Sir Ashley Fox MP has warned that the Government’s Steel Industry Nationalisation Bill risks leaving taxpayers with a huge financial burden while failing to address the real reason British steel manufacturing is struggling - the high cost of electricity.
During the Bill’s Second Reading debate in the House of Commons Ashley Fox challenged ministers directly on energy costs, arguing that no long-term solution for the steel industry could succeed unless Britain’s electricity market is fixed.
Intervening during the debate, Ashley Fox MP said:
“It’s unlikely that the government's wealth fund would wish to invest in British steelmaking, or indeed anyone would wish to invest in British steelmaking whilst our electricity prices are so very high. There’s no point in this Bill until we fix the electricity market in this country.”
Ashley Fox later voted against the legislation, arguing that nationalisation would not solve the underlying issues facing the steel industry and could expose taxpayers to significant long-term costs. Speaking afterwards Ashley Fox said:
“The fundamental problem facing British steel manufacturing is that energy costs in this country are far too high. Nationalisation will not solve the long-term challenges facing the industry.
“There is a real risk that taxpayers are left footing a huge bill for an industry that still cannot compete internationally because of the cost of electricity.
“Every nationalisation in the past has left taxpayers with a huge bill to pay. Past experience shows that industries run by the state are usually less efficient and less competitive than those run by private enterprise.”
Ashley Fox said the Conservatives instead support measures aimed at reducing energy costs for both households and businesses through the party’s “Cheap Power Plan”. The proposals include repealing the Climate Change Act, removing net zero levies and carbon taxes from electricity bills and scrapping what Conservatives describe as expensive subsidy schemes that increase electricity costs.
Ashley Fox also criticised Reform UK for supporting the Government’s nationalisation plans by voting with Labour, saying:
“The Conservatives are the only party making the case that businesses are run better by private enterprise than by the state”.
