UK Acts to Prevent British Steel Plant Closure

The UK government has convened an emergency parliamentary session to debate a bill aimed at preventing the closure of British Steel's Scunthorpe plant by its Chinese owners, Jingye Group. Business Secretary Jonathan Reynolds has emphasized the need for swift legislative action to keep the plant's blast furnaces operational by allowing the government to direct the company's board and order raw materials. Although the bill stops short of nationalization, it opens the possibility of government control and potential co-investment with private partners. The move is deemed necessary to protect jobs and national security, as well as to ensure the UK maintains its capacity to produce steel from raw materials. The debate comes amid financial challenges for British Steel, including losses of £700,000 a day, and recent US tariffs on steel imports. Prime Minister Keir Starmer has highlighted the strategic importance of the plant, noting that its future 'hangs in the balance.'