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.
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”.
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9:35
China relationship ‘really important’
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.”
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”.
Image: Raw materials for the Scunthorpe steel plant
Image: Coking coal is unloaded at Immingham Port. Pic: Reuters
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.
As riots broke out across the country last summer following the Southport attack, fear spread in a majority Muslim part of Birmingham that far-right protesters were on their way.
Locals came out on to the streets, and as I was reporting live on air, I was surrounded by a small group of masked men, swearing and gesturing to the camera.
Afterwards, as we were trying to drive away from the area, a man with a knife followed us and attempted to slash a tyre on our broadcast van.
Image: The moment Becky Johnson was confronted on camera last summer
A year on, I have returned to the area to discuss what happened with some of those who saw their city descend into chaos.
“The local community had lost faith in the local elected members as well as the local policing units,” says Naeem Yousef, 48, who lives nearby.
“They thought…the only way to protect themselves and the community was by coming out in force.”
‘You can’t control their behaviour’
Tanveer Choudhry, 56, agrees. “In every community we have our sort of, shall we call them… idiots, and you can’t control their behaviour,” he says.
“I think there was a concern that the far-right group that was coming may well be armed… so I think it was just trying to counteract what they thought was coming.”
We are sitting in a cafe, not far from where the unrest broke out last summer.
Image: Masked men surrounded the Sky team during the unrest
‘They were looking for who they thought were the enemy’
The group I’m with were invited by community activist Naveed Sadiq, who was there that day.
As well as Naveed, there are three other local Muslim men, and two white residents, including Gerry Moynihan.
He recalls deciding to stay at home that day.
“They were looking for what they thought were the enemy – white people – and trying to find white people,” he says.
“Which is why I stayed in my house, because the intelligence I had was, don’t get involved, don’t walk around, and you know, it will pass.”
I ask the group if my team and I were targeted because we were white.
Image: Gerry Moynihan says he decided not to leave his home
“It’s not because you’re white, it’s because they’re actually bored,” Naveed says. “They were wanting a bit of excitement.”
I ask if they think it would have happened if we were all British Asian.
“Of course,” Tanveer replies. “It wasn’t the fact that you were white… it was just the heat of the moment”.
Naeem believes it happened simply because the men involved “do not want anyone filming what they’re doing”.
“You could have been Asian… they would still try to get you out of the area,” he insists.
Image: Tanveer believes our team would still have been targeted if we were a different ethnicity
‘Are we going to be accepted?’
I’m keen to understand how these men feel now and whether the sentiment that brought people out on to the streets to “protect” them has been reignited by the recent protests outside hotels housing asylum seekers.
The answer, from Joe Khann, a local Muslim man, would surprise many.
“I would like to go and join them,” he says, referring to the anti-immigration protesters who have gathered several times in Epping.
“We have this problem within our own communities, and people don’t talk about it. We feel exactly the same and we understand how the English feel with the immigration,” he explains.
Image: ‘We feel exactly the same’ on immigration, says Joe Khann
“We’re having people who are getting married back home, they get married for six months, get divorced…and the government gives them all their help to get accommodation, their national insurance numbers and all that,” he says.
“We’re getting fed up within our own community because we hear this constantly.”
However, he thinks if he did try to join in protests, people would “think I’m an immigrant”.
He says he is “born here, 58, and they look at me as a foreigner or a migrant”.
Naeem agrees. “The question is for us now, as people who are born and bred in this country, what is our identity? Who are we?” he asks.
“As a white person born in this country, you are automatically accepted. Are we going to be accepted? How many generations will it take for us to be accepted?”
Image: Naeem (left) says even those born in the UK question their identity
‘You have to blame someone’
Naeem is also concerned about immigration.
“We have an influx of people that we do not know about, and they have no loyalty to the area,” he says.
“I believe that the average white guy… isn’t racist, they’re just fed up,” adds Naveed.
However, these men do have grievances, particularly with the media.
“We feel that we have a two-tier journalists system where when the colour is like mine we get different justice and when the colour is a bit paler it’s different,” Naveed says.
Image: ‘When the colour is like mine we get different justice,’ says Naveed (left)
‘We have become the bogeyman’
“When there’s criminality, and it’s on the news, a Muslim has to be identified by his religion,” Naeem says.
He believes Muslims have become the “bogeyman” in many people’s minds.
“Where you don’t have housing for example, where the crime has increased, you have to blame someone,” he says.
