Richard Tice has called for the government to save British Steel but the former boss of the firm is a director of Quidnet REIT, which bought the firm’s site in Darlington in 2022
British Steel has scaled back its presence in the North East following threats from Reform UK’s Richard Tice’s company to raise the rent at their site.
Recently, the Boston and Skegness MP has been a vocal proponent of government intervention for British Steel, advocating for the nationalisation of the struggling Scunthorpe plant. During the Commons’ emergency Saturday debate on a rescue strategy for the facility, he sported a “Save our Steel” badge and challenged ministers to “show your cojones” by bringing the company under public ownership.
However, the deputy leader of Reform is also serving as a director of Quidnet REIT, which acquired the British Steel site in Darlington in 2022. The property firm noted the acquisition as an “opportunity to improve the rental income for this asset”.
Moreover, the company indicated that the purchase of the 7.48-acre site could pave the way “either to relet to British Steel at a higher rent, or to refurbish and reprofile into much smaller units to let at much higher rents”.
Following these developments, British Steel announced the subsequent year its decision to cease operations at the Darlington facility and relocate to Skinningrove, which is a 50-minute coastal drive away, reports the Mirror.
In 2023, Mr Tice took pride in stating: “Rental income is rising substantially, with higher rental levels.”
Meanwhile, Quidnet reported a 27% increase in rental revenue for 2022, amounting to £1.94 million and yielding a neat £1.21 million profit after tax from its varied property portfolio.
British Steel clarified at the time that all employees from the Darlington site would be offered positions at Skinningrove, stressing the firm’s intention to enhance efficiency by reducing material transportation between the two locations.
They declared: “The new Skinningrove facility will replace the services currently offered at the company’s site in Darlington, which stores and cuts profiles to customer requirements.”
The Special Profiles Plant Manager acknowledged the company’s timely supply practices, stating, “We already supply customers on a just-in-time basis, but this new facility will help streamline our operations and further improve efficiencies.”
Speaking to the Mirror, Mr. Tice confirmed: “Yes they left in early 2024 so no conflict of interest. As I clarified to Mirror many months ago.”
He also dismissed certain claims, adding: “It’s completely untrue that the site shut down because of rent.”
British Steel opted for expansion by developing a brand new unit at one of their current facilities in Skillingrove, aiming for seamless integration with their entire manufacturing process.
