British Steel: Call for Nationalisation Amid Ownership Stalemate
A prominent Labour MP has called for British Steel to be brought into public ownership by the summer, should ongoing negotiations with its Chinese proprietor, Jingye, not reach a swift resolution. Nic Dakin, the MP for Scunthorpe, described nationalisation as "the best outcome" for the company to secure vital investment and a clear path forward, marking a year since the government took control of the plant to prevent the closure of its last two remaining blast furnaces.
The government's intervention on 12th April 2025 protected 2,700 jobs, representing approximately three-quarters of British Steel's workforce. Industry Minister Chris McDonald affirmed the government's commitment to securing a deal, highlighting British Steel's "vital importance to the country". However, Mr Dakin expressed disappointment that the ownership issue remains unresolved, stressing the unsustainability of the current arrangement where the government runs the company while Jingye retains ownership.
The Cost of Uncertainty and National Security Concerns
The National Audit Office estimates that British Steel is currently costing the taxpayer approximately £1.3 million per day, a figure Mr Dakin believes underscores the urgent need for a long-term strategy. "We need the owner and the controller to be the same entity so we can sort out a business plan and have the investment into the business," he stated.
Beyond economic concerns, Mr Dakin emphasised the critical role of UK steel production in national security, particularly given the prevailing geopolitical landscape. Steelworker Thomas Smith, branch secretary for the Community Union, echoed calls for nationalisation, citing the need for "security" for workers and the broader recognition that "the whole nation realises that we need the steel industry."
While recent significant contracts, including a railway project in Turkey and a £500m deal with Network Rail, offer a glimmer of hope, analysts like Jonathon Carruthers-Green suggest these may not be enough to ensure the company's sustained future. Minister McDonald acknowledged a "strong future" for the UK steel industry but provided no definitive timetable for resolving British Steel's ownership, stating that "no decision's been made on whether to nationalise the company." He maintained that a resolution with Jingye would be the "quicker and cheaper route" to addressing the issue.
