Rotherham Council leader calls for long-term plan for Liberty Steel
Nearly 1,500 people are employed at the company’s sites in Rotherham and Sheffield, which were taken into receivership last month
The leader of Rotherham Council has urged the government to provide long-term assurances for Liberty Steel workers after the company was placed under government control.
Nearly 1,500 people are employed at the company’s sites in Rotherham and Sheffield, which were taken into receivership last month after a High Court judge found Liberty’s Speciality Steels UK arm was “hopelessly insolvent”.
The court heard the company had just £600,000 in the bank against a monthly wage bill of £3.7m. It has not produced steel since July 2024, with most workers on a form of furlough, receiving 85 per cent of their wages.
The government has agreed to cover pay and operating costs while the business is run by the Official Receiver and special managers from consultancy firm Teneo.
Speaking at a full council meeting on September 10, Coun Chris Read said: “Nearly one and a half thousand people across the borough and the wider sub region are employed in the business. I’m pleased that the Government has made the announcement that it will take indirect control of the steel works as part of the receivership process, but I’m very conscious that that support, which is now directly employing, paying the wages of the staff at those sites, is time limited.
“It is essential that a long-term solution is identified and a buyer, whether in a public buyer or a private buyer, is identified to ensure the continued success of the steel works and actually bringing back the overwhelming majority of those staff into work, rather than in the furlough state in which they’ve been held. “I’ve written jointly to the Secretary of State, along with South Yorkshire Mayor Oliver Coppard and the leader of Sheffield City Council councillor Tom Hunt.
“We need to have assurance from the Government about ensuring the business will be continued until that buyer can be found, or until a solution which may involve the fellowship can be assured. I’ll continue to keep you posted on that work.”
Liberty Steel, part of Sanjeev Gupta’s GFG Alliance, was placed into receivership in August. The government has promised to set out a new steel strategy later this year.