British Business Secretary Jonathan Reynolds has indicated that nationalizing British Steel is “likely” as the government responds to ongoing issues with the company’s Chinese owners. His comments come after the UK government took control of the Scunthorpe plant, the last facility in the UK capable of producing virgin steel, following the breakdown of discussions with Jingye, the Chinese company that owns it.
In a statement to reporters in Scunthorpe, Reynolds emphasized the urgency of the situation, saying, “What we are now going to do, having secured both control of the site and the supply of raw materials, is work on the future.” He noted that while addressing ownership is critical, collaboration with private sector partners remains a goal.
Reynolds previously asserted he would reconsider any future involvement of Chinese firms in the steel sector, citing concerns related to national interest. Although he acknowledged the importance of maintaining a pragmatic relationship with China, he emphasized that steel is a sensitive sector.
The recent turbulence has led to accusations from opposition politicians that China has engaged in tactics to increase dependency on its steel products. Veteran Tory MP Sir Iain Duncan Smith has called for the government to define strategic industries and prevent Chinese investments in these areas. Liberal Democrats’ foreign affairs spokesperson Calum Miller commented that reverting to Chinese ownership would be akin to leaving one’s home unsecured after a previous robbery.
Reynolds’s remarks came after a poll indicated public support for nationalization is high, with 61% backing the government’s decision. Amid these developments, industry Minister Sarah Jones reiterated that the government is exploring options, suggesting that a national solution might be necessary if no private sector alternatives materialize.
As the situation evolves, the long-term future of British Steel remains uncertain, especially in light of the recent challenges facing the UK steel industry and the broader implications for its economic landscape.
Credit: Sky News
