‘Likely’ British Steel will be nationalised, says business secretary Jonathan Reynolds

Published

2 months ago

April 16, 2025

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Business Secretary Jonathan Reynolds has said it is “likely” that British Steel will be nationalised.

It comes after he appeared to row back on his claim that he would not bring a Chinese company into the steel sector again after the government had to urgently step in to save the British Steel plant in Scunthorpe.

Mr Reynolds, speaking to reporters in the Lincolnshire town, said that nationalisation was the “likely option at this stage”.

He added: “What we are now going to do, having secured both control of the site and the supply of raw materials, so the blast furnaces won’t close in a matter of days, is work on the future.

“We’ve got the ownership question, which is pressing.

“I was clear when I gave the speech in parliament – we know there is a limited lifespan of the blast furnaces, and we know that what we need for the future is a private sector partner to come in and work with us on that transformation and co-fund that transformation.”

Reynolds rows back

Mr Reynolds said he would look at Chinese firms “in a different way” following the race to save British Steel, but did not rule out their involvement completely.

The comments were at odds with his previous remarks to Sky News’ Sunday Morning With Trevor Phillips, when he said he would not “personally bring a Chinese company into our steel sector” again, describing steel as a “sensitive area” in the UK.

The government has taken over British Steel’s Scunthorpe plant, the last in the UK capable of producing virgin steel, after talks with its Chinese owners, Jingye, broke down.

Politics latest: US ‘working very hard’ on negotiating ‘great’ UK trade deal

The company recently cancelled orders for supplies of the raw materials needed to keep the blast furnaces running, sparking a race against time to keep it operational.

Materials secured by the government arrived at the site on Tuesday, but questions remain about the long-term future of British Steel and whether it will be fully nationalised or the private sector will get involved.

Earlier on Tuesday, industry minister Sarah Jones said she is “not ruling out” the possibility of another Chinese partner.

She said having a pragmatic relationship with Beijing, the world’s second-biggest economy, is still important and stringent tests would apply “to a Chinese company as they would to any other company”.

Asked for clarity on his position during a visit to the port of Immingham, where materials from two ships are being unloaded and transported to the plant, Mr Reynolds said: “I think we’ve got to recognise that steel is a sensitive sector.

“A lot of the issues in the global economy with steel come from production and dumping of steel products… so I think you would look at a Chinese firm in a different way.

“But I’m really keen to stress the action we’ve taken here was to step in because it was one specific company that I thought wasn’t acting in the UK’s national interest, and we had to take the action we did.”

Explainer: Why has the government rescued British Steel?

The materials that arrived on Tuesday, including coking coal and iron, are enough to keep the furnaces running for weeks, the Department for Business and Trade said.

They are needed because if the furnaces cool down too much, the molten iron solidifies and blocks the furnaces, making it extremely difficult and expensive to restart them.

Switching off furnaces is a costly nightmare the govt wants to avoid

There’s no switch that easily turns a blast furnace on and off.

Temperatures inside can approach 2,000C and to protect the structure the interior is lined with ceramic insulation.

But the ceramic bricks expand and contract depending on the temperature, and any change needs to be done carefully over several weeks to stop them cracking.

Molten material inside the furnace also needs to be drained by drilling a hole through the wall of the furnace.

It’s a dangerous and expensive process, normally only ever done when there’s a major planned refurbishment.

That’s why the government wants to keep the furnaces at Scunthorpe burning.

The problem is, supplies for the furnaces are running low.

They need pellets of iron ore – the main raw material for making steel.

And they also need a processed form of coal called coke – the fuel that provides both the heat and the chemical reaction to purify the iron so it’s ready to make strong steel alloy.

Without a fresh supply of both the furnaces may have to be turned off in just a fortnight. And that would be a complex, costly nightmare the government wants to avoid.

‘Chinese ownership truly dreadful’

Opposition politicians have accused China of sabotage to increase reliance on its steel products, and want the country to be prevented from future dealings not only with steel but any UK national infrastructure.

Veteran Tory MP Sir Iain Duncan Smith said the government needs to define which industries are “strategic” – and prevent China from being allowed to invest in such sectors.

Liberal Democrats foreign affairs spokesperson Calum Miller said reverting to Chinese ownership would be like finding “your house ransacked and then leaving your doors unlocked”.

Reform UK leader Nigel Farage took the same position, saying the thought the government “could even contemplate another Chinese owner of British steel is truly dreadful”, and that he would not have China “in our nuclear program, anywhere near our telecoms or anything else”.

“They are not our friends,” he added.

Number 10 said on Monday that it was not aware of any “sabotage” at the plant and there is no block on Chinese companies.

The Chinese embassy has urged the British government not to “politicise” the situation by “linking it to security issues”, saying it is “an objective fact that British steel companies have generally encountered difficulties in recent years”.

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Jingye reported losses of around £700k a day at Scunthorpe, which will now come at a cost to the taxpayer after emergency legislation on Saturday allowed the government to take it over.

During Tuesday morning’s interview round, Ms Jones said the government had offered Jingye money in return for investment and “we think that there is a model there that we could replicate with another private sector company”.

But she said there “isn’t another private sector company there waiting in the wings” currently, and that it may be a “national solution” that is needed.

She said “all of the options” were expensive but that it would have cost more to the taxpayer to allow the site to shut.

A YouGov poll shows the majority of the public (61%) support the government’s decision to nationalise British Steel.

UK

MPs vote to decriminalise abortion in England and Wales

Published

1 hour ago

June 18, 2025

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MPs vote to decriminalise abortion in England and Wales

MPs have voted to decriminalise abortion in England and Wales.

