Highlights
- Government to introduce legislation for public ownership of British Steel
- Move follows failed talks with Chinese owner Jingye
- British Steel’s last blast furnace plant was at risk of closure last year
- Nationalisation would be the first since 1988
PRIME MINISTER Keir Starmer said on Monday that the government would introduce legislation to nationalise Chinese-owned British Steel after taking control of the company last year.
“Legislation will be brought forward this week to give the government powers... to take full public ownership of British Steel,” Starmer said in a speech aimed at resetting his leadership after local election losses.
Britain’s last factory capable of making steel from raw materials faced closure last year after its Chinese owner, Jingye, said the plant was no longer financially viable.
After talks with the company failed, the UK government passed emergency legislation to stop the plant’s blast furnaces from shutting down.
Since then, “it has not been possible to agree a commercial sale with the current owner,” the government said in a statement on Monday.
“The government believes introducing legislation to provide a route to public ownership is the appropriate next step,” it said, adding that the move remained subject to a public interest test.
Nationalisation would return British Steel to government ownership for the first time since 1988.
The government has viewed the possible closure of the plant in northern England as a risk to Britain’s long-term economic security amid the decline of the UK steel industry.
(With inputs from agencies)
