Liberty Steel: Government looking at 'all options'

The government is looking at all options to make sure Liberty Steel does not collapse, Business Secretary Kwasi Kwarteng has told MPs.

Mr Kwarteng told the House of Commons he had met the firm's management several times in the past three weeks and spoke to unions last night.

Concerns over the future of Liberty Steel have grown after key financial backer, Greensill Capital, went bust.

Liberty Steel employs about 5,000 people in the UK.

Mr Kwarteng told MPs that "there is a future for the steel industry in the UK" and he hopes to support the company "in its entirety".

"We are doing all we can to look at all options to make sure that this vital piece of infrastructure continues and remains a going concern," he said.

However, the Telegraph reported that UK engineering giant Rolls-Royce was buying up enough steel to guarantee its own supplies until Christmas, in case Liberty went under.

The decision by the jet engine maker highlights the importance of Liberty in some specialist supply chains.

Labour is calling for the government to step in and save Liberty Steel. Shadow business secretary Ed Miliband said last week that the situation was "urgent and worrying" and nothing should be off the table, including nationalisation.

GFG Alliance, which owns Liberty Steel, has confirmed its cash flow has been badly affected by the collapse of Greensill Capital.

It emerged yesterday that the steel producer is asking some customers to pay upfront as it struggles with cash flow.

Liberty owns 12 steel plants in the UK, including sites at Rotherham, Motherwell and Newport.