Parliamentary inquiry launched following British Steel collapse

MPs will quiz one of British Steel’s former owners on the firm’s collapse later this month as it launched an inquiry into the UK’s steel industry.

The move by the Business, Energy and Industrial Strategy committee follows the liquidation of British Steel last month and concerns about the impact of Brexit on the steel industry.

The committee will look at the role of former owner Greybull Capital, and the government, in the company’s collapse.

MPs said they wanted to hold public evidence sessions with Greybull and the business secretary, among others.

Greybull managing partner Marc Meyohas will appear before MPs in late June.

British Steel was placed into compulsory liquidation on 22 May, putting 5,000 jobs at risk and endangering 20,000 in the supply chain.

It followed a breakdown in rescue talks between the government and private equity firm Greybull.

The government is covering the firm’s wage bill for now, but if a new buyer cannot be found it could be wound up and redundancies would follow.

The Official Receiver has said it has made contact with more than 80 potential buyers .

Rachel Reeves, who chairs the Business Committee, said: “It is vital that the government and Official Receiver do all they can to secure a viable future for British Steel.

“However, as a select committee we want to examine questions around the collapse of British Steel and the government’s approach, as well as about Greybull Capital’s stewardship and its commitments to investing in its future.

“More broadly, we want to examine the serious challenges facing the future of the steel sector in the UK.”

Reeves said the inquiry would examine the serious challenges being faced by the steel sector in the UK.