After several hours of debate, both houses of Parliament—the House of Commons and the House of Lords—have approved the Special Measures Bill, which is set to become law once it receives royal assent from King Charles III.
Once enacted, the government will take control of the British Steel plant in Scunthorpe, located in the northeast of England. This decision follows unsuccessful negotiations with its Chinese owner, Jingye, amid daily losses of £700,000 (approximately €840,000).
Jingye argued that the blast furnaces at Scunthorpe were unsustainable, citing market difficulties as the reason for its financial woes.
The government is poised to take over British Steel, with officials ready to head to Scunthorpe and inspect the facility as soon as the legislation is endorsed by the King.
This marks the first emergency Easter parliamentary session since the Falklands War with Argentina in 1982, underscoring the urgency with which the government is attempting to salvage British Steel.
Economy Minister Jonathan Reynolds defended the emergency session, stating that these are “exceptional circumstances” necessitating “exceptional measures in exceptional times.”
Reynolds further noted that the government engaged in good-faith negotiations with Jingye and “worked tirelessly to find a solution, offering generous support to British Steel that included reasonable and sensible conditions to protect the workforce.”
However, he added, the Chinese firm demanded significantly more money than was offered, which was deemed an “excessive” amount.
In recent days, Reynolds indicated that it became apparent Jingye intended to refuse sufficient raw material procurement to keep the blast furnaces operational and planned to cancel and refuse payment on existing orders.
The UK government warned that if Scunthorpe’s blast furnaces were to be shut down unexpectedly, they could never be restarted as the solidified steel inside would render them inoperable.
The Labour government now faces a decision: whether to seek a private buyer for the plant, use a combination of public and private funds, or opt for nationalization.
Conservative business spokesperson Andrew Griffith criticized the government’s approach, labeling it a “failed nationalization plan.”
If British Steel were to close, the UK would become the only G7 nation unable to produce its own steel—a vital resource for infrastructure projects and the railway sector.
Related:
