Sat, 12 Apr 2025

Sat, 12 Apr 2025 UK takes control of British Steel under emergency powers

Business Secretary Jonathan Reynolds says nationalisation is "likely" next step as Parliament rushes law through.

* The UK government has taken control of British Steel after passing emergency legislation through Parliament.
* Business Secretary Jonathan Reynolds said the next step would likely be nationalizing the Scunthorpe plant, which employs 2,700 people.
* The government intervened to prevent owners Jingye from shutting down blast furnaces at the plant, which would have ended primary steel production in the UK.
* Prime Minister Sir Keir Starmer stated that the government is acting to protect jobs and secure the future of the industry.
* Steelworkers and their families marched in Scunthorpe to show support for the plant's survival.
* Relations between workers and Jingye officials have become tense, with police called to the site over a suspected breach of peace.
* The new law gives Reynolds sweeping powers to control management and workers at the plant, including entering it by force if necessary.
* The government hopes to secure private investment to save the loss-making plant, but ministers concede there are currently no willing buyers.
* Reynolds acknowledged that public ownership is likely, with the market value of the company effectively zero.
* Keeping a loss-making plant open could come at a high cost to taxpayers, but Reynolds believes it's in the national interest to retain the ability to make steel from scratch.
* The government plans to pay fair market rate for shares if the plant is nationalized.
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