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One of the UK’s last remaining steel companies has been pushed into compulsory liquidation – and will fall into government control.

Speciality Steels UK (SSUK), part of the Liberty Steel empire owned by metals tycoon Sanjeev Gupta, employs nearly 1,500 people at sites in Rotherham and several other locations across South Yorkshire.

Behind Tata Steel and British Steel, it is the third-largest steel producer in the country.

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Sky News reported that negotiations had been underway for a deal to rescue the firm, however, they seem to have been rendered unsuccessful.

The government-run Insolvency Service confirmed it will be acting as the liquidator. It added that Teneo Financial Advisory Limited would be assisting in running the company from now on.

While the GFG Alliance, the holding company, says it is disappointed by the decision, local politicians and unions are highly critical of the group.

The government is taking over – but it doesn’t want to own SSUK


Gurpreet Narwan

Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

The collapse of Speciality Steel UK (SSUK), the UK’s third-largest steel producer, did not come as a surprise to government officials, who have in recent days been planning for this outcome.

After all, the business has been limping on for some time, weighed down by financial mismanagement and a mounting debt pile. Problems began in 2021 for GFG Alliance – the holding company, which is a conglomerate run by the metals magnate Sanjeev Gupta. Its main lender, Greensill Capital, collapsed with £3.7bn of loans to GFG still outstanding. Administrators for Greensill are still trying to recover the money.

There have been legal claims and probes since then, although GFG denies any wrongdoing. The true scale of SSUK’s financial woes are not even known because the company has not filed audited accounts for more than five years. Sanjeev Gupta is being prosecuted for failing to file accounts for many of his other businesses too.

SSUK’s creditors pushed for the company’s liquidation, but the government was braced to step in. However, the development does little to provide certainty for the business’s 1,500 workers in South Yorkshire.

The government will cover wages and costs for now but, as a letter sent by the Department for Business and Trade made clear earlier this month, the government has no intention to “own SSUK”. As with British Steel, which collapsed back in April (albeit for different reasons), the government is stepping up, but is hoping a new buyer will be found soon.

The government says wages will continue to be paid by the liquidator. A spokesperson adds that the government is still “committed to a bright and sustainable future for steelmaking and steel-making jobs in the UK”.

Financial assistance was not able to be given to SSUK by the government due to its existing financial and corporate challenges, including ownership and management.

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In a statement today, GFG’s chief transformational officer, Jeffrey Kabel said: “The decision to push Speciality Steel UK into compulsory liquidation, especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery, is irrational.

“The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight.

“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.

“Liberty has pursued all options to make its SSUK viable, including efficiency improvements, reorganisations, customer support, several attempts to find a buyer for the business and intensive negotiations with creditors to restructure debt liabilities. Liberty’s shareholder has invested nearly £200m, recognising the vital role steel plays in supplying the UK’s strategic defence, aerospace and energy industries.

“GFG will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver. GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment. GFG’s other significant business interests in the UK remain unaffected.

“Despite many challenges facing the group and the difficult market conditions, GFG has invested over £2bn into the UK economy since 2013, ensuring the survival of many GFG businesses despite operating losses and safeguarding thousands of jobs that would otherwise have been lost.”

Sanjeev Gupta in front of a the Liberty Steel Group sign. File pic: PA
Image:
Sanjeev Gupta in front of a the Liberty Steel Group sign. File pic: PA

Sarah Champion, the Labour MP for Rotherham, said GFG’s statement was “full of hollow promises”.

She added: “We know Liberty is a golden goose, but one they have starved for years.

“The speciality steel we make is unique and in high demand, it makes no financial sense that GFG furloughed the plant for nearly two years.

“Strategically, the government cannot allow Liberty Steel to fail. I am confident they will do all in their power to let it flourish.”

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Charlotte Brumpton-Childs, the national officer for the GMB union, also attacked GFG.

She said: “This is another tragedy for UK steel – and the people of South Yorkshire – this time brought on by years of chronic mismanagement by the owners.

“But this represents an opportunity for the UK government to take decisive action – as it did with British Steel – to protect this vital UK industry.”

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 steel-making 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.”

