In a dramatic legislative sprint, the UK government pushed through emergency legislation in a single day to take control of Chinese-owned British Steel, aiming to prevent disruption at the Scunthorpe plant. The move came after concerns that Jingye, the current owner, was attempting to sell off raw materials critical to keeping the blast furnaces operational.
Prime Minister Keir Starmer met with steelworkers in Lincolnshire shortly after the House of Commons approved the bill, which received Royal Assent by 6 PM on Saturday. This swift legal maneuver allowed government officials, stationed at a nearby Premier Inn, to enter the plant and implement a new management structure, with professional services firm EY assisting in the transition.
Ministers are optimistic that the takeover will secure the necessary supplies to maintain operations at the Scunthorpe site, which employs 2,700 people. However, critics, including the Conservatives, question whether the crisis could have been anticipated earlier, avoiding the last-minute scramble. Industry experts also warn that challenges remain, particularly given the complexities of international supply chains and ongoing trade tensions, including US President Donald Trump’s tariffs.
While the emergency measures provide a temporary solution, full nationalisation of British Steel appears increasingly likely as the government seeks a long-term resolution.
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