Ben Houchen invited Jacob Young to British Steel meeting despite Redcar MP recusing himself

Levelling Up Minister Jacob Young was listed as an attendee for a planned meeting about British Steel, despite having recused himself from matters relating to the company last year.

Amongst documents released from a freedom of information request (FOI) by Private Eye and seen by The Yorkshire Post was an email from Tees Valley mayor Ben Houchen to business secretary Kemi Badenoch’s office in January this year, requesting a meeting about British Steel.

“Ben Houchen would like to arrange a meeting… to discuss British Steel. Also joining the mayor will be Sir Simon Clarke MP and Jacob Young MP,” the email stated.

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In November last year the Department for Levelling Up, Housing and Communities (DLUHC) told The Yorkshire Post that government minister Jacob Young had recused himself from any work on British Steel following the announcement the company planned to build an electric arc furnace (EAF) at Lackenby, in Mr Young’s constituency.

Levelling Up Minister Jacob Young MP.Levelling Up Minister Jacob Young MP.
Levelling Up Minister Jacob Young MP.

The Chinese-owned firm’s plans to build an EAF are contingent on what it says is “appropriate support from the UK Government”. Negotiations are ongoing between the company and government around a potential subsidy of up to £500m, similar to one given to Tata Steel to close their traditional blast furnaces and change production to less-carbon intensive EAFs.

EAFs recycle scrap steel, but need much less labour than traditional steelmaking, although they need high amounts of energy. This will be provided to British Steel by a private network and sold by Steel River Energy, a company set up and 90 per cent owned by Teesworks partners Chris Musgrave and Martin Corney. The remaining 10 per cent is owned by the public sector.

The introduction of an EAF on Teesside will lead to up to 300 new jobs. However, the closure of British Steel’s blast furnaces in Scunthorpe and replacement with an EAF will potentially lead to up to 2,000 job losses in North Lincolnshire.

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Conservative mayor Lord Houchen has celebrated British Steel’s decision to locate an EAF on Teesside as a symbolic victory for a traditional steelmaking area which saw its steelworks shut in 2015.

Ms Badenoch’s office responded to Lord Houchen’s email saying she was unable to arrange any such meeting due to “diary constraints”.

Other correspondence released by the FOI shows Lord Houchen indicating to British Steel President and CEO Xijun Cao in November 2023 that he would “directly challenge government on British Steel’s behalf” to help secure state-backed incentives for the business.

Jacob Young told The Yorkshire Post: "The Tees Valley Mayor requested a meeting with the Secretary of State and invited me to that meeting as the MP for Redcar.

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"I have recused myself, as a Minister from DLUHC, from making any decisions about the matter as this allows me to act in my capacity as constituency MP.

"This is entirely correct and proper. Recusing myself as a Minister doesn't mean I have to be left in the dark about matters concerning my constituency."

A spokesperson for DLUHC added: “As soon as it was confirmed that British Steel were planning operations in his Redcar constituency last November, Minister Young recused himself from all decision-making for operations relating to British Steel in Teesside. He has had no involvement with them in his capacity as a government minister, in line with the ministerial code.”

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