The Steel Industry (Special Measures) Act has been passed to essentially give the government control of the company
The emergency British Steel bill has been enacted, being passed with the King’s approval in just six and a half hours on Friday.
The bill was deemed necessary to prevent closure after the former company, Jingye, admitted it was struggling.
Crucial to Britain’s infrastructure
Jingye bought British Steel in 2020 but recently announced that they were losing money at a rate of roughly £700,000 per day.
The British Steel bill now gives control to business secretary Jonathan Reynolds, who now has control of the company’s board and staff.
The steelworks are located in Scunthorpe, and with the bill in place, the future of the works and the steel they produce are no longer uncertain.
John Foster, chief policy and campaigns officer at CBI, said: “The government’s decision to take control of British Steel is a necessary outcome of last resort needed to preserve the UK’s primary steel production capability.
“With the government’s Growth Mission focused on delivering big infrastructure projects to drive economic growth, it is vital the UK doesn’t lose vital steelmaking capabilities. Looking beyond today, securing a sustainable future of steelmaking must also ensure that it is supported in the transition towards electric.
“In a period of global instability, it is increasingly important for our resilience that we have the capability within the UK to provide the steel that we need and that isn’t subject to the volatile backdrop provided by tariffs.”
Julia Pyke, joint-managing director at Sizewell C, said: “Sizewell C welcomes the government’s new steel strategy and the creation of the Steel Council, which will provide a vital boost to British industry.
“We are a proud signatory of the UK Steel Charter and remain committed to maximising UK steel throughout our construction plans, including a £700m steel pipeline over the next decade. Supporting strategic industries like British steel is vital for protecting jobs, strengthening communities, and ensuring the resilience of the UK economy.”
The PM commented on the British Steel bill
On Saturday, British prime minister Keir Starmer, said: “Today, my government has stepped in to save British Steel. We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry. Delivering security and renewal for working people is at the heart of my Plan for Change.
“This government is turning the page on a decade of decline, where our manufacturing heartlands were hollowed out by the previous government.
“In recent weeks alone, we have announced the expansion of Heathrow airport and the building of the biggest theme park in Europe in Bedford. We are reforming our planning rules to build 1.5m homes, and the infrastructure the nation desperately needs. New roads, railways, schools, hospitals, grids and reservoirs. British steel will be the backbone as we get Britain building once more.
“This is a government of industry. That’s why we’ve secured a better deal for the workers of Port Talbot. It’s why we fought to secure the future of Harland & Wolff. It’s why we’ve pledged £200m to Grangemouth. Our industry is the pride of our history – and I want it to be our future too.
“A secure future. A Britain rebuilt with British steel, in the national interest.”
Sean Keyes, CEO of Sutcliffe, said: “With the global steel industry facing ongoing pressures and slow demand after years of turmoil, Donald Trump’s 25% tariff on UK steel presents a significant hurdle for Labour’s plans to grow the economy as this will surely, albeit temporarily slow down demand for UK steel work for customers of British steel in the US. Whether this damages the construction industry in the UK and impacts the ambitious goal of constructing 1.5 million homes by the end of Labour’s initial term is uncertain and unwelcome.
“This may push up steel work costs in the UK. Despite my long standing view that building 1.5 million homes in five years is overly ambitious—with a more realistic goal of constructing 300,000 homes in a single year—this new tariff only creates a further barrier to the existing shortfall. By driving up construction costs and potentially delaying critical housing projects, it makes an already unrealistic target even more unattainable. Alongside existing challenges such as planning regulations, limited land availability, and a shortage of skilled labour, these tariffs threaten to strain the UK’s historic special relationship with the US and further harm an already struggling steel industry here in the UK, only now its impact will be felt even more widely at home.”
