Breaking Down the Steel Industry (Special Measures) Act 2025

The Steel Industry (Special Measures) Act 2025 is a decisive piece of legislation aimed at securing the future of the UK steel industry. Here's what you need to know:

What is a "Steel Undertaking"? The Act defines a "steel undertaking" as any business involved in the manufacture of steel. This broad definition ensures that all relevant entities within the steel sector are covered.

Directions for Asset Use The Secretary of State is empowered to issue directives to steel undertakings regarding the use of their assets. This power is invoked if assets in England are unused or at risk of being unused, and the public interest demands their continued operation. The Secretary can direct how assets should be utilized or preserved, ensuring they are used safely and continuously.

Consequences of Non-Compliance Should a steel undertaking disregard these directives, the Secretary of State can take control of the assets to maintain their operation. This includes entering premises, preventing asset disposal, and implementing management changes.

Legal Ramifications Failure to comply with directives can lead to criminal charges. Individuals or entities obstructing the directives face the possibility of imprisonment or fines. The Act empowers the Secretary of State to seek injunctions from the High Court to prevent potential offences.

Indemnities and Compensation The Act provides indemnities for actions taken under its directives, ensuring that compliance does not result in legal repercussions for individuals or companies. Additionally, a compensation scheme is established to offset losses incurred due to compliance with the Act.

Financial Support The government will finance any expenses related to the enforcement of this Act, ensuring that the necessary resources are available to uphold its provisions.

Scope and Implementation The Act is limited to England and Wales and came into force immediately upon its passage on April 12, 2025.

This legislation underscores the government's commitment to maintaining the viability of the steel industry, safeguarding jobs, and ensuring the continued use of vital industrial assets.