The UK government has taken emergency control of British Steel to prevent the closure of its Scunthorpe plant, using fast-tracked legislation that passed through both Houses of Parliament in a rare Saturday sitting.
Business Secretary Jonathan Reynolds told MPs the government was left with no choice after Chinese owners Jingye Group signaled plans to shut down the site’s two blast furnaces — a move that would end primary steel production in the UK. Reynolds said nationalisation is now the most likely outcome, though ownership remains temporarily with Jingye.
The legislation, which received Royal Assent within hours, grants the government sweeping powers to manage the site, including the authority to enter and secure assets if necessary. Government officials are already at the plant to oversee operations.
Speaking after the bill’s passage, Prime Minister Sir Keir Starmer said, “Today, my government has stepped in to save British Steel. We’re protecting thousands of jobs and keeping steel at the heart of Britain’s future.”
Earlier in the day, Starmer met with steelworkers near the plant and praised their resilience: “You are the people who have kept this going.”
Meanwhile, hundreds of steelworkers and supporters marched to Glanford Park stadium, chanting “we want our steel back.” One worker, Rob Barroclough, told the BBC his family’s livelihood is tied to the plant: “We’re hoping for the best, but planning for the worst.”
Tensions at the site were evident as police were called in after a suspected breach of the peace. Reports indicate that Jingye executives were denied access by the plant’s security system, although no arrests were made.
Reynolds criticised Jingye’s refusal to accept a substantial government offer to help keep furnaces running, accusing the company of attempting to cancel raw material orders and effectively shutting down operations unilaterally. “Despite our commitment to negotiation, their demands were excessive,” he said.
While the opposition did not oppose the bill, Conservative MPs accused the government of acting too late. Liberal Democrats supported the intervention but urged careful use of the new powers. Reform UK called for immediate full nationalisation.
Some MPs raised broader concerns. Green MP Ellie Chowns said the steel industry was vital to a “green industrial transformation,” and former Labour leader Jeremy Corbyn called for full nationalisation of all UK steelmaking. In contrast, MPs from Wales and Scotland questioned why similar support hadn’t been extended to Port Talbot or the Grangemouth oil refinery.
Reynolds defended the narrow focus of the legislation, calling the Scunthorpe case “unique,” and posed a broader question: “Do we want to continue to possess a steel industry in the UK, or be dependent on overseas imports?”
The government remains open to private investment in British Steel but acknowledges that no viable buyers have come forward. If nationalised, shareholders would be compensated at fair market value — which Reynolds said currently stands at “effectively zero.”
Despite the uncertain financial outlook, Reynolds said the move is essential for the country’s industrial strength, energy security, and infrastructure future.
