Emergency vote on nationalising British Steel as future 'hangs in balance'

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11-04-2025

The government is considering nationalising British Steel in a bid to protect the Scunthorpe plant from closure - a move that could cause ripple effects across Teesside.
Parliament will be recalled on Saturday - the first time on this day since 1982 - to debate giving Government the power to direct steel companies in England.
Both the Commons and the Lords will return to debate a law aimed at securing the future of British Steel's Scunthorpe plant in North Lincolnshire.
Prime Minister Keir Starmer said the future of British steel 'hangs in the balance".
Owner Jingye plans to close the blast furnaces and switch to a greener form of production - which would have an impact on the steel fabrication and supply chain at Lackenby and Skinningrove.
Tees Valley Mayor Ben Houchen said the Government has his full support, adding that they 'sometimes have no choice but to step in'.
Redcar MP Anna Turley added that Labour is 'determined to stand by our steel communities and do everything we can to support the jobs, skills, and industries that built this country.'
Meanwhile, a Number 10 spokesperson said there is a "bright future for steel in the UK" and that "all options remain on the table".
Shock and fear has been racing across Teesside in recent weeks after the news that the owners were holding talks about closing huge parts of the Scunthorpe operation.
While the firm said the consultation did not concern the Teesside Beam Mill, the news meant hundreds of workers there and at the Skinningrove plant would be concerned about the future.
British Steel previously said that, despite investment of more than £1 billion, there had been losses of more than £700,000 every day and 'the blast furnaces and steelmaking operations are no longer financially sustainable'.
Earlier this year, plans for the Electric Arc Furnace (EAF) on Teesside were scrapped as British Steel moved to make Scunthorpe the sole location for the EAF.
This was despite a 'serious deal' being on the table with planning permission secured, the land prepared, and the workforce 'standing by'.
Regarding the news of Parliament being recalled, Ms Turley said: 'The decision to recall Parliament to discuss British Steel shows just how serious the situation is — and just how different things are under this government.
Anna Turley (Image: NQ)
'In 2015, when Redcar faced the loss of its steelworks, the Tory government turned its back. This time, we have a government that's willing to act.
'Steel is absolutely vital to our economy, our national security, and to communities like ours on Teesside.
'The uncertainty facing Scunthorpe has national implications, including for the steel fabrication and supply chain here in our region.
'We know what it means when the steel industry is left to decline. Labour is determined to stand by our steel communities and do everything we can to support the jobs, skills, and industries that built this country.'
Mr Houchen said: 'It looks like the government is set to nationalise British Steel over the coming days. Is it ideal?
Ben Houchen (Image: TVCA)
'No - but when governments of all parties have failed for decades, you sometimes have no choice but to step in.
'It's exactly the same as what we did with Teesside Airport. We didn't want to nationalise it - but we had to. If we hadn't, it would be gone.
'Sometimes you have to step up and do what's needed, even when it's not easy, cheap or fashionable.
'British Steel is no different. It will be expensive. Managing a poor, ageing site at Scunthorpe won't be simple.
'But protecting thousands of skilled jobs and defending our national security is priceless. I will NOT criticise the Government for doing what needs to be done. They have my full support.
'We now need to see a serious plan for the years ahead. Nationalisation must not be a slow drift into decline - it must be the starting point for rebuilding Britain's industrial base.
'Crucially: Ministers will soon control where investment happens. They used to say, 'we can't tell a private company where to invest.' Now they can. So let's get on with it and build in Teesside.
'Teesside is ready to build an Electric Arc Furnace (EAF). The planning permissions are secured, the grid is connected, the land is prepared, and the workforce is standing by. We have everything needed for a new EAF - and the drive to make it a success.
'I'll keep fighting for Teesside every step of the way - and I urge unions, MPs and local leaders to do the same. This is a once-in-a-generation opportunity to secure Britain's future. We can't waste it.'
The Commons Saturday sitting will begin at 11am, when MPs will debate 'legislative proposals to ensure the continued operation of British Steel blast furnaces is safeguarded', according to the office of Commons Speaker Sir Lindsay Hoyle.
The House of Lords will sit from midday.
Ministers say all options are on the table (Image: PA)
In an indication of how seriously the Government is taking the issue, this is the first time Parliament has been recalled to sit on a Saturday since 1982, when MPs returned after the Falklands War began.
Other significant recalls during recent years included a midweek sitting during the summer recess in August 2021 to debate the evacuation from Afghanistan.
In a letter to MPs shared with the PA news agency, Sir Lindsay said he was satisfied the 'public interest' requires the recall.
Unions welcomed the move to recall Parliament.
Charlotte Brumpton-Childs, GMB union national officer, said: 'GMB has long called for nationalisation as the only way to save the UK steel industry.
'Tomorrow looks like the first step in that process.
'The Business Secretary must be given huge praise for acting decisively to safeguard this vital industry and the thousands of jobs that rely on it.'
Roy Rickhuss, general secretary of steelworkers' union Community, said: 'It is in the national interest that a solution is found to secure a future for British Steel as a vital strategic business.
'We can't allow Britain to become the only G7 country without primary steelmaking capacity.'
A Number 10 spokesperson said: 'The Prime Minister has been clear, his government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers.
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'Tomorrow Parliament will be recalled to debate the Steel Industry (Special Measures) Bill. The Bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site.
'It enables the UK Government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports.
'We have been negotiating with British Steel's owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the UK. All options remain on the table.'