The UK government has taken emergency action to prevent the closure of British Steel’s Scunthorpe plant, one of the country’s key steelworks. A rare Saturday sitting of Parliament has been convened to pass legislation that could see ministers take control of the plant, halting the closure of its blast furnaces, which have been deemed financially unsustainable by its Chinese owner, Jingye.
The proposed law is a significant step towards potential nationalisation, with Prime Minister Rishi Sunak stating that “all options” remain on the table. Sir Keir Starmer, leader of the opposition Labour Party, emphasized that the legislation would allow the government to direct operations at the site to protect thousands of jobs. Steelmaking, he noted, is critical to the country’s economic future, and he pledged to act in the national interest to secure British jobs.
The move has been welcomed by trade unions, including Unite and the GMB, which see it as a temporary reprieve for workers while a long-term solution is negotiated. GMB general secretary Sharon Graham stated that the government could not allow such a vital industry to collapse. The steelworkers’ union, Community, warned that the UK would become the only G7 nation without primary steelmaking capacity if the plant closed.
However, the government’s response has drawn criticism from some quarters. Conservative leader Kemi Badenoch accused the government of mishandling negotiations, leading to the last-minute recall of Parliament. Reform UK leader Nigel Farage called for immediate nationalisation, labeling the government’s plan a “short-term sticking plaster.”
Jingye, which bought British Steel in 2020, has invested heavily in the company but faces daily financial losses of approximately £700,000. Despite the government’s offers, including a £500m support package for upgrading the plant’s furnaces, the company has refused to agree to a deal, claiming that market conditions and high transition costs are insurmountable.
As negotiations continue, the government remains focused on finding a viable solution to preserve the Scunthorpe site and protect the future of the UK’s steel industry.
