Parliament acts to save British Steel with nationalisation push
Both houses of the British parliament endorsed the government's proposal on Saturday for the state to take control of British Steel. MPs convened for an extraordinary session to prevent the company's owner, the Chinese group Jingye, from shutting down the last two blast furnaces in the country.
With the passage of the bill, the British government aims to prevent the closure of the steelworks in Scunthorpe, northern England, where 2,700 people are employed. This is the last plant that smelts steel from iron ore. According to media reports, Keir Starmer's government is considering the nationalisation of British Steel.
The MPs gathered after the government called for an extraordinary session on Friday. The British parliament is currently in Easter recess until 22 April. "The future of British Steel hangs in the balance. Jobs, investment, growth, our economic and national security are all on the line," Prime Minister Starmer said on Friday.
Reuters highlighted that British MPs have been called during a recess only in exceptional circumstances, such as in 2021, when extraordinary sessions concerned the withdrawal of troops from Afghanistan.
British Steel, which is owned by the Chinese group Jingye, had warned that it might be forced to shut down two of its large blast furnaces because their operation is unprofitable. The group attributed this to the market situation, including tariffs and costs associated with compliance with environmental protection regulations.
Trump's decision worsened the situation
The AP agency noted that a further blow to British Steel's financial prospects was the 25% tariffs on steel and aluminium, introduced in March by US President Donald Trump.
Trade unions welcomed the decision to convene parliament to discuss saving the steelworks and expressed hope that the government would take control of the plant. The UK was once one of the world's leading steel producers, and after World War II, the British steel industry employed over 300,000 people. Currently, this sector accounts for only 0.1% of the country's economy and employs about 40,000 people – according to the AP agency.
