House of Commons · Urgent Question
07 April 2025 · 15 other contributors
Opened by Martin Vickers Con Brigg and Immingham
Summarised by AI from the official record, so it can contain mistakes.
Martin Vickers raised concerns about scunthorpe steelworks 2025-04-07 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm what actions the Government are taking to prevent the closure of Scunthorpe’s steelworks? The urgency stems from British Steel's recent announcement of early asset closures at Scunthorpe, which could lead to large-scale redundancies and economic distress. Martin Vickers seeks clarity on the contingency plans and whether nationalisation is being considered as an option.
Question
While the support provided by DWP is welcome, Jingye has cancelled essential raw material orders required to keep furnaces running. Given the current situation, can the Minister confirm that nationalisation on a temporary basis is being actively considered? It would provide an opportunity for rebuilding the industry and securing new private sector involvement.
Minister reply
Jingye is still talking to us and we are exploring various options. No options are off the table, but at this stage, it would be damaging to speculate on how events might unfold while a live negotiation is under way.
Question
The cancellation of shipments of essential coking coal for Scunthorpe raises concerns about the lack of an industrial strategy. The Minister will be aware that we have seen a significant decline in steel manufacturing over the last decade. What steps are being taken to establish a comprehensive steel plan?
Minister reply
We are committed to turning around the significant decline in UK steelmaking and have a £2.5 billion investment plan for UK steelmaking. We are having roundtables to gather evidence and pull together facts and figures, including one at JCB in Stafford today.
Question
Despite Labour’s promises when in opposition, thousands of blue-collar jobs are now at risk. Given the regions most affected by steelworker job losses, what assessment has been made of the effects on regional inequality? Moreover, will the Minister redouble efforts to reach a deal with British Steel and press for permanently lower industrial energy prices?
Minister reply
The previous Government's failure to intervene in the steel industry led to offshoring of jobs. We are aware of high energy prices but doing all we can to bring them down. We will do everything possible in negotiations with British Steel, though I cannot go into detail about their state due to potential negative impacts.
Question
Speculation around British Steel at Scunthorpe is deeply concerning for workers and business owners. The steel industry plays a crucial role in our green economy, aiding railway expansion and zero carbon housing construction. With the Chancellor's decision to increase national insurance contributions and Trump’s tariffs on steel and aluminium, what incentive does British Steel have to continue? Can she confirm when we will receive the industrial strategy?
Minister reply
We are developing a long-term plan in our industrial strategy, including a dedicated steel strategy. We understand the concerns about tariffs and have met with the steel sector multiple times to discuss them. The Secretary of State met the Trade Remedies Authority to address trade protection issues. We will support SMEs in the supply chain as part of the overall strategy.
Question
The whole of northern Lincolnshire feels threatened by British Steel’s potential closure, especially given Jingye's decision. Support from the Department for Work and Pensions is appreciated but it does not address long-term job security issues. Are the Government considering ordering raw materials to keep blast furnaces operating in the interim?
Minister reply
We are having conversations with British Steel about securing raw materials, but we cannot discuss commercially sensitive details at this time. We remain committed to ensuring that no options for keeping the blast furnaces operational and protecting jobs are off the table.
Question
The situation is urgent; British Steel has stopped ordering raw materials, which could lead to the blast furnaces shutting down within days. Will the Government make decisions swiftly to ensure that British Steel remains operational and consider taking it into public ownership for long-term investment?
Minister reply
We are having discussions with British Steel about all options at pace. While we prefer a commercial solution, no options are off the table, including public ownership if necessary.
Question
Will the Government outline their plans to protect jobs in steel industries through backing a robust industrial strategy and the £2.5 billion plan for steel?
Minister reply
We are looking at supply chains and how we can boost industry more widely through our industrial strategy, including skills, R&D, access to finance, and other factors that businesses need.
Question
Between 1997 and 2010, about 36,000 jobs were lost in steelmaking under Labour. I am concerned about talk of nationalisation and the impact of high energy costs on industries like British Steel. Should we not consider a golden share to give us some say over operations rather than driving up energy bills unsustainably?
