British Steel 'facing nationalisation' if rescue plan fails
3 December 2024, 21:28 | Updated: 3 December 2024, 21:53
The Labour government is reportedly considering the nationalisation of British Steel.
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Downing Street is considering the measure amid demands from Chinese owners to increase UK investment.
The whole company could be nationalised if talks between owners and investors fail, the Telegraph reports.
This would mark the latest in a series of nationalisations by Sir Keir Starmer’s government, with rail companies also falling into state ownership in the coming years.
British Steel has seen profits and investment decline in recent years, with the company employing just 23,000 in 2022, down from 250,000 in 1970.
A government source told the Telegraph that while nationalisation was an option, Labour would prefer to find a different solution.
The source said: “It is one of several options being looked at. We would have been negligent not to look at it.
“But it is the least attractive option. We would be talking substantial sums of money to buy not very much.”
A Department for Business and Trade spokesperson told LBC: “We have no plans to nationalise British Steel.
“We’re working across government in partnership with trade unions and businesses to secure a green steel transition that’s right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain.”
Claire Coutinho, Conservative shadow energy secretary, told the outlet she was against the move.
She said: “Labour can’t expect the British taxpayer to pick up the bill for every industry they make uncompetitive.”
Trade Unions though have thrown their support behind nationalisation.
Why shouldn't public services be privatised in England?
“Recent history has shown we must retain control over crucial industries like steel. Leaving domestic production to the whims of the open market is sheer folly,” Charlotte Brumpton-Childs of GMB told the outlet.
“Rather than forking out billions of taxpayer cash to reward private sector failure, the money should be used to renationalise our once proud steel sector.”
Sharon Graham, the general secretary of Unite, added: “Unite has long argued that steel should be designated as a critical infrastructure area of the UK economy. It is vital that our steel industry has a plan for the future that includes more jobs and new technology.
“The Government being an investor of first resort is an important first step. Previous governments have sold the family silver and now most of our critical infrastructure is owned by other countries or companies outside the UK.”
