Latest news with #SteelIndustry(SpecialMeasures)Act
Epoch Times
23-04-2025
- Business
- Epoch Times
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. Related Stories 4/4/2025 4/15/2025 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.
The Independent
17-04-2025
- Business
- The Independent
Government risked ‘throwing good money after bad' in steel talks
The Government risked 'throwing good money after bad' in its negotiations over the Scunthorpe steelworks, the Chancellor has said. Taking questions about whether ministers would bring the North Lincolnshire steelworks into public ownership, Rachel Reeves pledged that the Government would 'play a big role' in its future. MPs gathered in Westminster last weekend, when Parliament was recalled from recess on a Saturday for the first time since the Falklands War in 1982. They passed the Steel Industry (Special Measures) Act, which gives the Government powers to tell steel companies in England that they must keep facilities open, with criminal penalties for executives if they fail to comply. The Government had previously been in talks with British Steel's owner Jingye, amid efforts to keep the Scunthorpe blast furnaces open after the Chinese company unveiled plans to close them. Earlier on Thursday, Conservative Party leader Kemi Badenoch said the Labour Government might be 'too close' to Beijing. Asked how long the Government would 'wait before nationalising British Steel', the Chancellor told broadcasters: 'It was really important on Saturday in that emergency sitting of Parliament that we took control of the company to ensure that we could bring in the raw materials to keep the blast furnaces running. 'And I've had the opportunity to talk to the British management team, workers and the three different trade unions represented here to talk about the future. 'We now have that control. We're bringing in those raw materials, and I am certain – and the workers and the management team are certain – that there is a bright future for the steelworks here in Scunthorpe, and the whole community.' Speaking in Scunthorpe, Ms Reeves added: 'At the moment we have control of the company. 'There is no time limit on that, so we are able now to act as the management team and work with the management team here. 'Nothing is off the table. 'We did previously try to negotiate with the owner. That was not successful; it would have been throwing good money after bad. 'It was the right thing to do to take control of this company, and nothing now is off the table as we look for a new future, not with the previous owners, but a new future with new investment here in Scunthorpe. 'And of course, Government are going to play a big role in that.' Alun Davies, the Community trade union's national secretary for steel, praised the Government, which he said 'understands, appreciates and stands with our steel industry'. He said: 'Our members at British Steel were grateful for the opportunity to meet the Chancellor today and expressed their thanks for the Government's recent actions to secure the future of the Scunthorpe steelworks. 'We know that without the Chancellor's support, safeguarding the site would not have been possible. 'In her discussions with our reps and officials, the Chancellor reiterated the Government's support for the workforce at British Steel and the sector more widely, emphasising that steel is essential to her vision for economic growth and industrial renewal across the UK.' On the local election campaign trail on the outskirts of Ely, Cambridgeshire, Mrs Badenoch called for a 'proper plan and a proper strategy' for dealing with China. She told the PA news agency: 'I worry that this current Government is too close to it. 'I think (trade minister) Douglas Alexander has been out there trying to get, you know, investment on green tech at a time when we're trying to get China out of steel, for example, and out of critical national infrastructure.' Asked what a 'proper plan' is, Mrs Badenoch replied it would be 'one where citizens being picked up in this country, being kept in all sorts of random prisons that the Chinese embassy has set up, we need to really crack down on that'. She added: 'We need to look again at the investments that Chinese companies are making, how many of them are actually really at the behest of the Chinese government, how much are they getting involved in national infrastructure across the board.' In a statement posted to X, formerly Twitter, British Steel thanked 'the UK Government and politicians across the political divide for their support'. It read: 'Wednesday saw vital raw materials unloaded at Immingham, before bringing them to British Steel's blast furnaces as Scunthorpe. 'Given just a week ago the future of the steelworks stood in the balance, it has been remarkable to see the country rally around the last remaining blast furnaces. 'Following a challenging time for the business, we have hope for the future of steelmaking in Scunthorpe given the strategic importance of rail and construction steel products which are vital to support the UK's infrastructure projects which contribute to our growing economy. 'For over half a century, British Steel has been monumental in supporting our country's industry. 'There is a bright future for steel in Scunthorpe.'
