The government is facing a fresh crisis this morning. Hugo Boss has been blocked from receiving a multi-million pound payout. The payment was part of a business support scheme. Now, unions are demanding urgent action to protect the UK's sovereign steel industry.
The story broke late last night. A Whitehall source confirmed the block. It comes after a furious lobbying campaign by steel unions. They argue that foreign-owned firms like Hugo Boss do not deserve taxpayer cash. Not when British steel is on its knees.
The numbers are stark. UK steel production has fallen 12% this year. Thousands of jobs hang in the balance. The unions are calling for a ministerial statement. They want guarantees that no further payments will go to such companies.
This is a political grenade for Number 10. The PM is already under pressure from his own backbenches. Red wall MPs are demanding a 'Buy British' steel policy. They see this as a betrayal of the levelling up agenda.
One senior Labour source told me: "This is a test. If the government caves to foreign fashion brands while our steelworkers lose their jobs, there will be hell to pay."
The irony is not lost on Westminster. Hugo Boss. A German luxury brand. Being bailed out while Port Talbot smoulders. This is a gift to the opposition.
I am told the Business Secretary is convening an emergency meeting this afternoon. The unions want to be in the room. They are threatening strikes if their demands are ignored. The mood is combustible.
Let's be clear. This is not just about one payment. It is about the future of British manufacturing. The Treasury sees the financial logic. But politics is not played with spreadsheets. It is played with blood and guts.
Watch this space. The next 24 hours will be decisive. The steel town MPs are mobilising. They want a full debate in the Commons. The Speaker will be under pressure to grant an urgent question.
My guess? The government will blink. They will announce a review. They will fudge. But the damage is done. The message is clear: foreign brands get cash, British steel gets rhetoric. That is a dangerous narrative for a government already bleeding support.
For now, the unions are holding fire. But the match is lit. This story is not going away.
