British Steel bill to save Scunthorpe plant becomes law as officials stand by to take control

Summary

A bill designed to save British Steel's Scunthorpe plant has been approved by Parliament and granted Royal Assent, meaning it becomes law
UK government officials are standing by to take control of the site, the BBC understands
In Scunthorpe, steelworkers kept furnaces burning today as their future now seems more certain
Nationalisation looks like the increasingly inevitable next step, writes the BBC's Chris Mason
"Today, my government has stepped in to save British Steel", Starmer says, adding he is "turning the page on a decade of decline"

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PM Keir Starmer meets British Steel workers

Live Reporting

Edited by Matt Spivey, with Oli Constable reporting from Scunthorpe

Chinese company that bought British Steel says it's losing £700,000 a daypublished at 15:59 British Summer Time 11 April
Image source, Reuters
Jingye, the Chinese company which bought British Steel in 2020, says it has been suffering financial losses of around £700,000 a day.
A mandatory 45-day consultation on plans to shed jobs began last month, blaming "highly challenging" market conditions, tariffs and costs associated with lower-carbon production techniques.
Industry body UK Steel has warned that ending production at the Scunthorpe site, which employs 2,700 people, would see the UK would lose vital steelmaking capabilities.
'All options remain on the table': What has Downing Street said?published at 15:54 British Summer Time 11 April
A Downing Street spokesperson says there is a "bright future for steel in the UK" and "all options remain on the table", as ministers are seeking immediate powers to control the Scunthorpe site.
They add that a Steel Industry (Special Measures) Bill would allow the government to "preserve capability and ensure public safety" at the site.
"It also ensures all options remain viable for the future of the plant and the livelihoods it supports," the spokesperson added.
Concerns over 'irresponsible' running of the plantpublished at 15:50 British Summer Time 11 April
Zoe Conway
Employment correspondent
The BBC understands from sources that the business secretary was growing increasingly concerned that the plant was being run ''irresponsibly'' by the plant's Chinese, owners Jingye.
It's understood this is one of the reasons why the government has decided to take control of the plant.
The GMB trade union has also raised concerns to the BBC about the way the company was operating the plant.
The BBC understands that at tomorrow's sitting the government is looking to get Parliament to give it the power to take control of the site so that it can ensure it has the raw materials it needs to keep going. At a second stage, after Easter, parliament could then be asked to give the government the power to nationalise the company.
The BBC reported earlier this week that the government had offered to pay for the coal necessary to keep the blast furnaces going. It's understood that the offer, which was put in writing, was considered by the Chinese owners.
Why is parliament being recalled?published at 15:48 British Summer Time 11 April
Parliament is being recalled on Saturday for an emergency debate on the future of British Steel's plant in Scunthorpe.
A government source said it was looking "to take control"' of the company, after its Chinese owner Jingye said its blast furnaces were "no longer financially sustainable".
Politicians left Westminster for their Easter break on Tuesday, and were not due to return until 22 April.
A meeting between government officials and Jingye on the future of the UK's last virgin steel plant was held virtually on Thursday, but sources said issues under discussion remained unresolved.
Government sources have told the BBC production could cease at the plant within weeks if the raw materials used to produce steel in two blast furnaces were not paid for soon.
Andy Prendergast, national secretary of the GMB union said: "We are currently running against the clock in terms of the blast furnaces. If they go off, they are gone."
Parliament recalled to debate emergency law to save British Steelpublished at 15:46 British Summer Time 11 April
Matt Spivey
Live editor
Good afternoon, Parliament will be recalled to debate an emergency law to save British Steel's plant in Scunthorpe from imminent closure.
Talks have been taking place this week to keep production going at the firm, after its Chinese owner said its blast furnaces are "no longer financially sustainable".
Downing Street says legislation would give ministers power to "protect" the site, which employs 2,700 people.
The BBC understands that ministers are seeking immediate powers to control the site so it can ensure it has enough raw materials to keep going.
Stay with us for the latest developments.