Government steps in on British Steel
The UK Parliament has passed emergency legislation safeguarding Britain’s steel industry, after the last remaining blast furnaces in the country faced closure.
The British Steel (Special Measures) Bill - April 2025 was passed following much discussion in the House and negotiations with Chinese-owned British Steel. This was the first time the House sat on a Saturday in over four decades.
British Steel’s parent company, Jingye, was planning to close the Scunthorpe site. Discussions had been ongoing regarding keeping the site open but no deal was found with the company.
Business and Trade Secretary Jonathan Reynolds explained, ‘The British Government offered to purchase raw materials in a way that would have ensured no losses whatsoever for Jingye. Instead, Jingye demanded hundreds of millions of pounds be transferred without conditions.’
The law passed quickly through both Houses of Parliament today and is now awaiting Royal Assent. It will become law at midnight.
Afterwards, the Prime Minister gave a statement in which he said, ‘This is a government of industry.’
The CBI responded with John Foster, Chief Policy and Campaigns Officer, saying, ‘The government's decision to take control of British Steel is a necessary outcome of last resort needed to preserve the UK's primary steel production capability … it is vital the UK doesn’t lose vital steelmaking capabilities. Looking beyond today, securing a sustainable future of steelmaking must also ensure that it is supported in the transition towards electric’.
The Bill paves the way to prevent mass redundancies and manage a transition from blast-furnace-produced steel to electric arc furnaces. Reynolds has been given emergency powers to buy raw materials and cover running costs.
A proposal to take the works into public ownership is expected to be agreed later this month.
The move, while drawing praise from many has also met with less favourable comment as blast furnaces in Port Talbot, Wales, closed last year and the Grangemouth industrial site in Scotland also closed. The Scottish site has a regeneration plan and the Welsh site is transitioning to electric steel production.
