UK PM Starmer says British Steel to be nationalised
British Steel is set to return to public ownership after Prime Minister Keir Starmer announced new laws that he said would give the UK government “options” to protect the industry and workers.
New powers could be used to nationalize British Steel, 38 years after the firm was first sold.
This comes a year after the government used emergency powers to seize control of the firm and resume production at the site in Scunthorpe after its owner, Chinese firm Jingye, offered to close two blast furnaces.
The company, which has since been in talks with Jingye, said it could not agree on a commercial sale and did not think a deal could be reached that would provide sufficient value to taxpayers.
The government said it believed introducing legislation to provide a path to public ownership was the right next step and would allow the steelmaker to make decisions about its future.
Legislation to be put forward this week will be subject to a public interest test that takes into account factors such as national security, maintaining critical national infrastructure and supporting the economy.
“Robust domestic steel production is vital to our economy and this legislation will allow us to ensure stability for British Steel’s employees, suppliers and customers and avoid damaging disruptions to key supply chains as we consider options for the future of the mill,” Starmer said.
“The government recognizes that securing the long-term future of the UK steel sector depends on both public and private investment in modernisation.”
Steel union GMB welcomed the move to nationalize British Steel, which it said would “protect it from foreign owners”.
The UK government’s intervention last year put a pause on Jingye’s proposals and ended redundancy consultations; This could lead to the loss of between 2000 and 2700 jobs.
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