The UK has taken a decisive step toward nationalising the steel industry after Parliament passed the Steel Industry (Nationalisation) Bill, which received royal assent on Wednesday. The legislation empowers the government to bring Scunthorpe-based British Steel under public ownership, a move Energy Minister Chris McDonald described as acting "decisively and with a purpose in the national interest."
Parliamentary approval and reaction
The House of Commons approved amendments to the bill on Tuesday, following changes made in the House of Lords. The King signed it into law the next day, clearing the way for the state to take control of the struggling steelmaker. McDonald rejected criticism from shadow business secretary Andrew Griffith, who argued that "nationalisation is a bad idea" and blamed Energy Secretary Ed Miliband's "addiction to ruinously high energy prices" for the industry's woes.
Local impact and future concerns
North Lincolnshire Council leader Rob Waltham welcomed the news as "significantly important" for Scunthorpe and the surrounding area, saying it provides "a certain future for steel-making in Scunthorpe." He emphasised that British Steel is critical to national infrastructure, noting that "you don't build much without steel, you don't deliver much without steel and, certainly, you don't defend yourself without steel." However, he cautioned that the government will need further investment to ensure a sustainable steel industry going forward.
Compensation and previous measures
Last year, Parliament granted special powers to direct British Steel's operations in Scunthorpe, preventing its Chinese owner, Jingye, from closing blast furnaces while the company remained privately owned. Jingye has now begun seeking compensation for nationalisation, having previously claimed the business was losing £700,000 a day. The UK government has indicated it could limit or refuse compensation.