“Prior it was the Irish community, now it’s the Muslim community.
“It’s a distraction from the actual real issues and how you can resolve them but let’s just put it on to the Muslim community for now, let’s just distract the whole nation and say look it’s the problem with asylum, it’s a problem with Muslims,” he says.
After leaving, I head over to the spot on the roundabout where my team were targeted last year.
As I stand there, my colleague sees a man imitating pulling the trigger of a gun at me from his car.
Sir Keir Starmer and Emmanuel Macron’s migrant deal comes into force today, with detentions set to begin by the end of the week.
The “one in, one out” pilot scheme – which allows the UK to send some people who have crossed the Channel back to France in exchange for asylum seekers with ties to Britain – was signed last week, and has now been approved by the European Commission.
It comes as 2025 is on course to be a record year for crossings.
Approximately 25,436 people have already made the journey this year, according to PA news agency analysis of Home Office figures – 49% higher than at the same point in 2024.
The scheme also means that anyone arriving in a small boat can be detained immediately, with space set aside at immigration removal centres in anticipation of their arrival.
Sir Keir said the ratification of the treaty will “send a clear message – if you come here illegally on a small boat you will face being sent back to France”.
Ministers have so far declined to say how many people could be returned under the deal, however, there have been reports that under the scheme only 50 people a week will be returned to France.
Analysis: Deal will need to go much further to work
Sky News political correspondent Rob Powellsaid while it was a “policy win” for the government, the numbers must eventually “go a lot higher” than 50 per week if it is to work as a deterrent.
“The average crossing rate is about 800 a week, so this will need to go up by a sizeable factor for that message to start seeping through to people trying to make that crossing,” Powell added.
The aim will be to make asylum seekers believe the “risk of going back to France is so big that they shouldn’t bother parting with their cash and paying smugglers” to make the crossing.
Image: Migrants in Dunkirk, France, preparing to cross the English Channel.
The Conservatives have branded the agreement a “surrender deal” and said it will make “no difference whatsoever”.
Under the terms of the agreement, adults arriving on small boats will face being returned to France if their asylum claim is inadmissible.
In exchange, the same number of people will be able to come to the UK on a new legal route, provided they have not attempted a crossing before and subject to stringent documentation and security checks.
The pilot scheme is set to run until June 2026, pending a longer-term agreement.
Home Secretary Yvette Cooper will face questions on the agreement on Sky News Breakfast this morning.
Police are warning of mass arrests if a protest in support of the banned group Palestine Action goes ahead on Saturday.
Hundreds of people are expected to turn out for the demonstration, which is understood to be planned for London.
However, the Metropolitan Police said “anyone showing support for the group can expect to be arrested.”
“We are aware that the organisers of Saturday’s planned protest are encouraging hundreds of people to turn out with the intention of placing a strain on the police and the wider criminal justice system,” said a spokesperson.
The organisers, a pressure group called Defend Our Juries, denied their protest will try to overwhelm the police and justice system.
“If we are allowed to protest peacefully and freely, then that is no bother to anyone,” said the group in a statement.
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1:29
What’s happening to Palestine Action?
Palestine Action was banned under terrorism laws after two aircraft were damaged at RAF Brize Norton on 20 June.
Home Secretary Yvette Cooper said the vandalism of the planes was “disgraceful” and accused the group of a “long history of unacceptable criminal damage”.
The ban means membership of, or support for, Palestine Action is a criminal offence punishable by up to 14 years in prison.
More than 200 people supporting the group were arrested at Defend Our Juries protests across the UK last month, many of whom held placards with the message: “I oppose genocide, I support Palestine Action.”
Downing Street has urged people not to attend this weekend’s protest.
Image: Monday’s protesters waved flags and banged pan lids
It comes after around 40 people gathered outside Labour HQ on Monday to protest the party’s stance on Gaza.
They were watched by a small group of police officers as they chanted phrases including: “Shame on Keir Starmer, shame on the Labour Party, shame on David Lammy.”
Separately, the Board of Deputies of British Jews has also confirmed it will protest this weekend, with community organisations marching through central London to Downing Street on Sunday.
They are calling for the government not to recognise the state of Palestine without all hostages taken by Hamas being released.
Last week, Sir Keir Starmer said he planned to recognise Palestine by the UN General Assembly meeting in September, unless Israel met certain conditions including agreeing a ceasefire and improving the humanitarian situation in Gaza.