The UK government is reportedly considering nationalising British Steel as concerns mount over the imminent shortage of raw materials at its Scunthorpe blast furnaces. Chancellor Rachel Reeves has assured workers that nationalisation remains an option, emphasizing the steel industry’s strategic importance during discussions with trade unions.
British Steel has declared its Scunthorpe operations “no longer financially sustainable,” putting 2,700 jobs at risk without state intervention. The company, owned by China’s Jingye Group since 2020, claims daily losses of £700,000 despite investing over £1.2 billion.
Prime Minister Keir Starmer has stated that “all options remain on the table” to secure the plant’s future, though he offered no specifics. The government has proposed £500 million to transition from blast furnaces to electric arc furnaces—a plan rejected by British Steel.
With raw material supplies dwindling, Whitehall officials fear the furnaces may shut within days, exacerbating the crisis. The political stakes are high, with the Lincolnshire mayoral election approaching on 1 May. Reform UK leader Nigel Farage, who visited the site, urged temporary nationalisation, while local Conservative MP Martin Vickers warned that without immediate action, the furnaces could cease operations.
Business Minister Sarah Jones reiterated the government’s commitment to preserving jobs and steel production but stressed that nationalisation would be a last resort. Opposition parties, including the Liberal Democrats and Greens, are also vying for influence in the mayoral race.
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