British Steel Halts Redundancy Plans After Government Takeover
British Steel has halted a consultation on making redundant 2,700 workers at their Scunthorpe mill, following the emergency takeover by the government.
Lisa Coulson, the interim chief commercial officer at British Steel, confirmed on Tuesday that she was closing the consultation 'without action.'
British Steel also confirmed that efforts to secure the necessary raw materials have been successful, allowing the mill to keep both blast furnaces running continuously.
Coulson said: 'This has been a difficult and worrying time for British Steel staff and their families. I can, however, confirm that we are closing the redundancy consultation without action.'
She added that since the government passed emergency legislation allowing it to take control of the steelworks, 'we have been working day and night to ensure we are able to stabilise our operations.'
'The work done to secure the raw materials we need for both Queen Anne and Queen Bess blast furnaces means we are able to run both continuously,' Coulson said.
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Last month, Chinese firm Jingye, which bought British Steel in 2020, announced that it was planning to shut down Scunthorpe's blast furnaces and opened a consultation on making the workforce redundant.
However, on April 12, parliamentarians passed the Steel Industry (Special Measures) Act,
No Options Off the Table
The government is currently overseeing the short term prospects of the steel mill, but has not ruled out taking it completely under public ownership if a private investor is not found.
Minister for industry Sarah Jones
Jones said that 'all options are on the table' in terms of addressing British Steel's long-term future, and the future of virgin steel production in the UK.
She said that she met with officials from Jingye on April 16, adding that 'dialogue will continue as we find a way forward in the national interest that safeguards steelmaking and protects jobs.'
During the ensuing debate, Reform UK leader Richard Tice requested a timeline from the Labour minister for progressing with nationalisation, stating, 'We fully support this and encourage the government to move forward with it.'
Jones said that while it remains the government's position to find a commercial business to invest alongside government, 'we will do whatever it takes to secure the future of steelmaking and protect those jobs, for national security and for the supply chains.'
Workers in the rail and sections hot end rolling mill at the British Steel site in Scunthorpe, Lincolnshire, England, on April 17, 2025.
Danny Lawson/PA Wire
'No options are off the table,' she said, adding that 'although nationalisation is the most likely option, we would prefer a commercially run business.'
'We continue having many conversations, and as soon as we have an answer, we will come to this House,' she said.
'Botched Nationalisation'
Conservative shadow business secretary Andrew Griffith expressed concerns over the potential cost to taxpayers that full nationalisation could bring. He also criticised the government for having 'no plan' and for not publishing an impact assessment before committing to British Steel's rescue.
The shadow secretary of state for business and trade said the government 'failed to prepare, they bungled negotiations, and they took too long to listen to the warnings.'
Griffith said: 'What do we have to show for it? We have this botched nationalisation and a potential bill for the taxpayer stretching into the billions. I say billions, but it remains entirely unclear how much this bungled 11th-hour decision will cost, while the assets still belong to China.'
Jones responded that while Griffith had asked a reasonable question about the costs, 'matters at the moment are sensitive and commercially confidential, and I hope he will be assured that we will publish accounts in due course.'
Workers in the rail and sections hot end rolling mill at the British Steel site in Scunthorpe, Lincolnshire, England, on April 17, 2025.
Danny Lawson/PA Wire
Jones told MPs: 'We have assured this House time and again that steel has a bright future under this government, and I restate that today.
'Steel is fundamental to Britain's industrial strength and to our identity as a global power, and we will never hesitate to protect it. We have committed to update both Houses as policy develops and a longer-term strategy is formulated.'
In January, the government
The government said the Steel Council would meet regularly ahead of the planned launch of the Steel Strategy, which will aim to increase investment, production, and jobs creation.
Jones said that the government aims to publish the Steel Strategy this spring.
PA Media contributed to this report.
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