Lutnick on British Steel: UK doesn't get punished for that

Lutnick on British Steel: UK doesn't get punished for that

The British government has taken control of a part of Liberty Steel, owned by commodities tycoon Sanjeev Gupta, after the business was placed into liquidation following a petition from its creditors on Thursday [1]. This move marks the second intervention by the government in the steel industry, following its takeover of British Steel's loss-making Scunthorpe plant in April.

The British High Court approved a petition for Yorkshire-based Speciality Steel UK, one of Britain's largest steelworks, to be placed into compulsory liquidation. The business, which employs 1,450 people and produces steel used in aerospace, defense, and power generation, will be managed by a government-appointed liquidator and managers from consultancy Teneo [1].

The government will cover the ongoing costs of the business while it tries to find a buyer. Liberty Steel's Chief Transformation Officer, Jeffrey Kabel, criticized the decision, stating that the plan presented by the company would have secured new investment into the steel industry. Kabel said, "Liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers" [1].

Liberty Steel is part of Gupta's family conglomerate, GFG Alliance, which has been refinancing its businesses in steel, aluminum, and energy after its backer, supply chain finance firm Greensill, filed for insolvency in 2021. The company also has operations in other parts of Europe, Australia, and the United States [1].

The government's takeover of Liberty Steel comes as the British military faces criticism over its actions in Kenya. For the first time, the British government has agreed to pay out millions in pounds to Kenyans to settle a civil lawsuit after its military forces had their legal immunity in Kenya lifted [2]. This payout follows a landmark ruling that stripped the U.K. government and British Army of immunity from Kenyan civil suits.

The British military's conduct in Kenya has been under increasing scrutiny, with allegations of misconduct and demands for a review of the military pact between the two nations growing louder. The century-old military pact between Kenya and Britain, the country's former colonial ruler, has come under increasing scrutiny over alleged misconduct of British soldiers [2].

References:
[1] https://www.reuters.com/world/uk/uk-government-take-over-liberty-steel-division-after-collapse-2025-08-21/
[2] https://abcnews.go.com/International/wireStory/british-army-faces-criticism-despite-historic-payout-kenyan-124976612