Connect with us

Published

on

The owner of Butlin’s is preparing to put it up for sale amid a boom in British staycations, sparking a potential bidding frenzy for the country’s best-known chain of holiday camps.

Sky News has learnt that Bourne Leisure, which also owns Haven and Warner Leisure Hotels, recently picked investment bankers to conduct an auction of Butlin’s next year.

The move comes less than 12 months since privately owned Bourne Leisure sold a majority stake to Blackstone, the private equity giant, in a deal valuing the group at about £3bn.

Butlin’s likely valuation in a sale was unclear this weekend, but bankers and private equity investors said there would be “a deluge” of interest in acquiring the brand and its three sites.

The chain was established in 1936 by Billy Butlin, who – according to its official history – “felt sorry for families staying in drab guest-houses with nothing much to do” during a trip to Barry Island.

He acquired a plot of land in Skegness, Lincolnshire, and opened the first eponymous resort, which is among the three that still trade today.

More from Business

In its heyday, Butlin’s operated from nine sites across the UK, entertaining a million holidaymakers each year with knobbly knees competitions and glamorous granny contests.

Hundreds of staff across its resorts became known as Redcoats.

The brand became such an entrenched part of Britain’s popular consciousness that it provided the inspiration for Hi-de-Hi!, the long-running BBC sitcom.

Its fortunes waned with the explosive growth of opportunities for Britons to holiday abroad, but has enjoyed something of a resurgence in recent times.

Butlin’s other sites today are at Minehead in Somerset and Bognor Regis, the traditional seaside town close to the South Downs National Park.

The pandemic has triggered rapid growth in the number of staycations, paving the way for a string of deals in the sector.

Earlier this month, Sun Communities, a New York-listed real estate investment trust, paid £950m for Park Holidays, substantial exceeding its owners’ initial price expectations.

The Canadian owner of Parkdean Resorts, a bigger rival to Park Holidays by number of sites, has instructed bankers at Morgan Stanley to prepare a review of options that most observers expect to result in a sale next year.

Butlins
Image:
Butlin’s likely valuation in a sale was unclear this weekend, but bankers and private equity investors said there would be ‘a deluge’ of interest

Other recent deals in the sector have included the private equity firm CVC Capital Partners buying Away Resorts – the owner of well-known holiday parks such as Whitecliff Bay on the Isle of Wight and Sandy Balls in the New Forest.

CVC subsequently combined Away Resorts with Aria, another operator.

Bourne Leisure, which is run by chief executive Paul Flaum, is said to have decided that Butlin’s is sub-scale and therefore non-core to its growth plans.

Rothschild is understood to have been retained by Blackstone and Bourne to oversee the Butlin’s sale.

The sector’s other big players are expected to explore offers for Butlin’s, although it may end up being sold on a standalone basis to a financial buyer.

Blackstone declined to comment on Saturday.

Continue Reading

Business

MPs to debate emergency law to keep British Steel open as prime minister warns national security ‘on the line’

Published

on

By

MPs to debate emergency legislation to keep British Steel open as 'security is on the line'

MPs will today debate emergency laws to save British Steel after the prime minister warned the country’s “economic and national security is on the line”.

Sir Keir Starmer said the future of the company’s Scunthorpe plant – which employs about 3,500 people – “hangs in the balance” after its owner said the cost of running it was unsustainable.

The prime minister said legislation would be passed in one day to allow the government to “take control of the plant and preserve all viable options”.

Follow latest: Live politics updates

MPs and Lords are being summoned from their Easter recess to debate the move and will sit from 11am.

The last time parliament was recalled was on 18 August 2021 to debate the situation in Afghanistan.

The government has been considering nationalising British Steel after Jingye, the Chinese owner, cancelled future orders for iron ore, coal and other raw materials needed to keep the blast furnaces running.

More from Politics

The furnaces are the last in the UK capable of making virgin steel.

Jingye last month rejected a £500m state rescue package – raising fresh doubts about the Lincolnshire plant and fears it could close in the coming days.

The steel from the plant is used in the rail network and the construction and automotive industries. Without it, Britain would be reliant on imports at a time of trade wars and geopolitical instability.

Please use Chrome browser for a more accessible video player

Inside the UK’s last blast furnaces

In a statement on Friday, Sir Keir said: “I will always act in the national interest to protect British jobs and British workers.

“This afternoon, the future of British Steel hangs in the balance. Jobs, investment, growth, our economic and national security are all on the line.”

The prime minister said steel was “part of our national story, part of the pride and heritage of this nation” and “essential for our future”.

He said the emergency law would give the business secretary powers to do “everything possible to stop the closure of these blast furnaces”.

This includes the power to direct the company’s board and workforce. It will also ensure it can order the raw materials to keep the furnaces running and ensure staff are paid.