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UK ‘moving at glacial pace’ on national plan for defending foreign attack, say MPs

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UK 'moving at glacial pace' on national plan for defending foreign attack, say MPs

The UK lacks a national plan to defend itself from attack and is moving at a “glacial” pace to fix the problem despite threats from Russia and China, a report by MPs has warned.

With the whole country needing to understand what it means to be ready for war, the Defence Select Committee also said it had seen no sign of a promised “national conversation on defence and security” that was launched by Sir Keir Starmer in June.

Sky News and other journalists were even blocked on Monday from interviewing sailors aboard HMS Prince of Wales, the Royal Navy’s flagship aircraft carrier, in direct contrast to the prime minister’s stated aim of greater engagement.

Royal Navy aircraft carrier HMS Prince of Wales. File pic: AP
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Royal Navy aircraft carrier HMS Prince of Wales. File pic: AP

Public needs to know ‘what to expect’ from war

“We have repeatedly heard concerns about the UK’s ability to defend itself from attack,” said Labour MP Tan Dhesi, chair of the committee.

“Government must be willing to grasp the nettle and prioritise homeland defence and resilience.

“In achieving this, government cannot shy away from direct engagement with the public.

“Wars aren’t won just by generals, but by the whole of the population getting behind the Armed Forces and playing our part.

“There needs to be a co-ordinated effort to communicate with the public on the level of threat we face and what to expect in the event of conflict.”

The Royal Navy tracked a Russian submarine in UK waters last month.  Pic: Royal Navy/MOD
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The Royal Navy tracked a Russian submarine in UK waters last month. Pic: Royal Navy/MOD

‘The Wargame’ made real?

The findings of the report support a podcast series by Sky News and Tortoise Media called The Wargame – released in June.

It simulated a Russian attack on the UK and played out what the impact might be for the country in the absence of a credible, resourced and rehearsed national defence plan – something Britain maintained rigorously during the Cold War.

Sky News first revealed in April 2024 that the previous government no longer had such a plan, though work was under way to develop one.

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Flagship aircraft carrier to be placed under NATO command

Report’s assessment of war-readiness

The Defence Select Committee report – based on a nearly year-long inquiry – found: “The UK lacks a plan for defending the homeland and overseas territories with little progress on the Home Defence Programme.”

It said this meant the government was failing to meet a fundamental commitment to the NATO alliance – the Article 3 requirement to maintain the “capacity to resist armed attack”.

The report quoted Luke Pollard, a defence minister, acknowledging that “we have been very clear that we are not satisfied with Article 3 in the UK”.

Britain's new Ajax fighting vehicle, which arrived overdue and at great financial cost. Pic: PA
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Britain’s new Ajax fighting vehicle, which arrived overdue and at great financial cost. Pic: PA

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Yet the MPs’ report added: “Despite this recognition from government… measures to remediate seem to be moving at a glacial pace.”

It said: “Cross-government working on homeland defence and resilience is nowhere near where it needs to be. The government has said repeatedly that we are in an era of new threat, yet decision-making is slow and opaque.”

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The rebuke from the MPs was published as John Healey, the defence secretary, prepares to announce that 13 sites across the UK have been identified as possible locations for at least six new weapons factories.

“This is a new era of threat,” he will say at a speech in Westminster later.

“We are making defence an engine for growth, unambiguously backing British jobs and British skills as we make the UK better ready to fight and better able to deter future conflicts.

“This is the path that delivers national and economic security.”

Industry will be invited to submit proposals to produce ammunition and explosives, with the Ministry of Defence saying it hopes work on the first factory will begin next year.

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Ultra-processed foods leading cause of ‘chronic disease pandemic’, say experts

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Ultra-processed foods leading cause of 'chronic disease pandemic', say experts

Ultra-processed foods (UPFs) are a leading cause of a “chronic disease pandemic” linked to worsening diets, experts have warned.

UPFs include items such as processed meats, some ready meals and cereals, ice cream, crisps, biscuits, mass-produced bread and fizzy drinks.

They often contain a high level of saturated fat, salt and sugar – as well as additives such as sweeteners and preservatives.

UPFs leave less room for more nutritious foods and are also believed to negatively affect gut health.

Forty-three scientists and researchers have now sounded the alarm and accused food companies of putting “profitability above all else”.

Writing in The Lancet, they said the firms’ economic and political power is growing and “the global public health response is still nascent, akin to where the tobacco control movement was decades ago”.

