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.
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
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.
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.”
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.”
The Ministry of Defence (MoD) has announced it will buy £118m worth of air defence missile systems for the British Army.
But will this new purchase protect an increasingly vulnerable UK from attack, and why now?
For more than 50 years, the British Army relied on the Rapier air defence missile system to protect deployed forces.
In 2021, that system was replaced by Sky Sabre.
Image: Soldiers demonstrating the Sky Sabre air defence missile system. Pic: MoD
The new system is mobile, ground-based, and designed to counter various aerial threats, including fighter aircraft, attack helicopters, drones, and guided munitions.
It’s known for its speed, accuracy, and ability to integrate with other military assets, including those of the Royal Navy and Royal Air Force (and NATO).
What is the Land Ceptor missile, and why do we need more of them?
Sky Sabre includes radar, command, and control capability and – most importantly – a missile to intercept incoming threats.
The Land Ceptor missile weighs around 100kg, has a 10kg warhead, and can intercept threats out to around 15 miles (25km), making it around three times more effective than the Rapier system it replaced.
Image: The Land Ceptor missile during test-firing in Sweden in 2018. File pic: MoD
When the MoD made the decision to replace the Rapier system, the global threat environment was very different to that experienced today.
Since the end of the Cold War, the UK has been involved in expeditionary warfare – wars of choice – and generally against less capable adversaries.
So, although the Land Ceptor missile is very capable, defence planning assumptions (DPAs) were that they would not need to be used in a serious way, commensurate with the threat.
However, as the Russian invasion of Ukraine has demonstrated (as has the series of Iranian attacks on Israel), significantly larger stockpiles are required against a more capable enemy.
Image: Sky Sabre has a surveillance radar. Pic: MoD
Is the UK vulnerable to missile attack?
In short, yes. Although the Land Ceptor missile does provide an excellent point-defence capability, it is not an effective counter to ballistic or hypersonic missiles – the Sea Viper mounted on Royal Navy Type 45 Destroyers using the Aster 30 missile has that capability.
In the Cold War, the UK had Bloodhound missiles deployed around the UK to provide a missile defence capability, but as the perceived risks to the UK abated following the collapse of the Soviet Union, UK missile defence fell down the priorities for the MoD.
Although the radar based at RAF Fylingdales forms part of the Ballistic Missile Early Warning System (BMEWS), and can detect incoming threats, the UK no longer has an effective interceptor to protect critical national infrastructure.
Instead, the UK relies on the layered defences of European allies to act as a deterrence against attack.
In the near term, this timely order for Land Ceptor missiles doubles the British Army’s tactical capability.
However, as the conflicts in Ukraine and the Middle East have demonstrated, ballistic (and increasingly hypersonic) missiles are being produced in increasing quantity – and quality.
Without significant (and rapid) investment, this critical gap in national military capability leaves the UK vulnerable to attack.
A newly-discovered dinosaur with an “eye-catching sail” along its back and tail is to be named after record-breaking yachtswoman Dame Ellen MacArthur.
Istiorachis macaruthurae was identified and named by Jeremy Lockwood, a PhD student at the University of Portsmouth and the Natural History Museum.
Istiorachis means “sail spine” and macaruthurae is taken from the surname of Dame Ellen, who became famous for setting a record for the fastest solo non-stop round-the-world voyage in 2005.
Dame Ellen is from the Isle of Wight, where the creature’s fossils were found.
Image: Jeremy Lockwood with the spinal column of the dinosaur. Pic: University of Portsmouth/PA
Image: Lockwood said the creature had particularly long neural spines. Pic: University of Portsmouth/PA
Before Dr Lockwood analysed them, the fossils, which date back 125 million years, were thought to be from one of the two known iguanodontian dinosaur species from the island.
“But this one had particularly long neural spines, which was very unusual,” he said.
Writing in the scientific journal Papers in Palaeontology, Dr Lockwood said his study showed the dino would have probably had a pronounced sail-like structure along its back.
The exact purpose of such features “has long been debated, with theories ranging from body heat regulation to fat storage”.
In this case, researchers think it was most likely to be for “visual signalling, possibly as part of a sexual display”.
Image: Yachtswoman Dame Ellen MacArthur in 2014. File pic: PA
For the study, the researchers compared the fossilised bones with a database of similar dinosaur backbones which allowed them to see how these sail-like formations had evolved.
Dr Lockwood said his team showed Istiorachis’s spines “weren’t just tall, they were more exaggerated than is usual in Iguanodon-like dinosaurs, which is exactly the kind of trait you’d expect to evolve through sexual selection”.
Professor Susannah Maidment, of the Natural History Museum, said: “Jeremy’s careful study of fossils that have been in museum collections for several years has brought to life the iguandontian dinosaurs of the Isle of Wight.
“His work highlights the importance of collections like those at [Isle Of Wight museum] Dinosaur Isle, where fossil specimens are preserved in perpetuity and can be studied and revised in the light of new data and new ideas about evolution.
“Over the past five years, Jeremy has single-handedly quadrupled the known diversity of the smaller iguanodontians on the Isle of Wight, and Istiorachis demonstrates we still have much to learn about Early Cretaceous ecosystems in the UK.”
On the 10th anniversary of the Shoreham air disaster, the families of some of those killed have criticised the regulator for what they describe as a “shocking” ongoing attitude towards safety.
Most of them weren’t even watching the aerobatic display overhead when they were engulfed in a fireball that swept down the dual carriageway.
