'Likely' British Steel will be nationalised as Government rushes to save Scunthorpe site
15 April 2025, 23:25
Business secretary Jonathan Reynolds has said it is 'likely' British Steel will be nationalised after the government scrambled to save the steel plant in Scunthorpe.
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Jonathan Reynolds told reporters nationalisation was the "likely option at this stage".
"What we are now going to do, having secured both control of the site and the supply of raw materials, so the blast furnaces won't close in a matter of days, is work on the future," he said.
"We've got the ownership question, which is pressing.
"I was clear when I gave the speech in parliament - we know there is a limited lifespan of the blast furnaces, and we know that what we need for the future is a private sector partner to come in and work with us on that transformation and co-fund that transformation."
The business secretary said he would look at Chinese firms "in a different way" after the race to save Scunthorpe.
This comes as raw materials secured by the Government arrived in the UK today to keep British Steel blast furnaces burning.
Ministers have taken control of the firm to ensure supplies such as coking coal and iron ore reach the site after talks with its Chinese owner, Jingye, broke down.
Read More: Supplies arrive in UK as Government rushes to save British Steel Scunthorpe site
Industry minister Sarah Jones told LBC on Tuesday: “On any important infrastructure there would be stringent tests – and I would look at each case in point – and we would look at the stringent tests that we have in place.
“I’m not going to second-guess where the Secretary of State or others might choose to make decisions.”
Ms Jones said having a pragmatic relationship with Beijing, the world’s second biggest economy, is still important.
But she added: “When it comes to infrastructure, we will make sure on a case-by-case basis that we are not letting anything get in the way of our national security and that we are applying those stringent tests.”
Asked if the Government would rule out another Chinese partner for the plant after taking control from Jingye, Ms Jones told Sky News: “At the moment, I’m not going to say yes or no to anything that isn’t at the moment on the table or being looked at.”
Downing Street said it had become “clear” during talks that the Chinese owners “wanted to shut the blast furnaces”.
But No 10 said it was not aware of any “sabotage” at the plant, when asked if there were any concerns that officials from Jingye may have purposefully attempted to shut down the furnaces.
British Steel has appointed interim executives as efforts continue to try to secure its future.
British Steel staff and civil servants race to keep Scunthorpe blast furnaces on
The materials, sent from the US, are enough to keep the furnaces running for weeks, the Department for Business and Trade said, adding that they have been paid for out of its existing budget.
The shipment was welcomed by steelworkers’ union Community, which said the arrival of the materials is a “huge relief” after Jingye’s “disgraceful actions” risked thousands of job losses, while British Steel said it offers “great hope” for the future.
It came after Downing Street said the Government was “confident” it would be able to secure the products necessary to keep the site running, and that work was continuing to get a “steady pipeline” of materials.
A third ship carrying coking coal and iron ore is on its way to the UK from Australia after a legal dispute between British Steel and Jingye was resolved.
The raw materials are necessary to prevent the cooling of the blast furnaces, which would risk irreparable damage to the plant systems.
The Government passed emergency legislation designed to support the site on Saturday after talks with Jingye failed to reach a resolution.
Mr Reynolds has said the firm’s plans to stop ordering new raw materials to keep the plant running and sell off supplies it already had prompted the Government into action.
Meanwhile, Beijing has accused the UK of “politicising” trade co-operation, and suggested its companies could be put off investing in Britain if they are not treated “fairly”.
British Steel said in a statement: “Today, we are pleased to confirm that vital raw materials are being unloaded at our port facility, Immingham Bulk Terminal. They will then be transported to our headquarters in Scunthorpe to support our iron and steelmaking operations.
“Other raw materials are also on their way.
“While this remains a challenging period for British Steel colleagues, we now have great hope.
“We’d like to thank the UK Government, our customers, suppliers and industry peers for their unflinching support. And above all, we’d like to recognise the incredible efforts of our employees – the finest steelmakers in the world.”
The Liberal Democrats said reverting back to Chinese ownership would be like “finding your house ransacked and then leaving your doors unlocked”.
The party’s foreign affairs spokesman Calum Miller MP said: “Domestic steel production is absolutely vital to our national security and to put that at risk again would be completely unacceptable.
“The Government should rule out any Chinese firms’ future involvement in the ownership of British Steel – and certainly until it has completed and published its China audit.
“The stakes are simply too high.”
