Skip to content 
Search

Latest Stories

Deal to sell steelworks to Sanjeev Gupta comes under scrutiny

Deal to sell steelworks to Sanjeev Gupta comes under scrutiny
MINISTERS have admitted that Nicola Sturgeon's government may have broken state aid rules in a deal to sell steelworks to Sanjeev Gupta, reported The Telegraph.
There is growing scrutiny of the SNP's ties to the industrialist as he fights to keep his empire afloat, it was reported.
The Scottish business minister Ivan McKee said that officials have been advised of problems with part of a contract signed to push through a 2016 takeover of the facility in Motherwell, The Telegraph report added.
The SNP government bought the site for £1 from Tata Steel, then immediately sold it to Gupta's business Liberty Steel as part of a deal they claim was intended to protect jobs.
Ministers agreed to protect Tata from any future clean-up costs for environmental damage to the site.

According to the report, Sturgeon, the first minister, personally attended the reopening of the plant after securing the agreement.

The deal has been re-examined amid concerns over the viability of Liberty after its future was thrown into doubt following the collapse of Greensill Capital, the main lender to its parent company.
Gupta's businesses are now being investigated by the Serious Fraud Office. However, they denied wrongdoing.
“The rescue deal facilitated by the Scottish Government in 2016 was agreed at pace and in good faith to maintain employment at Dalzell and Clydebridge. Without our intervention the likelihood of anyone being employed producing steel plate in Scotland today would be very slim," McKee was quoted as saying by the newspaper.
“The contract arrangement has now been re-examined as part of the ongoing contingency planning process and it is considered that the clause providing the indemnity to Tata Steel may represent State aid, even though no money has, or may ever, change hands."
Willie Rennie, a Liberal Democrat MSP who is the party's economic spokesman in Scotland, said the government should come clean on whether the error could have an impact on government funds or jobs in the region.
The SNP's warning on state aid means costs for any clean-up operation at the site could fall to previous owner Tata Steel after all. Tata said the contract is binding and the Scottish government has asked UK ministers to refer the case to the European Commission.
A spokesman for Tata Steel, told The Telegraph: "We consider the 2016 sale agreement which was negotiated in good faith between the Scottish Government and Tata Steel on commercial terms to be valid and binding in all aspects.
"We would welcome further dialogue with the Scottish Government on this matter to understand its position in more detail. As this issue is connected to a potential state aid issue, we are also in dialogue with the UK Government."
The Scottish Government has faced criticism for other deals with Gupta. It came under pressure for providing "jaw-dropping" guarantees worth a total of £586m to Gupta when he bought an aluminium smelter in Lochaber.

More For You

Spain earthquakes

Almería airport sustained damage in its departures lounge

CSmonitor

Spain earthquakes: What we know about the 5.4-magnitude tremor that shook tourist regions

Highlights:

  • A 5.4-magnitude earthquake struck off the coast of Almería, southern Spain, at 7.13 am on Monday
  • The tremor was felt in over 50 towns, including tourist destinations like Malaga
  • No injuries have been reported, but building damage occurred in airports and showrooms
  • The quake follows a weekend of floods and severe weather in Spain
  • No UK Foreign Office travel warnings have been issued, but travellers are advised to check local alerts

Southern Spain was rocked by a 5.4-magnitude earthquake on the morning of Monda,y 14 July, with tremors felt across several provinces, including popular tourist destinations.

The earthquake struck at 7.13 am off the coast of Almería, nearly two miles below sea level, according to Spain’s National Geographic Institute (IGN). Despite its intensity, there have been no reported injuries, although some structural damage has occurred.

Keep ReadingShow less
Air India flight crash
Air India's Boeing 787-8 aircraft, operating flight AI-171 to London Gatwick, crashed into a medical hostel complex shortly after take-off from Ahmedabad on June 12.
Getty Images

Air India chief says crash report opens new questions, no conclusions yet

A PRELIMINARY report into last month's Air India plane crash that killed 260 people has raised further questions, and the investigation is still ongoing, Air India CEO Campbell Wilson said in a memo to staff on Monday.

The initial report, released by India’s Aircraft Accident Investigation Bureau (AAIB) on Saturday, pointed to confusion in the cockpit shortly before the Boeing 787 Dreamliner crashed.

Keep ReadingShow less
Trump-Getty

Trump will become the first elected political leader in modern times to be hosted for two state visits by a British monarch. (Photo: Getty Images)

Getty Images

King Charles to host Donald Trump for state visit in September

KING CHARLES will host US president Donald Trump in September for a second state visit to Britain, Buckingham Palace announced on Monday.

The visit is scheduled to take place from 17 to 19 September.

Keep ReadingShow less
southend london plane crash

A plume of black smoke rises from an area near the runway after a small plane crash, as seen from inside a building at London Southend Airport on July 13, 2025. (Photo: Reuters)

Reuters

Southend Airport closed after plane crash

LONDON Southend Airport in Essex has been closed until further notice after a small plane crashed at the airport on England’s south-east coast on Sunday, according to police.

In a post on X, London Southend Airport said all flights to and from the airport have been cancelled while emergency services, police, and air accident investigators are at the scene.

Keep ReadingShow less
Rachel Reeves

'This fund will give hundreds of thousands of children, young people and their families a better chance,' Reeves said in a statement. (Photo: Getty Images)

Getty Images

Government launches £500 million fund for vulnerable children

THE UK government on Sunday launched a £500 million Better Futures Fund aimed at supporting up to 200,000 vulnerable children over the next 10 years.

According to the government, the fund will focus on helping struggling families by improving children's access to education and ensuring a safe home environment.

Keep ReadingShow less