Political reporter
Employment correspondent
Reuters
This Saturday, Parliament is set to be reconvened to enact emergency legislation aimed at preventing the closure of British Steel’s Scunthorpe plant.
Sir Keir Starmer stated during a press briefing that the proposed law will empower ministers to “take control” of the Lincolnshire facility, which employs 2,700 workers.
This initiative might lead to the full nationalization of the company later, with the Prime Minister mentioning that “all options” are being considered.
Following its Chinese parent company’s announcement that the plant’s production is “no longer financially sustainable,” discussions have been ongoing this week to keep operations alive.
Both Houses of Parliament are being called back, with plans to finalize the legislation within a single day.
The Prime Minister expressed that the company’s future is precarious and emphasized the critical nature of steelmaking for national interests.
Jingye, which acquired British Steel in 2020, claims it has injected over £1.2 billion into the enterprise while grappling with daily losses around £700,000.
The Business Department stated that under the new law, the government would be able to mandate the acquisition of raw materials essential to sustain the two active blast furnaces, as supplies will deplete shortly.
The potential job cuts at Scunthorpe were attributed to “challenging” market conditions and issues related to tariffs and costs tied to greener manufacturing processes.
The government extended a £500 million aid proposal to partially facilitate the transition to more energy-efficient electric arc furnaces, which was turned down by the company.
