Scunthorpe Steelworks

Martin Vickers Excerpts

Monday 7th April 2025 Commons Chamber

[Martin Vickers (Brigg and Immingham) (Con)]

(Urgent Question:) To ask the Secretary of State for Business and Trade what actions the Government are taking to prevent the closure of Scunthorpe’s steelworks.

[The Minister for Industry (Sarah Jones)]

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. We have been clear that the best way forward is for British Steel to continue as a commercially run business with private investment and Government acting in support, which is why we made the company a generous offer of public funding on 24 March. As Members are aware, British Steel’s owner did not accept our offer or the necessary conditions attached, which were designed to protect workers, safeguard taxpayers’ money and deliver a sustainable company at the core of the future of British steelmaking.

However, that is not the end of the matter. The Business and Trade Secretary and I met Jingye, the owner of British Steel, on Friday, and there are plans to meet again this week. The Government remain resolute in our desire to secure a long-term future for the Scunthorpe steelworks, retaining steel production and putting an end to the years of uncertainty, and I can assure the House that no options are off the table to achieve that. We will continue to work tirelessly across Government and with British Steel’s owner to find a better outcome.

I cannot go into further detail at this stage. It would be damaging to British Steel’s workers and their families, the company and its supply chain for me to speculate on how events might unfold in the coming days and weeks while a live negotiation is under way and policy is being developed at pace. However, Members should be in no doubt that there is a bright future for steelmaking in the UK under this Government, and we believe that British Steel and its superb workforce at Scunthorpe have an integral role to play in it.

[Martin Vickers]

I thank the Minister for her comments. While it is welcome that work is being done through DWP and so on to support potential redundant workers, the reality is that Jingye is not involved in meaningful negotiations. The Government have been critical of it in previous responses to my questions. It is very obvious that Jingye has cancelled the raw material orders that are essential to keep the furnaces going; those orders were due in mid-May. When I was at the steelworks on Friday, I was told that unless another order for iron ore pellets could be placed this week, it would be too late.

The Minister was somewhat reluctant to go down the nationalisation route when I raised the matter a couple of weeks ago. However, the majority opinion in the area and among leading politicians is that nationalisation on a temporary basis is the only solution to keep the furnaces burning come the middle of next month. Can the Minister therefore confirm that it is something the Government are actively considering? It would provide an opportunity to rebuild the industry, hopefully secure new private sector involvement and convince the customers—most notably Network Rail, which gets 95% of its rail track from the Scunthorpe works—that supply will continue.

I have come round to the view that nationalisation on a temporary basis is, in this instance, the only way. It will secure the jobs and secure a future for steel production in Scunthorpe. I urge the Minister not to rule it out, and indeed to commit to it.

[Sarah Jones]

I thank the hon. Gentleman for securing this urgent question and for his comments. I know we will continue to talk and have honest conversations.

Jingye is very much talking to us. As I said, I met Jingye with the Secretary of State and others on Friday, and we hope to do so again this week.

Our priority is respecting the workers, safeguarding jobs and retaining steelmaking. We have been clear in our belief that the best way forward is for Scunthorpe and British Steel to continue as a commercially-run business with private investment and with the Government acting in support, but I can tell the hon. Gentleman that no options are off the table.