- 12/04/2025
- Posted by: Valerie Vaz MP
- Category: Articles, Local News
I was pleased to attend the recall of Parliament on Saturday 12 April 2025 to introduce emergency legislation regarding steel undertakings. These undertakings will allow the Government to direct the workforce and order the raw materials needed to keep the blast furnaces running at British Steel. Today, we take decisive action to keep all options on the table so that we can secure the future of the site, bringing security to the thousands of steelworkers at the site, their families and the community of Scunthorpe.
The Government will always do what is necessary to keep Britain secure at home and strong abroad and are doing what previous governments have failed to, acting in the national interest to help secure UK steelmaking for the future.
The Government will always stand up for UK steelmaking, prioritising security and renewal in a changing world and we have always said we would keep all options on the table for British Steel and have been working around the clock to protect jobs.
And the Government has always been clear there is a bright future for steel in the UK which is why we have committed with billions of pounds of support to back British industry and bring renewal. This strategic decision aims to secure UK manufactured steel for nationally important projects like airports, rail and housing – essential to deliver growth as part of the Plan for Change.
The Government has made a generous offer of support to British Steel with necessary conditions for providing public money. This was consistent with the approach to other, similar deals, but British Steel’s owners have consistently refused to meet the terms set out by the Government – which were designed to protect workers, safeguard taxpayers’ money and deliver a sustainable company for the future. Despite a live negotiation remaining underway, in recent weeks British Steel’s owners have significantly accelerated their plans to close blast furnaces following their announcement on 27 March of early asset closures and statutory redundancy consultations. The Government has had to act to respond to this at pace.
British Steel is a vital asset to the UK that supplies 90% of Network Rail’s rail steel requirement as well as being the UK’s major supplier of construction sections. The blast furnaces in Scunthorpe are the UK’s last. If they are allowed to close the UK will be the only country in the G20 not able to make primary steel (iron)
Here is a Summary of the Bill: The Steel Industry (Special Measures) Bill grants the Government emergency powers to direct steel companies.
These powers would then be used to take the necessary actions needed to secure the immediate future of British Steel in Scunthorpe by maintaining the operation of the blast furnaces.
- To provide a set of powers for the Secretary of State for DBT to make interventions in relation to steel undertakings in England that are at risk of ceasing to be so used (whether on a permanent or temporary basis).
- To provide for the circumstances in which, and purposes for which such powers may be exercised.
- To set out the mechanisms and processes for such interventions and to enable the Secretary of State to provide for their consequences in secondary legislation as needed;
- To require or enable the Secretary of State (with the consent of the Treasury) to provide financial assistance to steel production companies that become the subject of intervention measures;
- To make any provision needed about the subsidy control consequences of such interventions;
- To establish compensation arrangements for owners of or investors in such companies following any use of the Secretary of State’s powers
- To provide for the governance and oversight of such interventions by the Secretary of State and transparency and reporting requirements in relation to them.
- To create criminal offences for non-compliance with directions made under the Act by the Secretary of State.
- To provide for a mechanism for the Secretary of State to seek a High Court injunction to secure the continued and safe operation of specified assets.
The Bill was passed by both Houses and received Royal Assent on 12 April 2025.