The government has opted not to intervene in proposals to close and redevelop part of Chatham Docks in Kent, a scheme which one of the world’s largest steel companies had previously warned could lead to one of its divisions abandoning the UK.
Sky News has seen a letter from the Ministry of Housing, Communities and Local Government (MHCLG) which notifies Medway Council that it has decided not to call in an application from Peel Waters, and instead allow it to be determined by the local authority.
Medway Council has already recommended the scheme for approval, which prompted ArcelorMittal to warn in May that the Docks’ closure could have “seismic adverse consequences… [for] the British economy and multiple strategic industries”.
The letter, dated 25 October, says that the decision not to intervene was made by Rushanara Ali, parliamentary under-secretary at MHCLG, on behalf of housing secretary and deputy prime minister Angela Rayner.
ArcelorMittal’s UK construction solutions chief, Matthew Brooks, wrote to Michael Gove, the then housing secretary, in May to notify the government that if the scheme was approved, the company would leave the site “and, more than likely, cease operations in Britain, given the lack of suitable alternative sites”.
In the letter to Medway Council, an official at the planning casework unit of MCHLG said Ms Rayner had “carefully considered policy on calling in planning applications, as set out in the Written Ministerial Statement dated 26 October 2012”.
“The policy makes it clear that the power to call in a case will only be used very selectively.
“This policy also gives examples of the types of issues which may lead her to conclude, in her opinion that the application should be called in.
“The Secretary of State has decided not to call in this application.
“She is content that it should be determined by the local planning authority.”
ArcelorMittal, which is one of the tenants at the site, uses it to supply reinforced steel to the construction industry in Britain, and employs dozens of people there.
More than 1,400 people overall work at the Docks and in the local supply chain.
Peel Waters has said it will build thousands of houses at the site.
In a statement issued in response to an enquiry from Sky News, Mr Brooks said: “We can confirm we have received a letter from the government saying the future of Chatham Docks is a local planning decision to be made by Medway Council alone.
“We are extremely surprised by this view given the significance of the Docks for the entire steel and construction sectors, and we are now considering our next steps on this matter given the potential damage the closure of the Docks will cause to the economy.
Ms Rayner’s department has been contacted for comment.