UK Government Takes Control of British Steel to Avert Scunthorpe Plant Closure

The UK government has passed emergency legislation to take control of British Steel's Scunthorpe plant, aiming to prevent its closure. The move comes after concerns that the Chinese-owned company might shut down the country's last remaining blast furnaces. Parliament held an extraordinary session on Saturday to approve the bill, which has now become law following royal assent. This rare weekend sitting underscores the urgency of safeguarding the UK's steel industry, which is considered vital for the economy, jobs, and national security. Business Secretary Jonathan Reynolds indicated that nationalisation may be the likely option to secure the future of British Steel. Treasury Minister James Murray criticised the company's owner, Jingye Group, accusing it of 'behaving irresponsibly' by threatening to close the furnaces without warning. Government officials are now racing to secure essential raw materials, such as coking coal, to keep the Scunthorpe blast furnaces operational. The delay in obtaining these materials poses a risk to continuous steel production, prompting efforts to expedite their delivery to the plant. The Chinese embassy has urged the UK government to act with fairness towards Chinese enterprises investing in the country. Despite this, ministers have expressed reluctance to involve Chinese firms further in the UK steel sector, citing sensitivities around national infrastructure.