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The UK prevents the collapse of its steel industry

In a dramatic last-ditch bid to save Britain’s sole remaining major steel producer, Prime Minister Keir Starmer’s government has recalled Parliament from its Easter recess for an emergency Saturday debate on the nationalization of British Steel.

The theatrical move, announced by Downing Street and the House of Commons late on Friday, comes amid mounting fears that the blast furnaces at Scunthorpe — the industrial hub of British Steel’s activities — will be shut down for good in days.

The House will convene at 11 a.m. Saturday, marking only the 35th parliamentary recall since 1948, and the first since the emergency session on Afghanistan in August 2021. Lawmakers will vote on legislation granting the government powers to direct steel companies, a move aimed at keeping the Scunthorpe site operational and safeguarding thousands of jobs.

The law authorizes the government to direct English steel companies, which we will utilize to protect the Scunthorpe plant,” said a No. 10 spokesman. “It enables the UK government to maintain capability and ensure public safety. It also keeps all options on the table for the future of the plant and the jobs it sustains”.

The crisis follows a breakdown in negotiations this week between ministers and Jingye Group, the Chinese conglomerate that acquired British Steel in 2020. With no agreement reached, the specter of imminent closure has grown, especially following reports that Jingye has halted orders for key raw materials such as iron ore and coking coal. Without emergency deliveries, industry experts say, the Scunthorpe blast furnaces could make themselves obsolete – a point of no return for the plant.

British Steel already has a workforce of approximately 3,500 across its businesses, the majority within northern England at Teesside and Scunthorpe. Not only would the shutdown devastate those towns, but it would be a historic loss for the UK as well: it would be the sole G7 nation to lack primary steelmaking capacity on its soil.

The looming crisis has been compared to the rotting of Britain’s industrial power in the last decades of the 20th century. A byword for working-class toughness, Scunthorpe could become the symbol of an industrial policy turning point — and Starmer’s Labour government appears poised to act.

Trade unions, who have been agitating for increased state intervention in the sector, welcomed the recall warmly and called for passage of the bill quickly. “Nationalization seems to be the only logical option,” added one union official. “We stand to lose something precious.”

The potential shift to take British Steel into state ownership recalls past periods of nationalization, yet on this occasion the driving forces appear as much a matter of national security and industrial independence as they are one of economic doctrine.

The UK steel industry has faced long-term stresses from foreign overcapacity, power prices, and changing environmental policies. The closure of furnaces at Wales’ Port Talbot last year underlined the precarious state of the industry, before the effect of geopolitical tensions and trade issues — like tariffs under the Trump administration — kicked in.

With Britain teetering on the edge of steel dependence on foreign manufacturers, the stakes are existential. Saturday’s vote will determine whether or not the country can maintain an essential manufacturing capacity — or lose it forever.

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