Members of Parliament in the UK have sanctioned measures aimed at preserving British Steel’s blast furnaces located in Scunthorpe following an unprecedented session of the House of Commons.
Emergency legislation granting the UK government the authority to direct British Steel to maintain operations at the facility was passed unanimously in the House of Commons.
This legislation will now proceed to a debate in the House of Lords as the UK government strives to finalize the powers within a single day.
In an unusual move, ministers recalled parliament from its Easter break after negotiations with the Chinese owners of British Steel, Jingye, appeared to collapse.
The plant’s future had been uncertain after the UK government and British Steel failed to reach an agreement on funding needed for a transition to eco-friendlier steel production.
UK Business Secretary Jonathan Reynolds accused the company of not negotiating “in good faith” when it opted to stop purchasing enough raw materials required to keep the Scunthorpe blast furnaces operational.
He informed MPs: “We could not, will not, and never shall remain passive while heat escapes from the UK’s remaining blast furnaces without any strategy, due process, or regard for the repercussions.
“This is why I required my colleagues to meet here today.”
However, the Conservative Party asserted that the government should have taken action sooner, with shadow leader of the House Alex Burghart criticizing ministers for making “a total pig’s breakfast of this entire arrangement”.
Shadow business secretary Andrew Griffith stated that the government was looking for a “blank cheque,” while Tory leader Kemi Badenoch alleged that Labour had “botched” a deal she had previously negotiated with British Steel while serving as business secretary.
Yet, she was unable to provide specifics about the agreement, mentioning that negotiations were still incomplete when last year’s election was announced, but added that it “would have succeeded better” compared to Mr. Reynolds’s current plan.
During the debate, Mr. Reynolds mentioned that Labour had been involved in talks with Jingye since it took office last July, offering “substantial” support.
Recently, the government had proposed to buy the necessary raw materials for the blast furnaces, regarded as the last primary steel-making facilities in the UK, but this offer was met with a counter-request from Jingye for “an excessive amount” of support.
Approximately 3,500 individuals are employed at the Scunthorpe steel facility.
He continued: “In recent days, it became evident that Jingye intended to cease purchasing enough raw materials to keep the blast furnaces operational; indeed, their aim was to cancel and decline payment for existing orders.
“Consequently, the company would have irreversibly and unilaterally shut down primary steel production at British Steel.”
The Steel Industry (Special Measures) Bill empowers the government to order steel companies in England to keep their operations open, imposing criminal penalties on executives who fail to comply.
Ministers indicated that these measures were essential to ensure the Scunthorpe blast furnaces remain operational and to safeguard the UK’s primary steelmaking capacity along with the 3,500 associated jobs.
Mr. Reynolds asserted that the emergency legislation was a “proportionate and necessary step,” emphasizing his intent for it to be a “temporary measure” that would not extend “a minute longer than needed.”
This emergency legislation stops short of a complete nationalization of British Steel, with ministers expressing hope for securing private investments to save the plant.
However, there is currently no private entity willing to invest in British Steel, and the Business Secretary admitted in the Commons that public ownership remains the “likely option.”
During the discussions, Reform UK’s deputy leader Richard Tice called on the government to “show your cojones” and go further by fully nationalizing British Steel “this weekend.”
Several Conservative MPs also expressed support for nationalization, while Liberal Democrat Treasury spokesperson Daisy Cooper stated that recalling parliament was “absolutely the right thing to do.”
Meanwhile, the government has faced criticism for prioritizing the Scunthorpe plant while neglecting similar actions for the Tata Steel works in Port Talbot when they faced closure threats.
Liberal Democrat Wales spokesman David Chadwick noted that workers in South Wales “will be asking themselves how this unjust situation was ever permitted.”
Earlier, industry minister Sarah Jones explained that the differing approach was a result of Tata’s willingness to invest in Port Talbot and the altered global circumstances necessitating the protection of the UK’s primary steel-making capacity.