They warned that while some countries have brought in controls on UPFs, policy is lagging due to “co-ordinated efforts of the industry to skew decision-making, frame policy debates in their interest, and manufacture the appearance of scientific doubt”.

Professor Chris Van Tulleken, from University College London, one of the authors, said obesity and diet-related disease had increased in line with a “three-decade history of reformulation by the food industry”.

“This is not a product level discussion. The entire diet is being ultra-processed,” he warned.

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However, several experts not involved with the article urged more research, cautioning that existing studies had shown a link with poor health and UPFs but not established causation.

Kate Halliwell, chief scientific officer at the Food and Drink Federation (FDF), which represents the industry, said companies had made a “series of changes over many years to make the food and drink we all buy healthier, in line with government guidelines”.

She said FDF-member products now contained a third less salt and sugar and a quarter fewer calories than in 2015.

Previous studies cited by the British Heart Foundation have linked UPFs to a greater risk of heart disease, stroke, and early death.

A 2023 meta analysis in the PubMed journal said evidence suggested an association between UPF intake “and the risk of overall and several cancers, including colorectal, breast and pancreatic cancer”.

Get cancer symptoms checked, charity urges

It comes as Cancer Research UK warned too many Britons are putting off getting potential symptoms checked.

A poll for the charity suggested the top reasons people delay getting potential signs of cancer checked is because of a lack of GP appointments, or thinking their symptoms might not be serious.

More than half (53%) of the 6,844 surveyed said they were put off as they believed getting seen would be difficult, while 47% said they actually had found it difficult to get an appointment.

Some 44% put it off as they though the symptom wasn’t serious, 41% believed they could manage things themselves, and 40% didn’t want to be seen as making a fuss.

Cancer Research UK said it had now trained Tesco pharmacists to spot possible cancer signs – and that people can speak to them in private if they needed.

The pharmacists will be able to give advice on next steps and whether a GP appointment is recommended.

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Scotland secure men’s World Cup spot for first time since 1998 after beating Denmark

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Scotland secure men's World Cup spot for first time since 1998 after beating Denmark

Scotland secured a place at the men’s World Cup for the first time since 1998 as stoppage-time goals by Kieran Tierney and Kenny McLean secured a thrilling 4-2 win over Denmark at Hampden Park.

Scott McTominay’s spectacular third-minute bicycle kick had given the hosts a half-time lead.

Rasmus Hojlund equalised for the Danes in the 57th minute shortly before Rasmus Kristensen was sent off, but Lawrence Shankland restored Scotland’s advantage.

When Patrick Dorgu brought Denmark level again with nine minutes remaining, it seemed they would claim the point needed to top the group and book their place at next year’s tournament in the US, Canada, and Mexico.

However, Tierney fired an unstoppable shot past Kasper Schmeichel in the third minute of stoppage time

And then, with the Denmark goalkeeper up in attack at the other end of the pitch, McLean hit a long-range effort from his own half to spark delirious scenes.

Scotland's Kenny McLean celebrates scoring his side's fourth goal against Denmark. Pic: PA
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Scotland’s Kenny McLean celebrates scoring his side’s fourth goal against Denmark. Pic: PA

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The victory saw Scotland top Group C and secure automatic qualification for the 2026 World Cup.

Head coach Steve Clarke had already led his country to back-to-back European Championships.

He told the BBC: “Scott McTominay scored the best overhead kick I’ve ever seen, and it might not have been the best goal of the night!”

Scott McTominay celebrates scoring the opening goal for Scotland. Pic: Reuters
Image:
Scott McTominay celebrates scoring the opening goal for Scotland. Pic: Reuters

Scotland captain Andy Robertson dedicated the victory to his former Liverpool teammate Diogo Jota, who died earlier this year in a car accident.

He told the BBC: “We certainly put the country through it, but I’m sure it will be worth it.”

“I couldn’t get my mate Diogo Jota out of my head today,” he added. We spoke so much together about the World Cup. When he missed out in Qatar through injury and I missed out when Scotland never went.

“We always discussed what it would be like going to this World Cup. I know he’ll be somewhere smiling over me tonight.”

The draw for the 2026 World Cup will take place in Washington on 5 December.

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