Bill To Save British Steel Passes In One Day
MPs were recalled to Parliament today to debate the emergency legislation (Alamy)
3 min read
Parliament has passed the Steel Industry (Special Measures) Bill, providing the government with the power to direct steel companies in the United Kingdom and save British Steel from closure.
In an opening statement to the House of Commons this morning, the Business Secretary Jonathan Reynolds said that while the Bill does not nationalise British Steel, that is “likely still an option” and “remains on the table”.
Reynolds said that the “exceptional” decision to recall Parliament from its Easter recess came after it “became clear” that the blast furnaces in the British Steel in Scunthorpe could close.
The legislation passed today will be used to protect the Scunthorpe site and allow the government to buy the materials used to keep the site running.
The law gives the government the power to direct British Steel to enter contracts, appoint officers, direct what work is done, ensure payments are made, and allow information to be provided to the Secretary of State.
If the rule of the law is not followed, the government will have the power to enter the site "using force if necessary".
Reynolds said that steel is "fundamental to Britain's industrial strength, to our security, to our identity as a primary global power".
If British Steel were to close, the United Kingdom would be the only G7 nation without the ability to make virgin steel, costing thousands of people their jobs.
Concerns were also raised in the House of Commons about what the loss of steel-making capabilities would mean for UK security and the economy.
The move came after concerns erupted in recent weeks over whether production at Chinese-owned British Steel in Scunthorpe would continue, as the government looked to boost industrial policy in the face of US President Donald Trump’s tariff war.
In February, Trump announced a 25 per cent import tax on steel and aluminium imports into the United States.
Reynolds also criticised the leader of the opposition Kemi Badenoch for failing to negotiate a deal while secretary of state for business and trade.
Reform has made the nationalisation of British Steel a key campaigning point in recent weeks with the leader Nigel Farage and deputy leader Richard Tice visiting the site in Scunthorpe.
Reynolds said today that the government had been in discussions with the Chinese company Jingye, which currently owns the plant, since the general election last summer.
The Business Secretary said that Jingye intended to refuse to purchase sufficient raw materials to keep the blast furnaces running, leading to the emergency legislation.
Jingye has claimed that the running of the blast furnaces has become “unsustainable” and the plant was losing £700,000 a day and had already begun a 45-day consultation on job cuts.
Reports today claimed that Chinese executives had attempted to access critical parts of the Scunthorpe steelworks on Saturday morning.
During the debate in both the House of Commons and the House of Lords, concerns about the lack of a 'sunset clause' - which would give the legislation an expiry date - was raised by the shadow development minister Dame Harriet Baldwin.
An amendment to insert a sunset clause was later tabled in the Lords but was later withdrawn to allow the bill's passage through Parliament.
