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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.
A spokesperson for the Insolvency Service said creditors for the company could register with them. Liberty Steel has been approached for comment.
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.”
He added that, from the date the winding-up order was issued, and while the property remains occupied, business rates liability transfers to the liquidator.
Additional business rates demand notices totalling £1.75m for the period from 21 August 2025 to 31 March 2026 were issued on September 16, according to the Local Democracy Reporting Service.
“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.
An Insolvency Service spokesperson said: “We can confirm that the Official Receiver continues to progress bids for the sale of Speciality Steel UK.
“The sales process is ongoing, with the aim to complete a sale at the earliest opportunity.”
Liberty Steel and special managers from consultancy firm Teneo – appointed to assist with the liquidation – have been approached for comment.
