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PARLIAMENT has been recalled for MPs to vote on nationalising British Steel today.
Downing Street announced yesterday that MPs will discuss an emergency law to save British Steel’s plant in Scunthorpe from imminent closure and “all options remain on the table.”
The legislation would reportedly give ministers powers to “protect” the Lincolnshire site by compelling the current Chinese owner Jingye to transfer control to the government because it is a matter of national interest.
Prime Minister Sir Keir Starmer said that he will seek to pass a law in one day to give the government power to secure the future of steel-making at the Scunthorpe plant.
He said that he will “act to protect British jobs and British workers” as the future of British Steel hangs in the balance with economic and national security “on the line.”
Speaking at No 10, he added that Britain needs “more steel not less” and there was no time to waste.
The government would do everything possible to stop the closure of the blast furnaces at the plant, he said.
Community general secretary Roy Rickhuss said: “We welcome this decision to recall Parliament — it is in the national interest that a solution is found to secure a future for British Steel as a vital strategic business.
“We can’t allow Britain to become the only G7 country without primary steelmaking capacity.
“In the absence of a deal with Jingye to continue blast furnace operations at Scunthorpe as part of a transition to greener steelmaking, it is essential that we see urgent action taken to bring British Steel into public ownership.”
Unite general secretary Sharon Graham said: “Ministers could not have allowed a foundation industry to go under with the loss of more than 3,000 jobs and key skills.
“It is absolutely the right thing to do to begin the process of nationalisation.
“Discussions have been positive and whilst a longer-term plan needs to be developed, this gives workers the reprieve we have been asking for.
“It is essential that Scunthorpe receives the relevant infrastructure and kit to allow it to thrive as a modern steel producer long into the future.
“Unite is also urging the government to consider making steel an area of critical national infrastructure and ensure that UK steel is used on all infrastructure projects.
“This move is needed to back the British steel industry as a whole.
“It is also vital that the government tackles the issue of industrial energy costs.”
GMB national officer Charlotte Brumpton-Childs said: “GMB has long called for nationalisation as the only way to save the UK steel industry.
“Tomorrow looks like the first step in that process. The Business Secretary [Jonathan Reynolds] must be given huge praise for acting decisively to safeguard this vital industry and the thousands of jobs that rely on it.”
Ministers have been in negotiations with British Steel and Jingye throughout the week after the latter said the blast furnaces are no longer financially viable.
There are fears that Britain’s last operating blast furnaces could be forced to close as early as next month after Jingye cancelled future orders for raw materials needed to keep them running.
An impasse over a government funding package for Britain’s second-biggest steel producer has put more than half of British Steel’s 3,500-strong workforce at risk.
Labour MP Andy McDonald said: “Britain must maintain a primary steel-making capacity as we seek to deliver the infrastructure we need and grow our economy for public benefit.
“Private ownership and offers of commercial bailouts are failing to maintain steel jobs and steel production.
“To keep the blast furnaces running, the government should take British Steel into public ownership.
“And — as it has done with popular support for rail — it should do so with confidence that it is the right decision in the public interest.”
Former Labour leader Jeremy Corbyn MP said: “I will be supporting the permanent, public, democratic ownership of steel.
“While we’re at it — let’s do the same for water, energy, rail and mail too.”
The TUC warned yesterday that ministers must invest in manufacturing, steel and automotive industries as “turbulent times” mean “we cannot take anything for granted.”
Britain’s economy picked up faster than expected in February, in a boost for Labour ahead of an expected slump caused by Donald Trump’s trade war.
TUC general secretary Paul Nowak said: “We must use every lever possible to support economic growth and protect working people.
“That means resetting relations with our biggest and closest trading partner – the EU.
“It means backing British jobs by investing in manufacturing and safeguarding foundation industries like automotive and steel.
“And it means easing the pressure on households and businesses by cutting interest rates.”
ONS director of economic statistics Liz McKeown said the economy grew “strongly,” pointing to more activity across the services and manufacturing industries.
Chancellor Rachel Reeves welcomed the figures as an “encouraging sign” but said she was not complacent as they predate the recent upheaval caused by Mr Trump’s tariff announcements.
The accountancy firm EY is reportedly being lined up by the government to play a role in the emergency nationalisation of British Steel.
It is understood the House of Lords will also be recalled.