Keir Starmer is seizing control of British Steel to prevent the Scunthorpe plant from being shut down by its Chinese owner, Jingye. The move paves the way for nationalisation and will give the business secretary, Jonathan Reynolds, the power to direct the company.
The UK government has granted a recall of parliament on Saturday, with MPs set to debate emergency laws that will enable Reynolds to order the company to buy raw materials to keep two blast furnaces running at the plant. The taxpayer will take on the costs of these purchases, which total around £700,000 a day.
Jingye has said it is losing around this amount daily, and the issue of nationalisation is likely to be dealt with separately but is currently being considered as a possible outcome. Senior sources say that the government is looking at potential private sector partners for a transfer of ownership and co-investment.
The company’s owner has declined to comment, but government sources claim that generous offers had been made to Jingye that any rational actor would have accepted. The UK government is taking action to keep the furnaces going in order to continue talks about the next steps.
Prime Minister Keir Starmer stated on Friday that “the future of British steel hangs in the balance” and he will not stand by while the last blast furnaces in the UK are closed, shutting an essential industry. The GMB union has welcomed the move, saying it is a necessary step to save the UK steel industry.
The government aims to get emergency legislation through parliament and the Lords in one day of sitting. Labour MPs have been told to return to Westminster to support the passage of the legislation.
Source: https://www.theguardian.com/business/2025/apr/11/parliament-recalled-to-discuss-british-steel-nationalisation