Parliament Recalled in Bid to Save British Steel

Keir Starmer is stepping in to seize control of British Steel to stop its Chinese owner shutting the Scunthorpe plant in an unprecedented move that paves the way for likely nationalisation.

- Rowena Mason Eleni Courea Jasper Jolly

Parliament is being recalled today, with MPs to debate emergency laws that would give the business secretary, Jonathan Reynolds, the power to direct the company.

Once the legislation is passed, Reynolds will be able to order the company to buy the raw materials to keep two blast furnaces going at the plant and the taxpayer will take on the costs of the purchases. The company's owner, Jingye, has said it is losing about £700,000 a day.

The issue of nationalisation will be dealt with separately and is not certain to happen, but senior sources said it was the likely outcome and the government would look at potential private sector partners for a transfer of ownership and co-investment. The company declined to comment and it remains unclear how Jingye will respond to being directed by the British government.

Government sources said generous offers had been made to the Chinese company that any rational actor would have accepted and that Britain was taking action to keep the furnaces going in order to continue talks about the next steps. If they were allowed to stop, the furnaces would be impossible to restart.

Speaking yesterday, Starmer said the "future of British steel hangs in the balance" and he would not stand by while the last blast furnaces in Britain were closed, shutting an essential industry.