The UK government officially took control of British Steel [1] after the Steel Industry (Special Measures) Act received Royal Assent, marking a pivotal moment in the nation’s industrial policy. The emergency legislation, passed in a rare Saturday sitting of Parliament, grants the business secretary sweeping powers to manage British Steel and other steel assets, ensuring the continuity of steel production in the country.
The Act, which became law at midnight, allows the government to order materials for steelmaking, ensure workers are paid, and even impose jail sentences of up to two years for breaches of the law. Government employees are already on standby to assume control of the British Steel factory in Scunthorpe, a site critical to the UK’s steel industry.
Union leaders have welcomed the intervention but are calling for further measures to support the sector. Paul Nowak, general secretary of the TUC, emphasized the importance of using British steel in domestic infrastructure projects to bolster local economies. “The government stepping in to take control of British Steel is the right thing to do and it’s in the national interest,” Nowak stated.
The legislation faced intense debate in the House of Lords, with some peers proposing a “sunset clause” to limit the emergency powers to six months. However, the government rejected the amendment, citing the unpredictable international situation and the need for flexibility. Business Secretary Jonathan Reynolds has pledged to report to Parliament every four weeks on the use of these powers.
The Scunthorpe plant, which employs thousands and supports many more in the supply chain, has been at the heart of the crisis. Community Union representatives highlighted the broader economic impact, noting that every steelworker job supports an additional seven people in related industries.
The government’s move has sparked discussions about the future of the UK’s steel industry and the role of foreign investment in critical infrastructure. As the situation unfolds, all eyes remain on Scunthorpe and the workers who depend on the plant’s survival.
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[1] British Steel emergency bill becomes law — as it happened https://www.thetimes.com/uk/politics/article/british-steel-latest-news-parliament-scunthorpe-c3pnlxgm8