A remarkable step by the government – and Donald Trump, China and Reform UK have all played their part
When the sun sets on Scunthorpe this Saturday, the town’s steelworks will likely have a new boss – Jonathan Reynolds.
The law that parliament will almost certainly approve this weekend hands the business secretary the powers to direct staff at British Steel, order raw materials and, crucially, keep the blast furnaces at the plant open.
This is not full nationalisation.
But it is an extraordinary step.
The Chinese firm Jingye will – on paper – remain the owner of British Steel.
But the UK state will insert itself into the corporate set-up to legally override the wishes of the multinational company.
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Govt to take control of steel plant
A form of martial law invoked and applied to private enterprise.
That will come at a cost to the taxpayer.
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No number has been specified, but there are wages to pay and orders to make at a site estimated to already be losing £700,000 a day.
There is also clear frustration in government at how the Chinese owners have engaged in negotiations around modernising the Scunthorpe site.
“Jingye have not been forthright throughout this process”, said the business secretary in his department’s official announcement about the new laws.
Time is so tight because of the nature of the steel-making process.
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Inside the UK’s last blast furnaces
Once switched off, blast furnaces are very hard to turn back on.
If this had happened in Scunthorpe – as seemed likely in a matter of days – then it would have been game over.
This move keeps the show on the road and opens up more time for talks over the long-term future of the plant.
While the official line in Whitehall is that “all options are on the table”, nationalisation seems increasingly likely.
That would need more legislation, if it was done – as seems likely – without the approval of the current owner.
Finding an alternative commercial partner has not been ruled out, but one is not waiting in the wings either.
As for what that long-term future looks like, with just five years of life left in the Scunthorpe blast furnaces, modernisation is inevitable.
Port Talbot’s plant saw its blast furnaces closed last year amid a switch to the more environmentally friendly electric arc furnaces and a loss of thousands of jobs.
A general view shows British Steel’s Scunthorpe plant.
Pic Reuters
Political figures in Wales are now questioning why nationalisation wasn’t on the table for this site.
The response from government is that the deal was done by the previous Tory administration and the owners of the South Wales site agreed to the terms.
But there is also a sense that this decision over British Steel is being shaped by the domestic and international political context.
Labour came to power promising to revitalise left-behind communities and inject a sense of pride back into places still reeling from the loss of traditional industry.
With that in mind, it would be politically intolerable to see the UK’s last two blast furnaces closed and thousands of jobs lost in a relatively deprived part of the country.
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One of the two blast furnaces at British Steel’s Scunthorpe operation
Reform UK’s position of pushing for full and immediate nationalisation is also relevant, given the party is in electoral pursuit of Labour in many parts of the country where decline in manufacturing has been felt most acutely.
The geo-political situation is perhaps more pressing though.
Just look at the strength of the prime minister’s language in his Downing Street address – “our economic and national security are all on the line”.
The government’s reaction to the turmoil caused by President Donald Trump’s pronouncements on tariffs and security has been to emphasise the need to increase domestic resilience in both business and defence.
Becoming the only G7 nation unable to produce virgin steel at a time when globalisation appears to be in retreat hardly fits with that narrative.
It would also present serious practical questions about the ability of the UK to produce steel for defence and the broader switch to green energy production.
Then there is the intriguing subplot around US-China trade.
While this decision is separate from discussions with the White House on tariffs, one can imagine how a UK move to wrestle control of a site of national importance from its Chinese owner might go down with a US president currently engaged in a fierce trade war with Beijing.
This is a remarkable step from the government, but it is more a punctuation mark than a full answer.
The tension between manufacturing and decarbonisation remains, as do the challenges presented by a global economy appearing to fragment significantly.
But one thing is for sure.
As a political parable about changes to traditional industry and the challenges of globalisation, the saga of British Steel is hard to beat.
A man has admitted arson after a major fire at an MP’s constituency office.
Joshua Oliver, 28, pleaded guilty to starting the fire which destroyed the office of Labour MP Sharon Hodgson, at Vermont House in Washington, Tyne and Wear.
The fire also wrecked a small charity for people with very rare genetic diseases and an NHS mental health service for veterans.
The guilty plea was entered at Newcastle Magistrates’ Court on the basis that it was reckless rather than intentional.
Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters
The Crown did not accept that basis of plea.
Oliver, of no fixed address, had been living in a tent nearby, the court heard.
Northumbria Police previously said it was “alerted to a fire at a premises on Woodland Terrace in the Washington area” shortly after 12.20am on Thursday.
“Emergency services attended and no one is reported to have been injured in the incident,” it added.
Drone footage from the scene showed extensive damage to the building.
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A spokesperson for the Crown Prosecution Service said: “Our prosecutors have worked to establish that there is sufficient evidence to bring the case to trial and that it is in the public interest to pursue criminal proceedings.
“We have worked closely with Northumbria Police as they carried out their investigation.”
Oliver was remanded in custody and will appear at Newcastle Crown Court on Tuesday, 14 October.
Dozens of people have gathered at a Sikh temple to attend an emergency meeting after police in the West Midlands said they are investigating the rape of a woman as a “racially motivated attack”.
The victim, reported to be a British-born Sikh aged in her 20s, told officers a racist remark was made to her during the attack in Oldbury, which was reported to police just before 8.30am on Tuesday.
The Sikh Federation (UK) said the perpetrators allegedly told the woman during the attack: “You don’t belong in this country, get out.”
Jas Singh, principal advisor to the Sikh Federation (UK), was among the group of faith and community leaders responsible for holding the meeting at the Guru Nanak Gurdwara temple in Smethwick, a few miles from Oldbury, following concerns within the community.
“I think if you look at it in the context of the climate, it makes it even more worrying because there is a trend of hatred… the targeting of migrants,” he said.
“Ultimately, what that means is the targeting of people’s skin colour, and as Sikhs we have the most distinct, unique identity,” he added.
“We bear the brunt of all prejudice and ignorance, and hate.”
Principal advisor to the Sikh Federation (UK) Jas Singh
Similar sentiments were raised at the meeting, with many horrified by the reports of the sexual assault as well as concerns about their own safety.
“People are trying to divide us,” said a woman in her 30s, who did not want to be named but said, as a Sikh woman, she wanted to be present to have her voice heard.
She was not only referencing the sexual assault but also what she believes has been an increase in overt discrimination.
“Let’s call it what it is, this is racism,” she told the meeting, as she broke down in tears.
Reverend Nick Ross, from Smethwick’s Holy Trinity Church, was also in attendance at the emergency meeting.
He commented on “offensive” graffiti that had been left on the side of the wall of the Sikh temple, while saying his Anglican church had also been defaced.
“We cannot just ignore it, it will go on and it will build, and there will be incidents like this,” he said, referencing racial tensions across the country.
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Faith and community leaders organised the meeting at the Sikh temple
Police are still trying to identify the perpetrators of the attack and want to speak to anyone who may have seen two white men in the area.
The first is described as having a shaved head and a heavy build, and was wearing a dark sweatshirt with gloves on, and the second was reportedly wearing a grey top with a silver zip.
Chief Superintendent Kim Madill, of Sandwell Police, said: “We are working really hard to identify those responsible, with CCTV, forensic and other inquiries well under way.
“We fully understand the anger and worry that this has caused, and I am speaking to people in the community today to reassure them that we are doing everything we can to identify and arrest those responsible.
“Incidents like this are incredibly rare, but people can expect to see extra patrols in the area.”
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