Government steps in to save British Steel

Apr 14, 2025

The UK Government has taken control of British Steel’s Scunthorpe plant after passing emergency legislation in a rare Saturday sitting of Parliament. The new law gives Business Secretary Jonathan Reynolds sweeping powers to intervene in the operations of the Chinese-owned site, including the ability to enter the plant by force to secure assets and ensure continued production.

The action came after Reynolds said he had no choice but to act swiftly to prevent Jingye, the plant’s owners, from shutting down the plant’s two blast furnaces, an outcome that would have ended primary steel production in the UK.

The legislation, which was passed by both the Commons and Lords, and which has now received Royal Assent, was not opposed by any major party. Conservative MPs, however, criticised the Government for acting too late. Several Conservatives also supported nationalisation, which Reynolds said may be necessary if no private buyer can be found.

For now, Jingye retains ownership, but the Government is effectively running the plant. Reynolds said ministers remain hopeful of attracting private investment to secure the site’s future despite no interested buyers.

Liberal Democrat MP Daisy Cooper backed the emergency recall of Parliament but urged the Government to exercise caution in using the powers granted.

Independent MP Jeremy Corbyn called for all UK steelmaking to be brought into public ownership. The Scunthorpe plant employs around 2,700 people.

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