Image: A crane removes the remains of the fighter jet that crashed on the A27. File pic: Reuters
Jacob Schilt, 23, and his friend Matthew Grimstone, also 23, were driving to play in a match for their football team, Worthing United FC.
Both sets of parents are deeply angry that their beloved sons have lost their lives in this way.
“It obviously changed our lives forever, and it’s a huge reminder every 22nd of August, because it’s such a public anniversary. It’s destroyed our lives really,” his mum, Caroline Shilt, said.
“It was catastrophic for all of us,” Jacob’s father, Bob, added.
Image: Jacob Schilt died in the Shoreham disaster
Image: Matthew Grimstone on his 23rd birthday, the last before he died in the Shoreham disaster
‘They had no protection’
Sue and Phil Grimstone argue that the regulator, the Civil Aviation Authority (CAA), has not been held accountable for allowing the airshow to take place where it did.
“At Shoreham, the permission given by the CAA did not allow displaying aircraft to perform over paying spectators or their parked cars,” they said.
“But aircraft were permitted to fly aerobatics directly over the A27, which was in the display area, a known busy road.
“This was about ignoring the safety of people travelling on a major road in favour of having an air show. They had no protection.”
Image: Sue and Phil Grimstone say the CAA has not been held accountable
Image: A programme for a memorial for Jacob Schilt and Matthew Grimstone
Image: Caroline and Bob Schilt
A series of catastrophic errors
The crash happened while the experienced pilot, Andy Hill, a former RAF instructor, was attempting to fly a loop in a 1950s Hawker Hunter jet.
But he made a series of catastrophic errors. His speed as the plane pitched up into the manoeuvre was far too slow, and therefore, he failed to get enough height to be able to pull out of the dive safely. The jet needed to be at least 1,500ft higher.
Mr Hill survived the crash but says he does not remember what happened, and a jury at the Old Bailey found him not guilty of gross negligence manslaughter in 2019.
Image: Andrew Hill arrives at the Old Bailey in London in 2019.
Pic: PA
When the inquest finally concluded in 2022, the coroner ruled the men had been unlawfully killed because of a series of “gross errors” committed by the pilot.
The rules around air shows have been tightened up since the crash, with stricter risk assessments, minimum height requirements, crowd protection distances, and checks on pilots.
But Jacob and Matt’s families believe the CAA still isn’t doing enough to protect people using roads near airshows, or other bystanders not attending the events themselves.
Image: Emergency services attend the scene on the A27.
Pic: PA
The families recently raised concerns about the Duxford airshow in a meeting with the CAA.
While aircraft are no longer allowed to fly aerobatics over the M11, they do so nearby – and can fly over the road at 200ft to reconfigure and return. If the M11 has queuing traffic in the area, the display must be stopped or curtailed.
The Grimstones believe this demonstrates accepting “an element of risk” and are frustrated that the CAA only commissioned an independent review looking at congested roads and third-party protection earlier this year.
“We feel the CAA are still dragging their feet when it comes to the safety of third parties on major roads directly near an air show,” they said.
The family have complained about the CAA to the parliamentary ombudsman.
Image: A memorial for the Shoreham Airshow victims on the banks of the Adur in Shoreham
‘There are still question marks’
Some experts also believe the CAA has questions to answer about a previous incident involving Mr Hill, after organisers of the 2014 Southport Airshow brought his display to an emergency stop because he had flown too close to the crowd, and beneath the minimum height for his display.
In its investigation into the Shoreham disaster, the Air Accident Investigation Branch (AAIB) later found that while the CAA inspector present had an informal discussion with the pilot, no further action was taken, and the incident was not reported to the AAIB.
Retired pilot Steve Colman has spent many years looking into what happened at Shoreham, and he believes the CAA failed to fulfil their statutory obligation to fully investigate and report the incident at Southport.
“You have to ask the question – if the Southport incident had been investigated, then was Shoreham more likely or less likely to have occurred?” he said. “I think there can only be one answer – it’s less likely to have occurred.”
Tim Loughton, who was the MP for Shoreham at the time, believes a balance must be struck.
“We don’t want to regulate these events out of existence completely. A lot of the smaller air shows no longer happened because they couldn’t comply with the new regulations […], but certainly there are still question marks over the way the CAA conducted and continues to conduct itself. I would welcome more parliamentary scrutiny.”
Image: Shoreham air crash victims (from clockwise top left) Matthew Grimstone, Graham Mallinson, Tony Brightwell, Mark Reeves, Matt Jones, Maurice Abrahams, Richard Smith, Jacob Schilt, Daniele Polito, Mark Trussler, Dylan Archer
Rob Bishton, chief executive at the CAA, said: “Our thoughts remain with the families and friends of those affected by the Shoreham Airshow crash.
“Following the crash, several investigations and safety reviews were carried out to help prevent similar incidents in the future. This included an immediate review of airshow safety and a full investigation by the Air Accidents Investigation Branch. All recommendations and safety improvements from these reviews were fully implemented.
“Airshows continue to be subject to rigorous oversight to ensure the highest possible safety standards are maintained.
“At a previous airshow in 2014 the pilot involved in the Shoreham accident was instructed to abort a display by the show’s flying director. This incident was investigated by the UK Civil Aviation Authority and regulatory action was taken.”
Mr Bishton added: “As part of the work to review the safety oversight of airshows following the tragic Shoreham crash, the actions taken by the regulator following such a stop call were enhanced.”
But the families of those killed still believe much more could be done.