Yahoo
17-04-2025
- Business
- Yahoo
Government risked ‘throwing good money after bad' in steel talks
The Government risked 'throwing good money after bad' in its negotiations over the Scunthorpe steelworks, the Chancellor has said. Taking questions about whether ministers would bring the North Lincolnshire steelworks into public ownership, Rachel Reeves pledged that the Government would 'play a big role' in its future. MPs gathered in Westminster last weekend, when Parliament was recalled from recess on a Saturday for the first time since the Falklands War in 1982. They passed the Steel Industry (Special Measures) Act, which gives the Government powers to tell steel companies in England that they must keep facilities open, with criminal penalties for executives if they fail to comply. The Government had previously been in talks with British Steel's owner Jingye, amid efforts to keep the Scunthorpe blast furnaces open after the Chinese company unveiled plans to close them. Earlier on Thursday, Conservative Party leader Kemi Badenoch said the Labour Government might be 'too close' to Beijing. Asked how long the Government would 'wait before nationalising British Steel', the Chancellor told broadcasters: 'It was really important on Saturday in that emergency sitting of Parliament that we took control of the company to ensure that we could bring in the raw materials to keep the blast furnaces running. 'And I've had the opportunity to talk to the British management team, workers and the three different trade unions represented here to talk about the future. 'We now have that control. We're bringing in those raw materials, and I am certain – and the workers and the management team are certain – that there is a bright future for the steelworks here in Scunthorpe, and the whole community.' Speaking in Scunthorpe, Ms Reeves added: 'At the moment we have control of the company. 'There is no time limit on that, so we are able now to act as the management team and work with the management team here. 'Nothing is off the table. 'We did previously try to negotiate with the owner. That was not successful; it would have been throwing good money after bad. 'It was the right thing to do to take control of this company, and nothing now is off the table as we look for a new future, not with the previous owners, but a new future with new investment here in Scunthorpe. 'And of course, Government are going to play a big role in that.' Alun Davies, the Community trade union's national secretary for steel, praised the Government, which he said 'understands, appreciates and stands with our steel industry'. He said: 'Our members at British Steel were grateful for the opportunity to meet the Chancellor today and expressed their thanks for the Government's recent actions to secure the future of the Scunthorpe steelworks. 'We know that without the Chancellor's support, safeguarding the site would not have been possible. 'In her discussions with our reps and officials, the Chancellor reiterated the Government's support for the workforce at British Steel and the sector more widely, emphasising that steel is essential to her vision for economic growth and industrial renewal across the UK.' On the local election campaign trail on the outskirts of Ely, Cambridgeshire, Mrs Badenoch called for a 'proper plan and a proper strategy' for dealing with China. She told the PA news agency: 'I worry that this current Government is too close to it. 'I think (trade minister) Douglas Alexander has been out there trying to get, you know, investment on green tech at a time when we're trying to get China out of steel, for example, and out of critical national infrastructure.' Asked what a 'proper plan' is, Mrs Badenoch replied it would be 'one where citizens being picked up in this country, being kept in all sorts of random prisons that the Chinese embassy has set up, we need to really crack down on that'. She added: 'We need to look again at the investments that Chinese companies are making, how many of them are actually really at the behest of the Chinese government, how much are they getting involved in national infrastructure across the board.' In a statement posted to X, formerly Twitter, British Steel thanked 'the UK Government and politicians across the political divide for their support'. #BritainNeedsBritishSteel @NicDakin55 — British Steel (@BritishSteelUK) April 17, 2025 It read: 'Wednesday saw vital raw materials unloaded at Immingham, before bringing them to British Steel's blast furnaces as Scunthorpe. 'Given just a week ago the future of the steelworks stood in the balance, it has been remarkable to see the country rally around the last remaining blast furnaces. 'Following a challenging time for the business, we have hope for the future of steelmaking in Scunthorpe given the strategic importance of rail and construction steel products which are vital to support the UK's infrastructure projects which contribute to our growing economy. 'For over half a century, British Steel has been monumental in supporting our country's industry. 'There is a bright future for steel in Scunthorpe.'
BBC News
13-04-2025
- Business
- BBC News
Scunthorpe MP says he is 'very confident' in steel's future
Scunthorpe MP Sir Nic Dakin said he had a "very high level" of confidence that the necessary steps would be taken to secure the future of the British Steel plant in the to the BBC on Sunday, he said there was a "really difficult job to do now" but the workforce and the management "will be up for that". Emergency legislation was rushed through Parliament on Saturday to prevent owners Jingye shutting down the two blast Business Secretary Jonathan Reynolds declined to guarantee that the government could secure enough raw materials to keep the furnaces going before existing supplies run out. The Steel Industry (Special Measures) Act allows Reynolds to direct the board and the staff of British Nic said he had been working hard on securing the plant "for a long while"."I think everybody wants a sustainable business in Scunthorpe," he said."We're not out of the woods yet. There is still work to be done, but I've got a very high level of confidence in the management and workforce there, with the support of the government, to take the steps necessary to secure the future."Sir Nic was not in the House of Commons for Saturday's debate but he said he was "following the proceedings all day". As a government minister, he would have been unable to speak in the Commons as a from around the region and across the political spectrum spoke during the UK's Richard Tice said he wanted British Steel to be nationalised, Conservative MP Victoria Atkins said she was worried about the cost to the taxpayer, and Labour's Melanie Onn said the bill was just a "sticking plaster".Earlier on Sunday, Reform UK leader Nigel Farage accused the Chinese Communist Party of deliberately sabotaging British if he agreed with those comments, Sir Nic said: "It's hard to say those sort of things. It's not the right sort of thing to say."Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Yahoo
12-04-2025
- Business
- Yahoo
Redcar steelworks 'could have been saved' if legislation was passed earlier, say MPs
Redcar's steelworks "could have been saved" if new "bittersweet" legislation passed today had been implemented a decade earlier, politicians across the North East have stressed. Crucial legislation to protect British steelmaking that Prime Minister Keir Starmer "hangs in the balance" has been passed by MPs in an unprecedented Saturday sitting in the Commons. MPs from across the country were summoned to Westminster today (April 12) after being unexpectedly recalled from recess to debate emergency legislation to protect the future of British Steel's Scunthorpe plant in North Lincolnshire. MPs debate in the commons. (Image: PA) The debate was called after negotiations with British Steel's Chinese owners, Jingye, appeared to break down. Owner Jingye's plans to close the blast furnaces and switch to a greener form of production would also have an impact on the steel fabrication and supply chain in Teesside at Lackenby and Skinningrove. But, the Steel Industry (Special Measures) Bill, which was passed today by MPs, gives the Government the power to instruct steel companies in England to keep facilities open, with criminal penalties for executives if they fail to comply. The bill has now passed through the House of Lords, and Royal assent was granted to the now Steel Industry (Special Measures) Act. Ministers said these measures were necessary to keep the Scunthorpe blast furnaces open and protect both the UK's primary steelmaking capacity and the 3,500 jobs involved. However, whilst this is welcome news for the region's MPs, it is "bittersweet". Some have reiterated that if similar steps had come into force ten years ago, Redcar's Basic Oxygen Steelmaking (BOS) plant that closed in 2015 and was demolished in 2023 may not have been lost. Redcar MP Anna Turley. (Image: HOUSE OF COMMONS) Before heading down to Westminster today, Redcar MP Anna Turley said: "The action taken by the Labour government today is vital to securing the future of British Steels' blast furnaces. "It is quite a bittersweet day of course because it's hard not to think about how different things would have been if David Cameron implemented these powers ten years ago and intervened to save the Redcar blast furnaces." Referring back to 2015, she told The Northern Echo: "We declared wanted the government to intervene and take control of the assets - the blast furnace and the coke ovens. "The government refused to intervene and let SSI go to the wall. Emergency powers like this world have saved our blast furnace, steel making on Teesside and crucially the 2,300 jobs that were lost." Middlesbrough MP Andy McDonald added: "We do remember 2015 very, very well and one of the issues that we are talking about at Scunthorpe is the quality of the coke that is being provided. Middlesbrough MP Andy McDonald. "I can't help thinking that in 2015 we had the best coke ovens in the country. But that was then, this is now. We've got to make sure that we preserve our core industries." Recommended: Calls to nationalise British Steel could affect Teesside MPs face choice on British Steel as ministers aim to 'take back control' Darlington MP Lola McEvoy added: "Where the Tories passed the buck year after year, I'm proud we've got a Labour Government that has stepped up to protect thousands of jobs and save steelmaking for our nation. "Steel is a critical industry for the UK and one that really should be thriving. Instead it has been neglected for years, passed from pillar to post. As my neighbour Anna Turley said: if David Cameron had stepped up like Keir Starmer has today, we could have saved Redcar too. "Today I am feeling hopeful with this bold action that we can restore that pride once again."
