UK Government Seizes Control of British Steel to Save Nation’s Last Primary Steelworks

LONDON — The UK government has taken extraordinary steps to seize operational control of British Steel, invoking emergency legislation to prevent the closure of the nation’s last functioning blast furnaces in Scunthorpe. The move marks the most significant government intervention in the steel industry in decades, as ministers scramble to safeguard more than 2,700 jobs and preserve the UK's ability to produce steel from raw materials.

Business Secretary Jonathan Reynolds addressed a rare Saturday sitting of both Houses of Parliament, telling MPs that the Labour government had been left with no option but to act decisively after Chinese owner Jingye threatened to shut down production.

“Our actions today are about protecting British industry, our workers, and our national security,” Reynolds told the Commons. “We will not stand by while the heart of our steel sector is ripped out.”

Within hours of the bill receiving Royal Assent, government officials were on the ground in Scunthorpe to take control of day-to-day operations. The sweeping legislation grants ministers the power to manage the plant directly, secure its assets, and if necessary, physically enter the premises to ensure continuity of production.

Starmer: “Backbone of British Industry”

Prime Minister Sir Keir Starmer hailed the intervention as a critical moment in British industrial policy.

“Today, my government has stepped in to save British steel,” Starmer said in a statement issued shortly after the bill passed. “Steel made in Britain will be the backbone as we get Britain building once more.”

Speaking directly to steelworkers gathered in a nearby village hall, Starmer added: “You are the people who have kept this going. Our industry is the pride of our history — and I want it to be our future too.”

Hundreds of steelworkers and their families joined a march through Scunthorpe, rallying at Glanford Park stadium under the banner: “We want our steel back.”

One local worker, Rob Barroclough, told the BBC: “Our family, like many others, is built around the steelworks. Who knows… my boys might end up working there one day, if it can be saved.”

Tense Stand-Off with Jingye

The escalation followed a breakdown in talks between the government and Jingye Group, the Chinese conglomerate that acquired British Steel in 2020. Reynolds accused the company of refusing “a substantial” offer to help fund raw material supplies necessary to keep the blast furnaces running.

“Their intention was to cancel and refuse payment for existing orders of raw materials,” Reynolds said. “That would have led to the unilateral and irreversible closure of primary steelmaking in this country.”

Tensions at the site had already been rising. Police were called on Saturday morning after a suspected breach of the peace when Jingye executives were reportedly denied access to the plant by its automated security system. No arrests were made, but the incident underscored the fragile relationship between workers and management.

For now, Jingye remains the legal owner of British Steel, though Reynolds admitted nationalisation is now the “likely option.”

“We will pay a fair market rate to shareholders,” he said, “but in this case, the market value is effectively zero.”

Cross-Party Consensus – With Criticism

The emergency legislation passed without opposition, though the Conservative Party accused the government of reacting too late.

“They’ve made a total pig’s breakfast of this whole arrangement,” one Tory MP said during debate, while backing the need to protect jobs.

Other parties offered broader support. Reform UK’s deputy leader Richard Tice urged full nationalisation “this weekend,” while Green MP Ellie Chowns argued that a state-run steel industry is essential to the UK’s green transformation, supporting rail and wind energy infrastructure.

Plaid Cymru and SNP MPs criticised the government for failing to extend the same protections to steel plants in Wales and oil refineries in Scotland.

“It is a bitter day for Port Talbot,” said Liz Saville Roberts MP, referring to the Tata Steel works in South Wales, where jobs were lost without similar government intervention.

Steel as Strategic Asset

The national debate is no longer just about jobs — it’s about sovereignty, energy transition, and security. Reynolds made it clear that steel was not just another commodity.

“Steel is fundamental to Britain’s industrial strength, to our security, and to our identity as a primary global power,” he declared.

While the future of the Scunthorpe plant remains uncertain, the government says it remains committed to securing private investment — though it acknowledges no viable buyer has yet stepped forward.

Until then, ministers will manage the site, with nationalisation on the horizon — a dramatic revival of state involvement in heavy industry not seen since the post-war era.