The UK Parliament has taken decisive action by approving plans aimed at safeguarding the blast furnaces of British Steel in Scunthorpe during a remarkable session of the House of Commons.
Emergency legislation, which empowers the UK government to mandate British Steel to maintain operations at the plant, received unanimous backing in the Commons. This pivotal move will now be presented for discussion in the House of Lords, as the government strives to codify these powers within a single day.
In an unusual turn of events, ministers opted to recall Parliament from its Easter recess after negotiations with Jingye, British Steel’s Chinese owners, appeared to falter. This intervention underscores the urgency of the situation, as the future of the facility hung in the balance following the failure to reach an agreement on funding necessary for transitioning to greener steel production.
UK Business Secretary Jonathan Reynolds expressed his discontent, accusing the company of not negotiating “in good faith” when it ceased purchasing an adequate supply of raw materials essential for the operation of the Scunthorpe blast furnaces. “We could not, will not, and never will stand idly by while heat seeps from the UK’s remaining blast furnaces without planning, due process, or respect for the consequences,” he emphasized, insisting on the necessity of this session.
Criticism of the government’s response came from Conservative members, with Shadow Leader of the House Alex Burghart claiming that ministers had made “a total pig’s breakfast of this whole arrangement.” Additionally, Shadow Business Secretary Andrew Griffith remarked that the government was effectively seeking a “blank cheque,” while Tory leader Kemi Badenoch contended that the Labour Party had “botched” a previous deal she attempted to negotiate with British Steel when she served as Business Secretary.
In his opening remarks, Mr. Reynolds noted that the Labour government had engaged with Jingye since taking office in July, offering “substantial” support. He outlined the government’s most recent proposal to procure the necessary raw materials for the blast furnaces—the last of their kind in the UK—but highlighted that Jingye’s counter-offer demanded “an excessive amount” of support.
Approximately 3,500 employees rely on the Scunthorpe steel plant for their livelihoods. Mr. Reynolds pointed out, “Over the last few days, it became clear that Jingye intended to stop purchasing sufficient raw material to keep the blast furnaces operational, with their aim to cancel and refuse payment for existing orders.” He stated, “The company would therefore have irrevocably and unilaterally closed down primary steel making at British Steel.”
The proposed Steel Industry (Special Measures) Bill would grant the government the authority to instruct steel companies in England to maintain operations, introducing criminal penalties for executives who fail to comply. Ministers asserted that these measures are essential to preserve the Scunthorpe blast furnaces and protect the UK’s primary steelmaking capacity along with the jobs of those 3,500 workers.
“This emergency legislation is a proportionate and necessary step,” Mr. Reynolds remarked, affirming his intention for this to be a “temporary position” and that these powers would last “not a minute longer than necessary.” The legislation does not extend to full nationalization of British Steel, and the government remains optimistic about securing private investment to rescue the plant, although no investors are currently willing to commit.
During the debate, Reform UK’s Deputy Leader Richard Tice urged the government to “show your cojones” and consider fully nationalizing British Steel “this weekend.” Some Conservative MPs echoed this sentiment, while Liberal Democrat Treasury spokeswoman Daisy Cooper commended the move to recall Parliament as “absolutely the right thing to do.”
Nevertheless, the government has faced scrutiny for prioritizing the Scunthorpe plant while neglecting the Tata Steel works in Port Talbot, which were also under threat of closure. Liberal Democrat Wales spokesman David Chadwick remarked that workers in South Wales “will be asking themselves how this unjust situation was ever allowed to occur.”
In response, industry minister Sarah Jones explained that the differing approach was a result of Tata’s readiness to invest in Port Talbot and the evolving global landscape, which necessitated the protection of the UK’s primary steel-making capacity.
Additional reporting: Reuters
Edited By Ali Musa
Axadle Times International – Monitoring
