The UK government has intervened to secure the future of the British Steel plant in Scunthorpe. The Chancellor stressed the necessity of this action to avoid ‘throwing good money after bad’. This move comes following the inception of the Steel Industry (Special Measures) Act. This Act empowers the Government to ensure the continual operations of steel companies in England, whilst imposing penalties on executives who fail to comply.
Rachel Reeves emphasised the Government’s role in sculpting the plant’s future during her visit to the site, mentioning that discussions with the previous owner, Jingye, had not been fruitful. Jingye, the Chinese firm, had formerly contemplated shutting down the blast furnaces which stimulated Government intervention to ensure the plant’s survival.
The recent unprecedented recall of Parliament for the first weekend session since the Falklands conflict, has consequently led to immediate legislation to secure the steelworks. The move has received a warm welcome by unions. Alun Davies from the Community trade union lauded the Government’s dedication to the steel industry.
In response to concerns about overseas investment, Conservative leader Kemi Badenoch has advocated for careful examination of Chinese involvement in national infrastructure and strategic planning in dealings with China.
A note from British Steel bosses and union leaders expressed their appreciation towards the Government and local community for their assistance and reaffirmed their belief in the strategic importance of the plant to the UK’s infrastructure and economy. They remain optimistic about the future of steelmaking in Scunthorpe, proclaiming it to be promising.