The amendment to the Crime and Policing Bill, abolishing the prosecution of women for terminating their pregnancy at any stage, passed by 379 votes to 137.

It represents the biggest shake-up in reproductive rights for almost 60 years.

Labour MP Tonia Antoniazzi, who tabled the so-called “New Clause One” (NC1), said it would ensure women do not face investigation, arrest, prosecution or imprisonment in relation to any pregnancies.

She said the current “Victorian” laws had been used against vulnerable women, citing cases such as Nicola Packer, who was prosecuted on suspicion of having an illegal abortion. She was found not guilty in May.

“Nicola’s story is deplorable, but there are many others,” Ms Antoniazzi said.

Abortion in England and Wales is currently a criminal offence but is legal with an authorised provider for up to 24 weeks after conception. The procedure is allowed after this time in very limited circumstances.

It is also legal to take prescribed related medication at home if a woman is less than 10 weeks pregnant.

Ms Antoniazzi said NC1 was “a narrow, targeted measure” that would not change how abortion services were provided or the rules under the 1967 Abortion Act.

She said: “The 24 [week] limit remains. Abortions still require the approval of signatures of two doctors, and women would still have to meet the grounds laid out in the Act.”

The MP said that meant healthcare professionals “acting outside the law and abusive partners using violence or poisoning to end a pregnancy would still be criminalised, as they are now.”

She added: “This piece of legislation will only take women out of the criminal justice system because they are vulnerable and they need our help.

“As I have said before, and I will say it again, just what public interest is this serving? This is not justice, it is cruelty and it has got to end.”

The change will not come into effect immediately as the Crime and Policing Bill is still making its way through Parliament.

A separate amendment, put forward by Labour MP Stella Creasy, went further with a measure to “lock in” the right of a person to have an abortion while protecting those who help them.

However, her amendment was not voted on because Ms Antoniazzi’s passed, as expected.

Conservative MP Sir Edward Leigh, speaking against both amendments, described them as “not pro-woman” and argued they “would introduce sex-selective abortion”.

How did MPs vote?

MPs were given a free vote on the amendment, as is typically the case with so-called matters of conscience.

A breakdown of the vote showed it was passed overwhelmingly by Labour and Lib Dem MPs.

Just eight Conservative MPs voted in favour, while all Reform UK MPs opposed the amendment, with the exception of the party’s leader Nigel Farage, who abstained.

Sir Keir Starmer was not present for the vote as he is currently in Canada for the G7 summit, but said earlier that his “longstanding in-principle position is that women have the right to a safe and legal abortion”.

The issue of women investigated by police over suspected illegal abortions has been in the spotlight due to several recent high-profile cases.

Ms Packer was cleared by a jury last month after taking prescribed abortion medicine at home when she was around 26 weeks pregnant, beyond the legal limit of 10 weeks.

In the Commons, Ms Antoniazzi cited another case of a young mother who was jailed for two years after she was forced to take illegal abortion medication by her abusive partner. He was never investigated.

UK

UK weather: Yellow heat health alerts issued for most of England

Published

14 hours ago

June 17, 2025

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UK weather: Yellow heat health alerts issued for most of England

Yellow heat health alerts have been issued for most of England – with temperatures forecast to hit highs of 33C (91F) this weekend.

Only the North East and North West are exempt from the UK Health Security Agency’s (UKHSA) latest warning, which comes into force at 12pm on Wednesday and expires at 6pm on Sunday.

The alert indicates that people with pre-existing health conditions, and those aged over 65, could be at higher risk.

Forecasters say the East of England is likely to see the highest temperatures, which wouldn’t be far off the June record of 35.6C (90F) set in 1976.

According to the Met Office, it will get progressively warmer as the week progresses – with the heat peaking on Sunday.

Deputy chief meteorologist Dan Holley said thundery showers may be possible heading into Saturday morning, with “tropical nights” a possibility as parts of the UK approach heatwave territory.

The forecast means we are likely to see the hottest day of the year so far – eclipsing the 29.4C (85F) recorded last Friday in Suffolk.

In a delicious twist, ice cream makers have said “it’s their Christmas time”, with some making fresh supplies around the clock.

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UK

US-UK trade deal ‘done’, says Trump as he meets Starmer at G7

Published

1 day ago

June 17, 2025

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US-UK trade deal 'done', says Trump as he meets Starmer at G7

The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.

The US president told reporters in Canada: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”

Sir Keir said the document “implements” the deal to cut tariffs on cars and aerospace, describing it as a “really important agreement”.

“So this is a very good day for both of our countries – a real sign of strength,” the prime minister added.

Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.

However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.

What exactly does trade deal being ‘done’ mean?

The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.

That is “expected to come into force by the end of the month”.

Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.

The White House says there will be a quote of 100,000 cars eligible for import at that level each year.

But on steel, the story is a little more complicated.

The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.

That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.

The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.

Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.

There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.

The White House says they “committed to negotiate significantly preferential treatment outcomes”.

Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”

He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.

“He’s slightly more liberal than me to put it mildly… but we get along.”

Sir Keir added that “we make it work”.

As the pair exited a mountain lodge in the Canadian Rockies where the summit is being held, Mr Trump held up a physical copy of the trade agreement to show reporters.

Several leaves of paper fell from the binding, and Sir Keir quickly stooped to pick them up, saying: “A very important document.”

The US president also appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.

Mr Trump announced his “Liberation Day” tariffs on countries in April. At the time, he announced 10% “reciprocal” rates on all UK exports – as well as separately announced 25% levies on cars and steel.

In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.

Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.