A general view shows British Steel's Scunthorpe plant.
Pic Reuters
Image:
The Scunthorpe plant is the last in the UK that can make virgin steel. Pic: Reuters

One of the two blast furnaces at British Steel's Scunthorpe operation
Image:
One of the two blast furnaces at Scunthorpe

Chancellor Rachel Reeves said the government was “taking action to save British steel production and protect British jobs”, while Business Secretary Jonathan Reynolds said the owner had left the government with “no choice”.

Mr Reynolds said Jingye had confirmed plans to close the Scunthorpe furnaces immediately despite months of talks and the offer of £500m of co-investment.

The company said it had invested £1.2bn since taking over in 2020, but that the plant is losing £700,000 a day.

Read more:
Govt intervention in British Steel ‘a remarkable step’ – analysis

Please use Chrome browser for a more accessible video player

What will happen with British Steel?

Conservative leader Kemi Badenoch said the government had landed itself in a “steel crisis entirely of their own making”.

She said when she was business secretary, she had negotiated a plan with British Steel “to limit job losses and keep the plant running”.

Ms Badenoch said the government had “bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable”.

She added: “Keir Starmer should have seen this coming. But instead of addressing it earlier in the week when parliament was sitting, their incompetence has led to a last-minute recall of parliament.”

The Unite union said the prime minister’s recalling of parliament was “absolutely the right thing to do to begin the process of nationalisation”.

While the government hasn’t confirmed those plans, the chancellor also said earlier this week that “all options” are on the table.

Sky News understands accountancy firm EY is being lined up to play a role in a nationalisation process.

The government’s intervention over British Steel comes six months after the last blast furnace was closed at Port Talbot in Wales.

Plaid Cymru has questioned why the government didn’t take similar action there.

The party’s Westminster leader, Liz Saville Roberts, said: “Parliament is being recalled to debate the nationalisation of Scunthorpe steelworks.

“But when global market forces devastated Welsh livelihoods in Port Talbot, Labour dismissed Plaid Cymru’s calls for nationalisation as ‘pipe dreams’.”

Continue Reading

Business

MPs to debate emergency legislation to keep British Steel open as ‘security is on the line’

Published

on

By

MPs to debate emergency legislation to keep British Steel open as 'security is on the line'

Sir Keir Starmer has said the government will debate emergency legislation on Saturday to keep the British Steel plant in Scunthorpe open as “our economic and national security is on the line”.

The prime minister added that “the future of British Steel hangs in the balance” and legislation will be passed tomorrow to allow the government to “take control of the plant and preserve all viable options” for it.

MPs and Lords are being summoned back from Easter recess to Westminster to debate draft legislation on the plans, and will sit from 11am on Saturday.

The government had been actively considering nationalising British Steel after Jingye, its Chinese owner in Scunthorpe, cancelled future orders for the iron ore, coal and other raw materials needed to keep the last blast furnaces in the UK running.

Follow latest: Live politics updates

Jingye also rejected a £500m state rescue package in a move which raised fresh doubts about the 3,500 jobs at the Lincolnshire plant – with it feared the site would be forced to close as early as next week.

The steel from the plant is used in the rail network and the construction and automotive industries. Without the plant, Britain would be reliant on imports at a time of trade wars and geopolitical instability.

More from Politics

In a short statement delivered from Downing Street this evening, Sir Keir said: “I will always act in the national interest to protect British jobs and British workers.

“This afternoon, the future of British Steel hangs in the balance.

“Jobs, investment, growth, our economic and national security are all on the line.”

One of the two blast furnaces at British Steel's Scunthorpe operation
Image:
One of the two blast furnaces at British Steel’s Scunthorpe operation

‘A new era of global instability’

The prime minister added he has been to the site in Scunthorpe and met the steelworkers there.

He said he understands how “important steel is” to the “whole country” and continued: “It’s part of our national story, Part of the pride and heritage of this nation.

“And I’ll tell you this, it is essential for our future.

“[The government’s] plan for change means we need more steel, not less. So we will act with urgency… This situation and our response is unique.

“While it is true that we’re facing a new era of global instability, our concerns about this plant and negotiations to protect it have been running for years.”

Sir Keir said parliament will be recalled for a “Saturday sitting” and will “pass emergency legislation” in “one day” to give the business secretary the powers to do “everything possible to stop the closure of these blast furnaces”.

He added: “We will keep all options on the table. Our future is in our hands.”

Chancellor Rachel Reeves posted on X after the statement that the government is “taking action to save British steel production and protect British jobs”.

“We are securing Britain’s future,” she added.

Please use Chrome browser for a more accessible video player

Inside the UK’s last blast furnaces

Tory leader criticises Starmer

Business Secretary Jonathan Reynolds said this evening the Chinese owner of British steel has left the government with “no choice” but to act.

