The Business Secretary informs that nationalisation might be a "likely option"

In an emergency debate concerning the future of British Steel's Scunthorpe plant, Business Secretary Jonathan Reynolds indicated that nationalisation may be a "likely option."

The government is pushing for a new law to prevent the impending closure of the Lincolnshire facility after its Chinese owner, Jingye, declared the plant "no longer financially sustainable." Reynolds described the legislation as a "proportionate and necessary measure," but Conservative opposition critiques the government for lacking an industrial strategy. The SNP and Plaid Cymru are also questioning the fate of other strategic assets, while the Liberal Democrats, Reform UK, and Green Party express support for nationalisation. Residents of Scunthorpe, nearly 200 miles from Westminster, assert that the steel plant is "massively important" and warn that the town could face severe decline without it. As MPs prepare for a vote on the next steps, a path toward nationalisation appears increasingly probable, as noted by BBC correspondent Laura Kuenssberg. Live Update: The powers sought by the Business Secretary are substantial. Reynolds compared them to the Civil Contingencies Act, which allows the government to respond to national emergencies, such as war. He assured MPs he does not intend to retain these powers any longer than necessary, a point likely to be challenged by opposition members throughout the day. Reynolds expressed the government's frustration with Jingye, noting ongoing strain in relations with the Chinese owners of British Steel.


He publicly stated that Jingye plans to refuse new material orders, halt operations at the blast furnaces, and shut down primary steelmaking in the UK, a claim the company has previously denied. When questioned about potential taxpayer costs associated with full nationalisation, Reynolds emphasized that the current market value of the company essentially stands at zero.
BBC