The UK Government has assumed control of British Steel, invoking newly passed emergency legislation to keep the Scunthorpe-based plant operational. This move, approved by Parliament in a rare Saturday session, highlights the Government’s determination to preserve domestic steel production in the face of a potential shutdown by current owners Jingye.
Under the legislation, the Business Secretary gains the authority to manage the site’s operations if necessary, ensuring that blast furnaces remain active and Britain can produce steel from scratch. While the owners maintain formal ownership of British Steel for now, the Government considers nationalisation “the likely option” if no private investors step forward to rescue the business.
The primary objective is to safeguard 2,700 jobs at the plant, though the financial burden on taxpayers could be significant if the Government takes full control. Ministers see this step as critical to preserving the country’s industrial capacity, pointing out that domestic steel is needed for major infrastructure initiatives, national security, and to uphold Britain’s standing as a key global producer.
Prime Minister Sir Keir Starmer, said:
“Today, my Government has stepped in to save British steel. We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the industry’s future.”
Emergency legislation details
Parliament was recalled from the Easter recess for an extraordinary joint session in the Commons and the Lords. The bill rapidly gained Royal Assent with little resistance from opposition parties, who largely agreed on the importance of protecting primary steel production in the UK. However, they also criticised the Government for failing to act sooner, arguing that earlier intervention might have ensured a more stable transition.
The new law gives the Business Secretary sweeping powers, including the right to enter and secure assets if there is any risk of shutdown. The immediate trigger for passing the legislation was Jingye’s reported intention to suspend payments for raw materials, effectively halting blast furnace operations. Without decisive action, the plant risked closure, and the UK would have been left reliant on steel imports.
Impact on stakeholders
While ownership remains technically unchanged, Government officials and legal advisers arrived in Scunthorpe and prepared to take operational control. Unions, political figures, and local communities have long campaigned to protect domestic steel jobs, citing the industry’s historical significance and the potential ripple effect on other sectors.
Several political figures have also suggested extending similar protections to steel plants in other parts of the UK, such as Port Talbot in Wales, and questioned why the legislation applies only to England. The Government has countered that the situation at Scunthorpe is unique because the site was on the brink of permanent closure, whereas other cases did not reach the same level of urgency.
Ministers remain open to private sector offers that could save the loss-making plant. However, no viable commercial entity has shown interest in investing on the scale required to sustain or modernise the operation. As such, nationalisation is the most probable outcome unless a new buyer materialises soon.
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