Parliament Recalled for Emergency Law to Save British Steel Plant in Scunthorpe

Parliament has been recalled from its Easter recess to pass emergency legislation aimed at saving British Steel’s Scunthorpe plant from imminent closure. The move underscores the urgency of the situation, with Prime Minister Sir Keir Starmer stating that the future of steelmaking in the UK “hangs in the balance.”

The proposed law would give ministers temporary powers to take control of the Lincolnshire site, preventing its Chinese owner, Jingye Group, from shutting down its two blast furnaces. While the legislation does not allow for full nationalization, it lays the groundwork for potential government ownership, with Starmer confirming that “all options” remain on the table.

British Steel has been incurring heavy losses, reportedly around £700,000 per day. Jingye, which bought the company in 2020, says it has invested over £1.2 billion. It has deemed the blast furnaces “no longer financially sustainable” due to difficult market conditions, international tariffs, and the high costs associated with transitioning to greener production.

The government previously offered £500 million to help the company switch to electric arc furnaces — a more environmentally friendly alternative — but Jingye rejected the proposal. Attempts earlier this week to broker a deal by offering to purchase coking coal for the furnaces also failed.

Industry Minister Sarah Jones criticized the company’s conduct during negotiations, stating that Jingye had “not been acting in good faith.” The emergency legislation would allow the government to order raw materials, direct the company’s board and workforce, and protect employees who act to keep the plant operational from dismissal.

Unions have strongly backed the intervention. Unite called the move a “reprieve,” while GMB said it appeared to be “the first step” toward full nationalization — a step they fully support. The Community Union warned that the UK must not become the only G7 country without primary steelmaking capacity.

The Scunthorpe site employs 2,700 people and is vital for the UK’s industrial future and national security. A local “Save Scunthorpe Steel” campaign is set to take place alongside a parade during Scunthorpe United FC’s match, underscoring the deep community ties to the industry.

This marks only the sixth time since World War Two that Parliament has sat on a Saturday, highlighting the significance of the issue.

About The Author