MPs debating emergency law to take control of British Steel – live
Government publishes steel industry bill to be debated
The government has published its steel industry (special measures) bill before Saturday’s sitting of parliament.
The 10-page bill allows the government to instruct steel companies to keep assets running, and to take over those assets if they fail to comply with those instructions.
The PA news agency reports that it also provides for a compensation scheme for costs incurred by a company following the government’s instructions, and criminal sanctions for executives who disregard them.
Key events
Jonathan Reynolds said Jingye wanted the government to give them “hundreds of millions of pounds” which could have been transferred to China along with British Steel assets.
The business secretary said:
The British government offered to purchase raw materials in a way that would have ensured no losses whatsoever for Jingye in maintaining the blast furnaces for a period of time.
A counter offer was instead made by Jingye to transfer hundreds of millions of pounds to them, without any conditions to stop that money and potentially other assets being immediately transferred to China.
They also refused a condition to keep the blast furnaces maintained and in good working order.”
Business secretary says Jingye wanted ‘excessive amount’ from the government
Jonathan Reynolds said the government had been negotiating with Jingye in good faith, but said the Chinese company wanted an “excessive amount” from the government.
The PA news agency reports that the business secretary said:
As honourable members will know, since taking office this government has been negotiating in good faith with British Steel’s owners Jingye.
We have worked tirelessly to find a way forward, making a generous offer of support to British Steel that included sensible, common sense conditions to protect the workforce, to protect taxpayers’ money and create a commercially viable company for the future.
Despite our offer to Jingye being substantial, they wanted much more. Frankly, an excessive amount. We did however remain committed to negotiation.
But over the last few days it became clear that the intention of Jingye was to refuse to purchase sufficient raw material to keep the blast furnaces running, in fact, their intention was to cancel and refuse to pay for existing orders.
The company would therefore have irrevocably and unilaterally closed down primary steel making at British Steel.”
Earlier Reynolds opened the second reading of the steel industry (special measures) bill, by saying:
We meet under exceptional circumstances, to take exceptional action, in what are exceptional times.
Our request to recall parliament was not one we have made lightly, and I am grateful, genuinely grateful to honourable members on all sides of this house for their cooperation and for being here today as we seek to pass emergency legislation that is unequivocally in our national interest.”
Shadow Cabinet Office minister, Alex Burghart, has said the government could receive “far-reaching powers not seen in legislation really in the past 40 years”.
Speaking as acting shadow Commons leader, Burghart told MPs:
I’m sure we’re going to hear a lot about urgency today, moving at pace and the rest of it.
But the truth is that the government has made a total pig’s breakfast of this whole arrangement.
The fact of the matter is, anyone who has been paying any attention to this story over the past few months has known this was coming down the track.”
After noise from Labour benches, speaker Sir Lindsay Hoyle said:
We’ve come back, it’s Saturday. It doesn’t mean it’s crackerjack day. We’re going to listen.”
Burghart later continued:
The fact of the matter is, the government as ever when negotiating makes bad deals for Britain, and it is making a bad deal.”
He added that “far reaching powers are being given to the government, far reaching powers not seen in legislation really in the past 40 years”.
Business secretary, Jonathan Reynolds, tells the Commons that the decision to recall parliament “wasn’t taken lightly”. He says MPs are meeting under “exceptional circumstances, to take exceptional action, in what are exceptional times”.
Commons leader Lucy Powell has said Saturday’s recall of parliament is aimed at “saving thousands of jobs and securing our domestic production of virgin steel”.
She thanked speaker Sir Lindsay Hoyle for allowing the recall and added:
We meet in these special circumstances because the government needs to act decisively, at pace and with urgency to ensure that the steelworks, blast furnaces of British Steel are maintained and kept going, saving thousands of jobs and securing our domestic production of virgin steel.”
Government would pay Jingye nothing in the event of nationalisation, business secretary suggests
Conservative MP David Davis says the current owners are trying to force the government into nationalisation.
