Boris Johnson's government inherits British Steel liquidation aftermath

In April 2016, under Prime Minister David Cameron and while Boris Johnson served as Mayor of London, Tata Steel announced the sale of its Long Products Europe business, which included the Scunthorpe steel plant. The deal was reported to be for a nominal amount of £1, reflecting the financial struggles faced by the steel industry at that time. This transaction was part of a larger context of declining steel production and employment in the UK, primarily driven by global market pressures and increasing competition from abroad. By May 2019, the business had entered compulsory liquidation under Greybull Capital, the company that had acquired it from Tata Steel. The liquidation process led to a significant loss of jobs and further highlighted the deterioration of the UK steel sector. It occurred while Boris Johnson was serving as Prime Minister, marking a critical period for British industry. Following the liquidation, parts of the British Steel Limited, including the Scunthorpe plant, were eventually purchased by Jingye Steel in November 2019. This transaction generated conflicting reports regarding the deal's financial value, with estimates ranging from £50 million to £70 million. The acquisition was pivotal for preserving jobs and maintaining some form of steel production in the UK, but it raised questions about the long-term future of the industry. Overall, the sale and subsequent events underscore the complexities of the UK's manufacturing landscape during a time of economic transition. They also highlight the challenges policymakers face in revitalizing key industries, with the steel sector reflecting broader issues related to manufacturing resilience and global competition.