STORY
In a dramatic and rare Saturday sitting of Parliament, the UK government passed emergency legislation to take control of British Steel’s Scunthorpe plant, the country’s last remaining producer of virgin steel, in a move that has drawn praise from trade unions and northern communities—but sharp political criticism from the opposition. The intervention, led by Business Secretary Jonathan Reynolds, grants ministers temporary powers to direct operations, guarantee pay for thousands of workers, and ensure the procurement of raw materials to maintain production. Chinese owner Jingye Group had planned to shut down the plant’s blast furnaces due to mounting financial losses—estimated at £700,000 a day—and spiralling environmental costs.
While Reynolds was clear that ownership remains with Jingye, he emphasised the government now has the authority “to act decisively in the national interest” to protect strategic industrial capacity, including jobs for around 2,700 workers. “The decision to step in wasn’t taken lightly,” Reynolds told MPs. “But we simply cannot allow the UK to lose its sovereign capacity to make steel from scratch. This is about economic security, national infrastructure, and supporting communities that built this country.”
Cross-Party Reactions
The emergency move, however, has sparked fierce debate across the political spectrum. Conservative Party spokespeople accused Labour of indulging in “ideological throwbacks” and warned that state interference risks undermining investor confidence.
“This government talks a lot about modernising the economy, but this is pure 1970s nationalisation in all but name,” said Shadow Business Secretary Kemi Badenoch. “No one disputes the importance of steel, but Labour’s approach risks turning taxpayers into long-term owners of loss-making assets with no clear exit plan.” Former Chancellor Jeremy Hunt echoed the concern, adding: “Where is the plan for reform and investment? Taking over British Steel might buy some time, but it won’t solve the underlying problems without private sector innovation and accountability.”
The Liberal Democrats offered more measured support but raised questions about the government’s long-term strategy.
“This is a vital short-term intervention, and the government was right to act to save jobs and production,” said Liberal Democrat business spokesperson Sarah Olney. “But what we need now is transparency, a proper industrial strategy, and safeguards to prevent this from becoming a blank cheque.” She also called for “a full review of how the government handles strategic industries and foreign ownership,” saying the Scunthorpe crisis highlights vulnerabilities in how the UK manages critical infrastructure.
Strategic Stakes
British Steel’s Scunthorpe site is not only a major employer in Lincolnshire but also produces 95% of the UK’s rail track and plays a key role in national defence and infrastructure supply chains. The intervention has been widely welcomed by trade unions and local leaders. Unite the Union hailed the move as “a lifeline for steelworkers” and demanded longer-term investment in low-carbon steelmaking to ensure a sustainable future.
The emergency legislation—passed with a comfortable majority—also includes provisions for future state ownership, or a move toward a public-private partnership, if negotiations with Jingye falter. A transition to electric arc furnace (EAF) technology remains part of the long-term vision, but union leaders warn this must not come at the cost of mass redundancies.
Next Steps
The Government has promised an update within 30 days, with a new Industrial Transition Plan to be published before the summer. Consultations with local stakeholders and unions are expected to begin immediately. In the meantime, the blast furnaces will continue operating under government direction—marking a historic moment in UK industrial policy and setting the stage for further clashes over the role of the state in securing Britain’s economic future.
