UK Government Seizes Control of British Steel to Save Industry and Jobs

In a dramatic and rare emergency intervention, the UK government has taken control of the Chinese-owned British Steel plant in Scunthorpe, aiming to preserve the country’s primary steelmaking capabilities and safeguard thousands of jobs

In an urgent move to protect Britain’s steel industry, the UK government has assumed control of British Steel’s Scunthorpe plant using emergency powers passed in an extraordinary session of Parliament on Saturday. The legislation, pushed through both the House of Commons and the Lords in a single day, comes after warnings that the plant’s owners, Chinese firm Jingye, intended to shut down its two blast furnaces—threatening the future of primary steel production in the UK.

Business Secretary Jonathan Reynolds announced that nationalisation is now the likely next step, citing Jingye’s refusal to purchase raw materials and its alleged intent to halt operations. Government officials are already stationed at the site, prepared to oversee day-to-day management.

“This is about securing the future of British industry,” Reynolds told MPs. “Steel is fundamental to our economy, security, and national identity. We could not sit back and allow this capability to disappear.”

Prime Minister Sir Keir Starmer reaffirmed the government’s commitment: “We are acting to protect thousands of jobs and ensure steel made in Britain continues to be the backbone of our infrastructure. Our industry is our pride—and I want it to be our future too.”

The new emergency legislation gives ministers sweeping authority over the plant, including the ability to secure assets and ensure continuous operations, even by force if necessary. Jingye, while retaining legal ownership for now, has effectively ceded operational control.

The move follows growing tension between workers and Jingye representatives, including a reported incident Saturday morning where the company’s executives were denied entry to the site due to a breach of peace.

Public sentiment in Scunthorpe remains strong, with hundreds of workers and residents rallying to demand government action. Steelworker Rob Barroclough told the BBC, “Our family, like many others, is built around the steelworks. We’re hoping for the best but planning for the worst.”

While opposition parties broadly supported the emergency powers, some MPs criticized the government for not acting sooner. Former Labour leader Jeremy Corbyn and Green MP Ellie Chowns both urged full nationalisation to ensure long-term sustainability.

The legislation applies solely to England, prompting questions from Scottish and Welsh MPs about similar interventions in other struggling industrial regions.

Despite the uncertain financial future of the plant, Reynolds said public ownership, even at taxpayer cost, is a necessary investment in Britain’s industrial independence. “This is about whether we want to rely on foreign imports or preserve the ability to make our own steel.”

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