricature
BENEFIT Sponsors BuildHer...
- April 23, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!