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Parliament Seizes Control of British Steel to Avert Closure and Save Thousands of Jobs
In a dramatic move, the UK Parliament voted Saturday to seize control of the Chinese-owned British Steel plant in Scunthorpe, preventing its closure and saving nearly 2,700 jobs. This extraordinary intervention marks only the sixth emergency session of Parliament since World War II.
Negotiations between the British government and Jingye, the Chinese firm that owns British Steel, had broken down, prompting Prime Minister Keir Starmer to call the emergency session. The government had reportedly offered to purchase raw materials for the plant’s blast furnaces, but Jingye’s demands for government funds were deemed excessive. Facing the imminent shutdown of the plant and the end of steel production in the UK, Parliament acted swiftly.
The emergency legislation, passed and granted royal assent by King Charles in a single day, empowers Business Secretary Jonathan Reynolds to take control of British Steel and ensure continued operations. The law also includes provisions for the arrest and imprisonment of anyone interfering with the government’s control of the plant.
Following the successful vote, Prime Minister Starmer traveled to Scunthorpe to address the steelworkers, praising them as the “backbone of British Steel.” The Scunthorpe plant is the UK’s last remaining producer of virgin steel.
According to Business Secretary Reynolds, Jingye had planned to halt raw material purchases for the blast furnaces and cancel existing orders without refunds. The government’s intervention ensures the continued operation of this vital industry for the United Kingdom.