Terror Law Twist? Nationalisation of British Steel as Last Resort

As the Government continues to negotiate a lifeline with British Steel’s proprietors, Jingye Group, whispers of a ‘terror law’ being used for nationalisation have emerged. The future of British Steel’s Scunthorpe workforce hangs in the balance, following news of potential closures of its blast furnaces and broader steelmaking operations within a scant couple of months. As talks between Jingye Group and the Government seemingly hit a brick wall, a £500m governmental support offer remains untouched. The UK’s largest steelworkers’ union, Community, has championed nationalisation should negotiations fail. National newspaper The Daily Telegraph suggests that the Government may use the Civil Contingencies Act 2004 to expedite nationalisation. This legislation grants ministers extraordinary powers in times of national crises, such as war. Scunthorpe’s blast furnaces, the only UK facility capable of producing virgin or primary steel, are seen by many in the political arena as a crucial cog in national security. Industry Minister Sarah Jones expressed her preference for resumed talks with Jingye but did not rule out nationalisation. The support offer currently on the table is contingent on British Steel’s proposed shift to greener, more job-efficient electric arc furnaces (EAFs). The Government’s British Industry Supercharger package, launching in April, is expected to bring UK industries’ energy costs, including steel, in line with other major economies. The consultation regarding potential closures at the Scunthorpe site continues.