He asks if that happens: “will the business secretary refuse to pay more than a penny?”
Jonathan Reynolds confirms the government would not pay more than the market value, which is zero.
Lucy Powell, leader of the house, says the Commons needs to act “decisively” and “at pace” to ensure furnaces are kept going.
Alex Burghart, acting shadow leader of the house, says the government had “made a total pig’s breakfast” of the situation with British Steel. This gets a big reaction and the speaker has to settle the Commons.
MPs begin debate in House of Commons
MPs have begun debating the government’s steel industry (special measures) bill, kicking off the first recalled session of parliament on a Saturday since 1982.
Lucy Powell, leader of the house, has opened the debate by thanking all involved in facilitating a recall of parliament and outlining the schedule.
MPs are due to sit in the House of Commons now to debate the steel industry (special measures) bill. Here is a photograph of the prime minister, Keir Starmer, leaving No 10 this morning:
There is a live stream from the Commons at the top of this blog. You may have to refresh the page to view it.
Richard Tice, deputy leader of the Reform party has said he will be joining the government debate over British Steel.
In a post on X, the Boston and Skegness MP wrote:
We urge the government to do the job properly and fully nationalise British Steel this weekend. Don’t do half a job.
This can be a great opportunity done well. Let’s go for it.”
In a further video he said:
We will be urging the government to show some courage, have some mettle and do the job properly.”
If you want to read the 10-page steel industry (special measures) bill, you can access it here (nb: opens as pdf).
Government publishes steel industry bill to be debated
The government has published its steel industry (special measures) bill before Saturday’s sitting of parliament.
The 10-page bill allows the government to instruct steel companies to keep assets running, and to take over those assets if they fail to comply with those instructions.
The PA news agency reports that it also provides for a compensation scheme for costs incurred by a company following the government’s instructions, and criminal sanctions for executives who disregard them.
Redcar MP Anna Turley is travelling down to Westminster from North Yorkshire to debate the bill on British Steel, reports the PA news agency.
In a post on X, Turley wrote:
On the train down to vote for something that should have been done back in 2015 for the steelworkers and families of Redcar.
So pleased to have a government that believes in steel and believes in our industrial future.”
Turley MP also posted a video message saying primary steel making in Scunthorpe is “critical to the UK’s national security and our economic resilience.”
If you are just joining us now, here’s what to expect today:
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MPs will vote on whether to grant the government control of British Steel as emergency legislation paving the way for nationalisation comes before parliament.
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The House of Commons will sit from 11am
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The House of Lords will sit from 12pm
Rowena Mason
British Steel makes the vast majority of UK rail track and the government has been seeking a deal to keep the plant open.
The industry will be hit by a 25% tariff on steel exports to the US imposed by Donald Trump but the government has insisted British Steel’s problems are not related to this.
Talks with Jingye’s chair, Li Ganpo, had dragged on for three days after the government offered to buy raw materials to keep the plant running for the next few weeks while trying to find a longer-term solution.
Scunthorpe is the last remaining steelworks capable of making steel from iron ore and so is seen by some people as strategically important for the UK. However, Jingye last month said it planned to close the plant’s two blast furnaces, putting 2,700 jobs at risk. It has since refused to pay for new raw materials, with coal and iron ore deliveries to Immingham port not yet paid for.
The government had offered £500m in financial support to switch the blast furnaces to cleaner electric arc furnaces, but Jingye had requested much more.
Talks this week are thought to have stalled when Jingye balked at the conditions attached to the offer to pay for new raw materials. The delays in reaching an agreement had caused increasing alarm among workers, who feared at least one blast furnace might be forced to close as soon as next week, leading to job losses.
Scunthorpe’s blast furnaces would have closed within days if the government had not recalled parliament to pass emergency legislation, the industry minister has said.
Sarah Jones told GB News:
Without the raw materials, it’s only a matter of time before the blast furnace is inoperable.”
Asked whether this would have happened within days, she said: “Yes.”
