The UK government is set to recall parliament for an emergency vote on British Steel, with the bill aiming to bring the embattled industry under public control. The move comes as Chinese owners Jingye plan to close two blast furnaces at the Scunthorpe site, putting 2,700 jobs at risk.
The UK government has announced that it will recall parliament on Saturday to vote on emergency legislation that will bring ‘direct steel companies in England’ under government control. The bill will give the prime minister the power to ‘direct steel companies in England’, which will be used to stop Chinese owners Jingye from closing the Scunthorpe site.
The Scunthorpe plant, owned by Jingye, is seen as strategically important for the UK due to its ability to produce steel from iron ore. However, Jingye has planned to close two blast furnaces, putting 2,700 jobs at risk. The government had offered £500m in financial support to switch the blast furnaces to cleaner electric arc furnaces, but Jingye had requested much more.
Jingye is a Chinese state-owned conglomerate with diverse business interests, including steel production, 'real estate development' , and financial services.
Founded in 1950 , the company has undergone significant expansion and diversification under its current leadership.
Jingye's steel operations are among the largest in China, producing over 10 million tons of steel annually.
The company also invests heavily in renewable energy and technology sectors.
The government has been negotiating with British Steel’s owners in good faith since coming to office. However, talks have stalled due to disagreements over the terms of the offer. The government is now seeking to take control of the company through emergency legislation.
British Steel is a major steel producer in the United Kingdom, with a history dating back to 1986.
The company was formed through the privatization of the British Steel Corporation, which was nationalized in 1967.
Today, British Steel operates several production sites across the UK, producing over 13 million tonnes of steel annually.
The company's products include construction steels, rail steels, and special profile sections for various industries.
While the government has not ruled out nationalising British Steel, it remains a leading option as it is unclear how Jingye’s Chinese owners will respond to being directed by the UK government. The move has been described as the ‘first step in the process’ of nationalisation by the GMB union, which represents workers at the plant.
The Commons will sit at 11am on Saturday, with MPs called back from Easter recess to discuss putting the assets under public control. Labour MPs have been told to return to Westminster to ensure the passage of the legislation. This is the first recall of parliament since 1982 and the last time it was recalled during recess was in 2021 when Afghanistan had to be evacuated due to the Taliban takeover.
The industry will be hit by a 25% tariff on steel exports to the US imposed by Donald Trump, which has further exacerbated the crisis at British Steel. Talks had dragged on for three days after the government offered to buy raw materials to keep the plant running for the next few weeks while trying to find a longer-term solution.
The situation at Scunthorpe is becoming increasingly critical, with workers fearing job losses and the industry facing significant disruption. The government’s move to recall parliament and introduce emergency legislation is an attempt to address this crisis and ensure the continued operation of British Steel blast furnaces.
Located in North Lincolnshire, England, Scunthorpe is a town known for its rich history and industrial heritage.
The town's steel industry dates back to the 19th century, with the first steelworks established in 1905.
Today, Scunthorpe remains a major steel-producing center, home to several large-scale steel manufacturers.
Visitors can explore the town's past at the North Lincolnshire Museum or take a tour of the nearby British Steel plant.
- theguardian.com | Parliament recalled for emergency vote on British Steel
