The UK government is considering nationalising British Steel as concerns grow that its Scunthorpe blast furnaces could soon run out of raw materials, threatening the loss of 2,700 jobs. Chancellor Rachel Reeves has assured trade unions that nationalisation remains a possible option, emphasising the strategic importance of the steel industry.
Owned by Chinese company Jingye since 2020, British Steel claims it is losing £700,000 daily and says the Scunthorpe furnaces are no longer financially viable. Jingye has reportedly cancelled key raw material orders, raising fears the furnaces may be shut down within days.
The government has offered £500 million to support a transition to electric arc furnaces, but the company has rejected the proposal. Prime Minister Keir Starmer told MPs that “all options remain on the table” and pledged to safeguard the future of steel production in the UK.
Tensions are rising as the issue coincides with the race for Lincolnshire’s first directly elected mayor, with the election set for 1 May. Reform UK leader Nigel Farage, during a visit to the site, called for the steelworks to be taken into public ownership immediately.
Conservative MP Martin Vickers confirmed that raw material deliveries scheduled for mid-May have been cancelled. He urged temporary nationalisation to stabilise the plant and assure customers like Network Rail, which sources 95% of its rail from Scunthorpe.
Business Minister Sarah Jones reiterated the government’s preference for a private-sector-led solution but confirmed that nationalisation remains an option if needed. She called on British Steel to accept the government’s financial support package and meet the attached conditions.
While the Conservatives view nationalising as a last resort, other parties, including the Liberal Democrats and Greens, are pushing for decisive action to save jobs and preserve the country’s steelmaking capacity.
