Tata Steel: Emergency commons debate to be held on steel crisis

Labour has warned the industry is “hanging by a thread” as the search for a buyer for Tata Steel's UK business has started

The future of Port Talbot steelworks remains in doubt (PA)

MPs are to hold an emergency three-hour meeting to discuss the UK steel crisis, after Angela Eagle, Labour’s shadow Business Secretary secured an urgent slot in the chamber.

Labour has warned the industry is “hanging by a thread” as the search for a buyer for Tata Steel's UK business has started, with “many tens” of firms set to be contacted in the hope of saving thousands of jobs.

Koushi Chatterjee, executive group director, said the aim was to sell the assets as a whole rather than splitting the business.

Tata Steel has sold its Long Products Europe business, including its Scunthorpe plant, to investment firm Greybull Capital for a token £1 in a move that is set to safeguard more than 4,000 jobs on Monday. But workers have been asked to accept pay cuts and less generous pension’s arrangements.

The sale covers several UK-based assets including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France.

The future of Port Talbot steelworks remains in doubt, but one potential buyer, Liberty House, has expressed an interest.

Sanjeev Gupta, the head of the Liberty Group, held talks with the Government and has raised hopes that jobs could be saved, especially at the huge plant.

Asked about his possible takeover of the Port Talbot steel works, he said:

“Our engagement will depend very much on what Tata and the Government are prepare to do to help save these businesses.”

Sajid Javid Business Secretary told the Commons the Government was working very hard to find a buyer for the Port Talbot plant.

The Government stands ready to help, which “includes looking at the possibility of co-investing with a buyer on commercial terms,” he told the Commons on Monday.