Starmer says ‘all options on table’ for Scunthorpe steelworks, as report claims nationalisation being seriously considered
Keir Starmer has said all options should remain on the table for the future of British Steel’s Scunthorpe plant – amid reports that the government is “seriously considering” nationalising the plant.
As PA Media reports, British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant and the government has been talking to the company’s Chinese owner Jingye. There have been calls for temporary nationalisation amid fears of thousands of job losses.
Asked about the Scunthorpe steelworks during his evidence to the liaison committee, Starmer said:
We will keep talking. We have made an offer, but all options are on the table in relation to Scunthorpe. I think it’s really important and we’re in the middle of those discussions.
Asked what he meant by “all options”, Starmer replied:
I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment.
I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.
But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.
According to a Bloomberg story by Ailbhe Rea and Alex Wickham, ministers are seriously considering nationalising the steelworks. They report:
Trade unions have warned that Jingye has canceled orders for iron ore, coking coal and other raw materials needed to make steel, raising concerns the Scunthorpe plant could effectively close within days without the fuel to run it. If the raw materials aren’t ordered this week, the blast furnaces risk being permanently shuttered, according to one person working in the industry.
Ministers are now examining putting in the order for the raw materials themselves to buy Scunthorpe time, the people [familiar with the matter] said, adding that the order could be made as soon as Wednesday. Nationalization looks like the only viable option if Britain wants to prevent itself from becoming the only G7 economy without a virgin steel industry, the industry figure said.
The Bloomberg report stresses that the nationalisation plans “haven’t been finalised and may not materialise”.
Reform UK has called for British Steel to be nationalised if necessary, and in the Commons yesterday at least one Conservative MP also backed this idea.
But Kemi Badenoch said today nationalisation “has got to be a last resort”.
Responding to the Bloomberg report, Plaid Cymru said it would be a “betrayal” of Wales for the government to nationalise the Scunthorpe steelworks when it did not do the same for Port Talbot. Plaid’s trade spokesperson Llinos Medi MP said:
When Plaid Cymru called for the nationalisation of Port Talbot to safeguard Welsh steel, Labour dismissed it without hesitation.
Now, as the UK Government considers nationalising British Steel in Scunthorpe, Labour’s quiet acceptance of a Tory plan that cost 2,500 jobs in Port Talbot is nothing short of a betrayal.
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Some of the earlier posts covering Keir Starmer’s evidence to the Commons liaison committee have now been beefed up with more direct quotes. But you may need to refresh the page to get them to show up.