The House of Commons has approved the final amendments to the Steel Industry (Nationalisation) Bill, clearing the way for Scunthorpe-based British Steel to be brought into public ownership. The bill received royal assent on Wednesday and is now law, Commons deputy speaker Judith Cummins told MPs.
Energy minister Chris McDonald said the government was "acting decisively and with a purpose in the national interest". The move comes after months of uncertainty over the future of the Scunthorpe plant, which employs thousands and is a cornerstone of the local economy.
“Steel nationalisation bill passes Parliament, allowing government to take British Steel into public ownership.”
The legislation was criticised by shadow business secretary Andrew Griffith, who argued that "nationalisation is a bad idea" and that the "real issue" for steel is Energy Secretary Ed Miliband's "addiction to ruinously high energy prices".
A spokesperson for the Department for Business and Trade said: "The Steel Act gives us powers to nationalise steel companies where it's necessary in the public interest, to protect a foundation industry that supports our critical national infrastructure, economy and defence." The spokesperson added: "We've been clear that we're strongly minded to use these powers in relation to British Steel."
North Lincolnshire Council leader Rob Waltham welcomed the news, calling it "significantly important" for Scunthorpe and the surrounding area. "It's really welcome news because it gives a certain future for steel-making in Scunthorpe," he said. "It's a significant part of our local economy and British Steel is critically important to our nation's infrastructure. You don't build much without steel, you don't deliver much without steel and, certainly, you don't defend yourself without steel."
However, Waltham warned that more investment is needed. "Nationalisation is about securing the future of the steel industry as we see it now but the government will never have enough money to invest in what we will need to make sure we've got a sustainable steel industry going forward."
Last year, Parliament passed special powers allowing the government to direct British Steel operations in Scunthorpe, stopping its owner, Jingye, from closing blast furnaces. But the company remained privately owned. In May, the government announced British Steel would be nationalised after it failed to reach a deal with the Chinese company.
Jingye has said it had begun the process of seeking compensation for nationalisation, having previously claimed the business was losing £700,000 a day. However, the UK government has said it could limit or refuse compensation. The nationalisation now moves from legislation to execution, with the government holding the power to take formal control of the steelmaker.