UK government safeguarding British steel industry

In a decisive move to protect the nation's steel production capabilities, the UK government has enacted the Steel Industry (Special Measures) Act 2025, granting emergency powers to intervene in the operations of steel manufacturers. This legislation comes in response to the potential closure of British Steel's Scunthorpe plant, which threatened the country's primary steel production and thousands of jobs.​

The crisis emerged when Jingye Group, the Chinese owner of British Steel, announced plans to halt operations at the Scunthorpe facility due to financial challenges. The plant houses the UK's only two remaining blast furnaces, and their shutdown would have marked the end of primary steel production in Britain. Recognizing the urgency, the government recalled Parliament from its Easter recess for an emergency session on April 12, during which the bill was swiftly passed and received royal assent the same day. 

Under the new law, the Secretary of State for Business and Trade is empowered to direct the operations of steel manufacturers to ensure the continued and safe use of critical assets. This includes the authority to take control of facilities if owners fail to comply with government directives. Non-compliance is now a criminal offense, punishable by up to two years in prison. ​

Prime Minister Keir Starmer emphasized the significance of the legislation, stating, "We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry." Business Secretary Jonathan Reynolds added that the government "could not, will not and never will stand idly by while heat seeps from the UK's remaining blast furnaces without any planning, any due process or any respect for the consequences." 

The enactment of this law has halted the proposed redundancies at British Steel, safeguarding approximately 2,700 jobs. However, the government's intervention has sparked political debate. Opposition leader Kemi Badenoch criticized the move, suggesting that the government should have negotiated with Jingye Group to prevent the crisis. She accused the administration of allowing unions to dictate policy. Additionally, politicians from Wales expressed concerns over perceived double standards, noting the lack of similar intervention to save steel manufacturing at Port Talbot Steelworks. ​

As the UK navigates economic challenges, including increased borrowing and global trade tensions, the government's swift action to preserve its steel industry underscores a commitment to maintaining critical infrastructure and employment. The long-term implications of this intervention remain to be seen, particularly regarding potential nationalization and the future of the UK's industrial strategy.​