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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.

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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
Image:
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
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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.

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Prince Harry cleared of bullying claims by report into ‘damaging dispute’ at his charity

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Prince Harry cleared of bullying claims by report into 'damaging dispute' at his charity

The Charity Commission has found no evidence of bullying or harassment at a charity set up by Prince Harry.

But it has found that an internal dispute at Sentebale “severely impacted the charity’s reputation”.

Earlier this year its chair, Dr Sophie Chandauka, accused the Duke of Sussex of “harassment and bullying at scale”.

Her comments followed the departure of the prince and several others from the organisation in March.

They had asked her to step down, alleging it was in the “best interest of the charity”.

Dr Chandauka told Sky News that Harry had “authorised the release of a damaging piece of news to the outside world” without informing her or Sentebale directors.

The Duke and Duchess of Sussex declined to offer any formal response.

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Why was Prince Harry accused of ‘bullying’?

‘Strong perception of ill-treatment’

The Charity Commission said it was reporting after a “damaging internal dispute emerged” and has “criticised all parties to the dispute for allowing it to play out publicly”.

That “severely impacted the charity’s reputation and risked undermining public trust in charities more generally”, it said.

But it found no evidence of “widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity”.

Nevertheless, it did acknowledge the “strong perception of ill-treatment felt by a number of parties to the dispute and the impact this may have had on them personally”.

It also found no evidence of “‘over-reach’ by either the chair or the Duke of Sussex as patron”.

‘Confusion exacerbated tensions’

But it was critical of the charity’s “lack of clarity in delegations to the chair which allowed for misunderstandings to occur”.

And it has “identified a lack of clarity around role descriptions and internal policies as the primary cause for weaknesses in the charity’s management”.

That “confusion exacerbated tensions, which culminated in a dispute and multiple resignations of trustees and both founding patrons”.

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Why was Prince Harry accused of ‘bullying’?

Harry: Report falls troublingly short

A spokesperson for Prince Harry said it was “unsurprising” that the commission had announced “no findings of wrongdoing in relation to Sentebale’s co-founder and former patron, Prince Harry, Duke of Sussex”.

They added: “Despite all that, their report falls troublingly short in many regards, primarily the fact that the consequences of the current chair’s actions will not be borne by her, but by the children who rely on Sentebale’s support.”

They said the prince will “now focus on finding new ways to continue supporting the children of Lesotho and Botswana”.

Dr Chandauka said: “I appreciate the Charity Commission for its conclusions which confirm the governance concerns I raised privately in February 2025.”

But she added: “The unexpected adverse media campaign that was launched by those who resigned on 24 March 2025 has caused incalculable damage and offers a glimpse of the unacceptable behaviours displayed in private.”

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Police investigating grooming gangs given AI tools to speed up cold case work

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Police investigating grooming gangs given AI tools to speed up cold case work

All police forces investigating grooming gangs in England and Wales will be given access to new AI tools to help speed up their investigations.

The artificial intelligence tools are already thought to have saved officers in 13 forces more than £20m and 16,000 hours of investigation time.

The apps can translate large amounts of text in foreign languages from mobile phones seized by police, and analyse a mass of digital data to find patterns and relationships between suspects.

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Grooming gang inquiry: ‘Our chance for justice’

‘We must punish perpetrators’

The rollout is part of a £426,000 boost for the Tackling Organised Exploitation (TOEX) programme, which supports officers to investigate complex cases involving modern slavery, county lines and child sex abuse.

The increased access to the AI technology follows Baroness Casey’s recommendation for a national operation to review cold grooming gang cases.

That operation will review more than 1,200 closed cases of child sexual exploitation.

“The sexual exploitation of children by grooming gangs is one of the most horrific crimes, and we must punish perpetrators, provide justice for victims and survivors, and protect today’s children from harm,” said safeguarding minister Jess Phillips.

“Baroness Casey flagged the need to upgrade police information systems to improve investigations and safeguard children at risk. Today we are investing in these critical tools.”

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Key takeaways from the Casey review

Lack of ethnicity data ‘a major failing’

Police forces have also been instructed by the home secretary to collect ethnicity data, as recommended by Baroness Casey.

Her June report found the lack of data showing sex offenders’ ethnicity and nationality in grooming gangs was “a major failing over the last decade or more”.

She found that officials avoided the issue of ethnicity for fear of being called racist, but there were enough convictions of Asian men “to have warranted closer examination”.

The government has launched a national inquiry into the abuse and further details are expected to be announced in the coming weeks.

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Chancellor warned ‘substantial tax rises’ needed – as she faces ‘impossible trilemma’

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Chancellor warned 'substantial tax rises' needed - as she faces 'impossible trilemma'

Rachel Reeves will need to find more than £40bn of tax rises or spending cuts in the autumn budget to meet her fiscal rules, a leading research institute has warned.

The National Institute of Economic and Social Research (NIESR) said the government would miss its rule, which stipulates that day to day spending should be covered by tax receipts, by £41.2bn in the fiscal year 2029-30.

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In its latest UK economic outlook, NIESR said: “This shortfall significantly increases the pressure on the chancellor to introduce substantial tax rises in the upcoming autumn budget if she hopes to remain compliant with her fiscal rules.”

The deteriorating fiscal picture was blamed on poor economic growth, higher than expected borrowing and a reversal in welfare cuts that could have saved the government £6.25bn.

Together they have created an “impossible trilemma”, NIESR said, with the chancellor simultaneously bound to her fiscal rules, spending commitments, and manifesto pledges that oppose tax hikes.

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Could the rich be taxed to fill black hole?

Reeves told to consider replacing council tax

The institute urged the government to build a larger fiscal buffer through moderate but sustained tax rises.

“This will help allay bond market fears about fiscal sustainability, which may in turn reduce borrowing costs,” it said.

“It will also help to reduce policy uncertainty, which can hit both business and consumer confidence.”

It said that money could be raised by reforms to council tax bands or, in a more radical approach, by replacing the whole council tax system with a land value tax.

To reduce spending pressures, NIESR called for a greater focus on reducing economic inactivity, which could bring down welfare spending.

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What’s the deal with wealth taxes?

Growth to remain sluggish

The report was released against the backdrop of poor growth, with the chancellor struggling to ignite the economy after two months of declining GDP.

The institute is forecasting modest economic growth of 1.3% in 2025 and 1.2% in 2026. That means Britain will rank mid-table among the G7 group of advanced economies.

‘Things are not looking good’

However, inflation is likely to remain persistent, with the consumer price index (CPI) likely to hit 3.5% in 2025 and around 3% by mid-2026. NIESR blamed sustained wage growth and higher government spending.

It said the Bank of England would cut interest rates twice this year and again at the beginning of next year, taking the rate from 4.25% to 3.5%.

Persistent inflation is also weighing on living standards: the poorest 10% of UK households saw their living standards fall by 1.3% in 2024-25 compared to the previous year, NIESR said. They are now 10% worse off than they were before the pandemic.

Professor Stephen Millard, deputy director for macroeconomics at NIESR, said the government faced tough choices ahead: “With growth at only 1.3% and inflation above target, things are not looking good for the chancellor, who will need to either raise taxes or reduce spending or both in the October budget.”

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