Jingye had confirmed plans to close the blast furnaces at Scunthorpe immediately despite months of talks and the offer of £500m of co-investment from the UK government, Mr Reynolds added in a statement.

It came as Conservative leader Kemi Badenoch said the government has landed itself in a “steel crisis entirely of their own making”.

“As business secretary, I negotiated a modernisation plan with British Steel to limit job losses and keep the plant running, including introducing an electric arc furnace in Teesside, similar to what we did with Tata at Port Talbot steelworks.

“However, the union-led Labour government have bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable. Keir Starmer should have seen this coming. But instead of addressing it earlier in the week when parliament was sitting, their incompetence has led to a last-minute recall of parliament.”

She added the government’s attempts to find a solution to the crisis are inevitably “going to cost taxpayers a lot of money”.

Read more from Sky News:
Michael Gove handed peerage
Tickets on sale for Electoral Dysfunction live show
Badenoch denies supporting local coalitions

A general view shows British Steel's Scunthorpe plant.
Pic Reuters
Image:
British Steel’s Scunthorpe plant.
Pic Reuters

Meanwhile, the Unite union welcomed Sir Keir’s announcement by saying it is “absolutely the right thing to do to begin the process of nationalisation”.

The government has not confirmed plans to nationalise the company, but like the prime minister this evening, Chancellor Rachel Reeves said earlier this week that “all options” are on the table.

Unite general secretary Sharon Graham said this evening: “I am pleased that the government has listened to representations by Unite and other steel unions over the future of British Steel.

“Ministers could not have allowed a foundation industry to go under with the loss of more than 3,000 jobs and key skills… Discussions have been positive and whilst a longer-term plan needs to be developed, this gives workers the reprieve we have been asking for.”

‘When it was Wales, they mocked’

The government’s intervention over British Steel comes six months after the last blast furnace was closed at Port Talbot in Wales.

Welsh political party Plaid Cymru has questioned why the government did not take similar action to save that steelworks.

The party’s Westminster leader Liz Saville Roberts MP said: “Parliament is being recalled [on Saturday] to debate the nationalisation of Scunthorpe steelworks.

“But when global market forces devastated Welsh livelihoods in Port Talbot, Labour dismissed Plaid Cymru’s calls for nationalisation as ‘pipe dreams’.

“In a real emergency, governments step up to defend their strategic interests. Plaid Cymru recognised the importance of Welsh steelmaking. Labour chose to look the other way.

“When it was Wales, they mocked. Now it’s England, they act.

“Labour has taken Wales for granted for far too long – and the people of Wales won’t forget it.”

Continue Reading

Business

UK economy grows – ONS

Published

on

By

UK economy grows - ONS

The economy performed better than expected in February, growing by 0.5% according to official figures released on Friday, but comes ahead of an expected hit from the global trade war.

The standard measure of an economy’s value, gross domestic product (GDP), rose in part thanks to a suprisingly strong performance from the manufacturing sector, data from the Office for National Statistics (ONS) suggested.

Following the publication of the figures, the British pound rose against the dollar, jumping 0.4% against the greenback to $1.3019 within an hour.

Analysts had been forecasting just a 0.1% GDP hike in the lead-up to the announcement, according to data from LSEG.

Chancellor of the Exchequer Rachel Reeves described the results as “encouraging”, but struck a cautious tone when alluding to US President Donald Trump’s tariffs, and the economic volatility of the past week.

“The world has changed, and we have witnessed that change in recent weeks,” she said.

“I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them,” Ms Reeves added. “This government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest.”

More on Uk Economy

But back in February, when Mr Trump was just beginning his second term in office, the UK’s economy looked to be on firmer ground.

Service sectors like computer programming, telecoms and car dealerships all had strong a month, while manufacturing industries such as electronics and pharmaceuticals also helped to drive GDP growth in February.

Car manufacturing also picked up after its recent poor performance.

“The economy grew strongly in February with widespread growth across both services and manufacturing industries,” said Liz McKeown, ONS Director of Economic Statistics.

While motor vehicle manufacturing and retail both grew in February 2025, they remain below February 2024 levels by 10.1% and 1.1% respectively

This aligns with industry data showing year-on-year declines in registrations and manufacturing.

“The UK economy expanded by 0.5% in February, surprising but welcome positive news,” said Hailey Low, Associate Economist at the National Institute of Economic and Social Research.

“However, heightened global uncertainty and escalating trade tensions mean the outlook remains uncertain, with a likely reduced growth rate this year due to President Trump’s “Liberation Day” announcements.”

Ms Low said that this could create a dilemma for Ms Reeves, who would face difficult decisions later in the year when the chancellor presents her next budget.

The latest data also shows a jump from January, when the economy was flat. And compared to the same month a year ago, GDP was 1.4% higher in February 2025.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

Trending