British Steel has been brought into public ownership after the government said the move was needed to protect the future of steel production in the UK. The Scunthorpe plant, which employs about 2,700 people, had already been placed under government operational control in April last year after its Chinese owner, Jingye Group, was reported to be preparing to close the site’s two blast furnaces.
Prime Minister Keir Starmer said the decision would secure steelmaking in the UK, protect skilled jobs and preserve a strategic national capability. Parliament had passed legislation on Wednesday allowing ministers to nationalise the industry if a public interest test was met. The government said the takeover was intended to safeguard thousands of jobs, support businesses that depend on UK-made steel and help protect supply chains, major infrastructure projects and national security.
The ownership change also raises questions over compensation. Jingye had previously said it would seek payment if the business was nationalised, after saying last year that it hoped to recover as much as £711m in debts owed by British Steel. The government said an independent valuer would be appointed to assess whether compensation is due, with regulations for the scheme expected in the autumn. In March, the National Audit Office estimated that running the Scunthorpe steelworks was costing the state about £1.3m a day.
Business secretary Peter Kyle said the focus now would be on stabilising the company and supporting the communities that depend on it, while building a steel sector that is sustainable, competitive and decarbonised. British Steel’s interim chief executive, Allan Bell, described the move as a historic moment for the company and for UK manufacturing, saying it protects the firm’s future and strengthens national security and infrastructure. Separately, official data showed the UK economy grew by 0.1% in May.
Source: theguardian.com
