Council writes off 3m Liberty Steel rates debt

"Liberty Steel owed Rotherham Council more than 4.2m in unpaid business rates when it was issued with a compulsory winding up order in August 2025, the local authority has confirmed. Council leader Chris Read said the authority had written off more than 3m of the debt on the recommendation of external legal advisers but that this could be reversed if there was a possibility of recovering the money. The authority said it intended to submit a claim to administrators for the full outstanding balance."

""These are expected to be paid in full, though there remains uncertainty over how the liquidators will operate and for how long," he said. Read explained that the income from business rates was split between the council (49%), South Yorkshire Fire and Rescue Authority (1%), and central government (50%), with any losses also shared on the same basis."

"The steelworks, which employed nearly 1,500 workers in Rotherham and Sheffield, was placed under government control when the courts granted a compulsory winding up order. Read said: "At this stage it is too early to know whether we will receive a dividend from this claim or whether the full balance will ultimately need to be written off.""

Liberty Steel owed Rotherham Council more than 4.2m in unpaid business rates when a compulsory winding-up order was issued in August 2025. Council leader Chris Read said the authority had written off more than 3m on the recommendation of external legal advisers, but that write-off could be reversed if recovery became possible. The council intends to submit a claim to administrators for the full outstanding balance. Additional demand notices totalling 1.75m for 21 August 2025–31 March 2026 were issued on 16 September. Business rates income and losses are split 49% to the council, 1% to the fire authority, and 50% to central government. The Official Receiver is progressing bids for the sale of Speciality Steel UK and creditors may register with the Insolvency Service.

Read at www.bbc.com