UK Steel has “strongly welcomed” the prime minister’s announcement today that the government intends to take British Steel into public ownership, as “a decisive step to secure the future of a strategically vital part of the steel supply chain”.
In a statement this morning (11 May), the prime minister announced that, as a commercial sale has not been possible at this stage, the “public interest” test for nationalisation has now been met.
Under the move, British Steel could be back in government hands for the first time since being sold off in 1988.
Prime Minister Keir Starmer said: Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.
“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.
UK Steel – the trade association for the British steel industry – said, the decision “brings much-needed certainty for British Steel’s skilled workforce and customers”, while “safeguarding a critical foundation of the UK’s industrial base at a time of increasing global instability and competitive pressures”.
It added that “steel remains essential to the UK’s national security, infrastructure delivery and economic resilience, and ensuring the continuity of domestic production is vital to supporting key sectors including construction, energy, rail and manufacturing”.
Gareth Stace, director-general of UK Steel, said: “We strongly welcome the prime minister’s announcement to legislate for the nationalisation of British Steel.
“This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment. Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience.”
Stace added: “Nationalisation is not an end goal. This must now be the beginning of a clear and credible long-term plan for British Steel. We need to see a detailed investment strategy that supports a managed transition to low-carbon steelmaking, and broader action to tackle the sky-high energy prices in the UK, which are undermining the competitiveness of the steel industry.
“With the right backing and a supportive policy environment, the UK steel sector can be competitive, support thousands of high-quality jobs, and play a central role in delivering the UK’s industrial and decarbonisation ambitions.”
Going forwards, UK Steel said it will continue to work closely with government and industry partners to ensure that this intervention leads to a sustainable, competitive and low-carbon future for UK steelmaking.
Like what you’ve read? To receive New Civil Engineer’s daily and weekly newsletters click here.