British Steel has been taken into public ownership, with ministers arguing the only alternative was to let the country’s last producer of virgin steel go bust. For the thousands of smaller firms that rely on Scunthorpe’s output, the move ends years of uncertainty, but leaves taxpayers footing a running bill of about £1.3 million a day.
The government said nationalisation would protect jobs and safeguard “a vital national capability”. The Scunthorpe works employs roughly 2,700 people and supports many more businesses across north Lincolnshire and the wider supply chain.
It follows Wednesday’s vote in Parliament to pass legislation allowing the steel industry to be brought into public ownership where a public interest test is met, completing the public ownership plan Sir Keir Starmer confirmed in May.
The government had already taken control of day-to-day operations last year. But with China’s Jingye Group still the legal owner, ministers had limited freedom to decide the plant’s future. Full ownership removes that constraint while keeping the blast furnaces lit.
Business Secretary Peter Kyle told the BBC the government would need to cover running costs “for the immediate future”, with an independent assessor to determine whether Jingye, which is seeking compensation, should be paid based on the value of the company.
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