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 that legislation will be passed tomorrow to allow the government to “take control of the plant and preserve all viable options” for it.
MPs 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.
Jingye also rejected a £500m state rescue package in a move which raised fresh doubts about the 3,500 people employed 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.
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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.”
Image: One of the two blast furnaces at British Steel’s Scunthorpe operation
‘A new era of global instability’
The prime minister added that he has been to the site in Scunthorpe and met the steelworkers there.
He said that 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.”
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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.
The Lords will also return to parliament for a rare Saturday sitting tomorrow.
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3:31
Inside the UK’s last blast furnaces
Tory leader criticises Starmer
Business Secretary Jonathan Reynolds said this evening that 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”.
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Image: British Steel’s Scunthorpe plant.
Pic Reuters
Meanwhile the Unite union welcomed Sir Keir’s announcement by saying it is “absolutely the right things 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.”
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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 didn’t take similiar action to save that steelworks.
The party’s Westminster leader Liz Saville Roberts MP said: “Parliament is being recalled tomorrow 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.”
Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.
Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.
Image: King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.
“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.
Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.
Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.
King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.
Image: King Charles speaking at state banquet welcoming Macron.
Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”
In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.
The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.
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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.
The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.
Image: President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.
Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.
He said European countries had to break away from economic dependence on the US and China.
“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.
“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”
Emmanuel Macron addressing parliament in the Palace of Westminster’s Royal Gallery was a highly anticipated moment in the long history of our two nations.
That story – the conflict and a historic Anglo-French agreement that ended centuries of feuding, the Entente Cordiale – adorn the walls of this great hall.
Looming over the hundreds of MPs and peers who had gathered in the heat to hear the French president speak, hang two monumental paintings depicting British victories in the Napoleonic wars, while the glass stand in the room commemorates the 408 Lords who lost their lives fighting for Europe in two world wars.
The French president came to parliament as the first European leader to be honoured with a state visit since Brexit.
It was the first address of a French president to parliament since 2008, and Mr Macron used it to mark what he called a new era in Anglo-Franco relations.
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7:22
Sky News’ political correspondent Tamara Cohen was watching Emmanuel Macron’s speech. She highlights the president saying he wants to see tangible results on migration.
Peers and MPs cheered with delight when he confirmed France would loan the Bayeux Tapestry to the UK in the run-up to the anniversary of William the Conqueror’s birthday.
“I have to say, it took properly more years to deliver that project than all the Brexit texts,” he joked as former prime minister Theresa May watched on from the front row
From Brexit to migration, European security, to a two-state solution and the recognition of Palestine, Mr Macron did not shy away from thorny issues, as he turned the page on Brexit tensions woven through Anglo-French relations in recent years, in what one peer described to me as a “very political speech rather than just the usual warm words”.
Image: Emmanuel Macron addresses parliament
He also used this address to praise Sir Keir Starmer, sitting in the audience, for his leadership on security and Ukraine, and his commitment to the international order and alliances forged from the ashes of the Second World War. For that, he received a loud ovation from the gathered parliamentarians.
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3:28
Macron’s first-ever state visit: personal or political?
The test now for Sir Keir is whether he can turn his deft diplomatic work in recent months with Mr Macron into concrete action to give him a much-needed win on the domestic front, particularly after his torrid week on welfare.
The government hopes that France’s aim for “cooperation and tangible results” at the upcoming political summit as part of this state visit, will give Starmer a much-needed boost.
Under this plan, those crossing the Channel illegally will be sent back to France in exchange for Britain taking in an asylum seeker with a family connection in the UK.
But as I understand it, the deal is still in the balance, with some EU countries unhappy about France and the UK agreeing on a bilateral deal.
Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.
Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.
Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.
“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.
Looking ahead to the UK-France summit on Thursday, he promised the “best ever co-operation” between France and the UK “to fix today what is a burden for our two countries”.
Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.
King Charles also addressed the France-UK summit at the state banquet in Windsor Castle on Tuesday evening, saying it would “deepen our alliance and broaden our partnerships still further”.
Image: King Charles speaking at state banquet welcoming Macron.
Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”
In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.
The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.
Spotify
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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.
The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.
Image: President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.
Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.
He said European countries had to break away from economic dependence on the US and China.
“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.
“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”