Minister reply
We are looking at all options, talking with British Steel for a good outcome, and addressing high energy costs through measures such as the supercharger support for high-energy intensive industries.
Question
Given intense media speculation that blast furnaces will close before consultation is complete, can you reassure me and workers that everything possible is being done to prevent this from happening, ensuring Jingye complies with UK law?
Minister reply
We are committed to ensuring any deal using taxpayers' money adheres to the law and provides good use of public funds. The offer includes conditions for legal compliance, job protection, and respect for UK law.
Question
Is it not vital that we maintain a strategic capability to make steel? It is unconscionable to build British warships with imported steel. Is a wholesale change in energy policy necessary for our future needs, including wartime requirements?
Minister reply
We agree on the need for steel production in the UK but note some nuance regarding high-quality steel made via electric arc furnaces and scrap steel. We are conducting a review of primary steel production to ensure strategic capability.
Question
Given the vital importance of this industry, on which I believe the whole House agrees, does she recognise that it would be a siren to those who, on a national scale, would be less than trustworthy, if we were unable to produce virgin steel ourselves? Given the undoubted national security risk, does she agree that, despite no options being off the table, one outcome that is absolutely off the table is closure? If so, why not just commit to protecting and saving these jobs?
Minister reply
British Steel is a private company owned by Jingye, and it is for Jingye to make its own decisions. I have said multiple times that we will continue to talk to see if we can come to an agreement on the very generous offer that was made. We are looking at all options, because we know that is the right thing to do. To be clear, we do not want the blast furnaces to close, and we want to come to an agreement.
Question
Why will she not guarantee the supply of the raw materials needed to keep the blast furnaces open, and why will she not admit that steel has no future in this country so long as this Government’s trade and climate policies continue?
Minister reply
If only the hon. Member had done something when he had some influence as an adviser to a previous Prime Minister. That would have been good, wouldn’t it? I was not sent here to divulge commercially confidential conversations with a private company that affect thousands of people’s jobs, and if the hon. Member thinks that I was, he is wrong.
Question
Will the Minister commit to ordering the raw materials to keep those furnaces on, if necessary? She said in response to a question on primary steel that a consultation was under way on a strategy, and that we would look at what we needed to do. It is clear what we need to do: produce primary steel.
Minister reply
That is what we were telling the previous Government for many years. British Steel is owned by a Chinese company because the purchase was made under the last Government in a commercial and private sector way. Labour Members believe in fair, open markets; I do not know quite what the Opposition are becoming.
Question
Will the Minister confirm that ahead of any announcement made on Scunthorpe steel, she will commit to meeting the workers who will be directly affected by any decision, and provide a way forward, so that workers in the steel industry are secure in their employment and are protected throughout the United Kingdom?
Minister reply
I thank the hon. Gentleman for his question. We of course continue to talk to the trade unions, including Community, GMB and Unite, who have been incredibly strong voices for their workers in Scunthorpe. We will continue to talk to them and to people who work there, to understand exactly what they are going through. They have to be at the heart of all the decisions we make.
Government Response
I appeared before this House on 27 March, just moments after British Steel’s devastating announcement of early asset closures at Scunthorpe and its commercial decision to consult on large-scale redundancies. The course of action chosen by British Steel’s owner is deeply disappointing, and our thoughts remain with British Steel workers and their families at this very concerning time. Government’s contingency plans have kicked in, and teams from the Departments for Work and Pensions and for Education are there to provide support and advice to affected workers. We will ensure that support is in place for as long as possible. Looking ahead, I can assure this House that early blast furnace closures at Scunthorpe are far from a done deal. Government has made the company a generous offer of public funding on 24 March with necessary conditions attached to protect workers and safeguard taxpayers’ money. Despite British Steel’s owner rejecting our offer, we remain resolute in securing a long-term future for the Scunthorpe steelworks, retaining steel production and ending years of uncertainty. The Government are actively considering all options, including nationalisation on a temporary basis, to find a better outcome.