Parliament to vote on granting Government control of British Steel

MPs are set to vote on whether to grant the Government control of British Steel as emergency legislation paving the way for nationalisation comes before Parliament.

Both the Commons and the Lords will break from Easter recess for a highly unusual Saturday sitting to debate a Bill aimed at blocking the company’s Chinese owners, Jingye, from closing blast furnaces at its Scunthorpe plant.

The plans would see taxpayer money used to provide materials to the steelworks and open the door to a transfer of ownership after Sir Keir Starmer warned the future of the firm “hangs in the balance”.

Ministers hope to secure a private partner to open up co-investment options for a transition but urgent temporary action was seen as necessary to keep the plant running until longer-term plans are agreed.

The Commons sitting will begin at 11am and the House of Lords from midday in the first parliamentary recall on a Saturday since 1982, when MPs returned after the start of the Falklands War.

Other significant recalls during recent years included a midweek sitting during the summer recess in August 2021 to debate the evacuation from Afghanistan.

In a letter to MPs shared with the PA news agency, Commons Speaker Sir Lindsay Hoyle said he was satisfied the “public interest” requires the recall to debate the Steel Industry (Special Measures) Bill.

Jingye, which bought British Steel in 2020, has said it invested more than £1.2 billion to maintain operations amid ongoing production instability and “significant” financial losses of around £700,000 a day.

The Government says the new law would allow it to order raw materials for Scunthorpe’s blast furnaces amid fears supplies are on the brink of running out.

Ministers would be able to direct the company’s board and workforce, and ensure anyone at the plant “who takes steps to keep it running, against the orders of the Chinese ownership” can be reinstated if they are sacked.

The proposals to close Scunthorpe’s furnaces had sparked fears of job losses at the plant, which employs thousands of people.

Business Secretary Jonathan Reynolds said Jingye had confirmed the plans despite months of talks and a £500 million co-investment offer from Government, leaving ministers “no choice” but to act to spare job losses and save the plant.

Unions welcomed the move but Tory leader Kemi Badenoch accused Labour of having “bungled the negotiations” and said “their incompetence has led to a last-minute recall of Parliament.”

Liberal Democrat Sir Ed Davey called the debate an opportunity to advance “a serious plan for the sustainable future of domestic steel production” while Reform UK leader Nigel Farage reiterated his backing for nationalisation.