British Steel taken into public ownership to protect ‘vital’ UK supply
British Steel has been taken into public ownership in what the government says is an attempt to “protect UK steel production”.
The future of the steelworks in Scunthorpe, which employs around 2,700 people and supports many other industries in North Lincolnshire, has been plagued with uncertainty in recent years.
Prime Minister Sir Keir Starmer said: “Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and secures a vital national talent.” he said.
The UK government took control of British Steel operations in Scunthorpe last year, but the company has remained under the ownership of China’s Jingye Group since then.
Jingye said he had previously started the process of seeking compensation for expropriation, saying the business was losing £700,000 a day. But the UK government has said it could limit or deny compensation.
The BBC has not received a response from Jingye to Thursday’s announcement.
Starmer added: “British Steel is part of the fabric of our nation and the cornerstone of Britain’s industrial strength.
“This government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on thrive long into the future.”
The government had previously wanted private investors to take control of the steelmaker and initially failed to achieve full nationalization.
Business Secretary Peter Kyle said: “British Steel now belongs to the British people and our focus is on the future: stabilizing the business, supporting the communities that rely on it and building a sustainable, competitive and decarbonised steel sector in the years to come.” he said.
Parliament on Wednesday passed legislation allowing the government to bring the steel industry into public ownership under conditions that meet the public interest test.
A spokesman for the Department for Business and Trade confirmed on Wednesday that the government was “committed” to using new powers in the British Steel case.
“The Steel Act gives us the power to nationalize steel companies where it is necessary in the public interest to protect the essential industry that supports our critical national infrastructure, economy and defence,” the ministry said in a statement. he said.
In March the National Audit Office published a report saying the Scunthorpe steelworks was costing the government around £1.3 million a day.
