Sat, 12 Apr 2025

Sat, 12 Apr 2025 Chris Mason: British Steel law rushed through Parliament but it is just a stop gap

For all of Saturday's drama, the government's intervention so far is just a stop gap, writes our political editor.
Emergency legislation was rushed through Parliament on Saturday, allowing the UK government to take control of British Steel's operations. The law change comes after concerns that Jingye, the Chinese-owned parent company, was seeking to sell off raw materials en route to Scunthorpe. The new management structure has been put in place with EY assisting, and an optimism among ministers is growing that they can secure necessary raw materials to keep blast furnaces operational. However, there are concerns about the complexities of international supply chains and potential budgetary implications. A nationalisation of British Steel is increasingly likely, which could happen without further legislation if Jingye does not object. This move has sparked questions from SNP Westminster leader Stephen Flynn, who drew parallels with the closure of Scottish oil refineries. Residents in Scunthorpe are showing support for their steelmaking industry, while a source close to the situation stated that issues between government officials and British Steel remain unresolved. The company warned earlier this year that materials needed to keep blast furnaces operational were running out, leading to concerns about unrest at the site where 60% of the workforce is British. The Prime Minister described his role in securing the future of British Steel as part of a "government of industry" and emailed Labour Party supporters on Saturday night with the subject line "British Steel. British jobs".
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