UK lawmakers approve rescue of British Steel in emergency parliamentary session

In a rare emergency session on Saturday, UK lawmakers cut short their Easter break to pass legislation rescuing the country’s last fully integrated steel plant from imminent closure.
Prime Minister Keir Starmer called the extraordinary session — only the sixth of its kind since World War II — to pass a bill aimed at halting plans by British Steel’s Chinese owner, Jingye Group, to shutter the two blast furnaces at the Scunthorpe plant in northern England.
The legislation grants sweeping powers to Business Secretary Jonathan Reynolds, enabling him to direct British Steel’s board, secure pay for the plant’s 3,000 workers, and order raw materials needed to keep the furnaces running. Without immediate action, the blast furnaces — critical for producing virgin steel — risked a permanent shutdown due to canceled orders and lack of essential inputs like iron pellets and coking coal.
Jingye has argued the plant is losing £700,000 ($910,000) daily, citing global market pressures and rising environmental compliance costs. The company said recent tariffs from U.S. President Donald Trump — including a 25% levy on foreign steel — have worsened the situation.
Following Parliament’s approval of the rescue plan, Starmer traveled to Scunthorpe to meet with steelworkers, whose jobs — and the town’s 150-year-old steelmaking legacy — now appear safe, at least for the short term.
“You and your colleagues for years have been the backbone of British Steel,” Starmer told workers. “It’s your jobs, your lives, your communities, your families.”
Relief swept the town, even spilling into Scunthorpe United’s soccer match, where steelworkers were welcomed on the field with cheers. The local club’s nickname, “The Iron,” stands as a tribute to the town’s industrial roots.
The blast furnaces are not just vital to Scunthorpe — they represent the UK’s last capacity to produce steel from raw materials. Without them, the nation would become the only G7 country unable to make its own virgin steel, leaving industries like defense, infrastructure, and rail reliant on foreign sources.
“We 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,” Reynolds said in Parliament. He accused Jingye of making “excessive” demands during negotiations and warned that without intervention, the company was on track to “irrevocably and unilaterally” shut down primary steelmaking.
Though the new law does not nationalize British Steel, Reynolds acknowledged that a future transfer of ownership to the state remains on the table. It also raises uncertainty over Jingye’s role going forward. Should the company fail to comply with the law, it and its executives could face legal action.
British Steel, acquired by Jingye in 2020, has yet to comment on how it will respond to the government’s move.