Powers to nationalise the steel industry are now law after the Steel Industry (Nationalisation) Bill received royal assent on Wednesday, bringing Scunthorpe-based British Steel a step closer to public ownership.
The House of Commons approved a number of amendments made in the House of Lords on Tuesday, and Commons deputy speaker Judith Cummins confirmed the bill had become law the following day.
“Bill to nationalise British Steel becomes law after royal assent, clearing way for public ownership.”
Energy minister Chris McDonald said the government was "acting decisively and with a purpose in the national interest". The move was immediately 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 Department for Business and Trade spokesperson 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. We've been clear that we're strongly minded to use these powers in relation to British Steel."
North Lincolnshire Council leader councillor Rob Waltham welcomed the news as "significantly important" for Scunthorpe and the surrounding area, but warned that more still needed to be done to secure its long-term future. "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. 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."
The legislation follows special powers passed last year that allowed the government to direct British Steel operations in Scunthorpe, stopping its owner, Jingye, from closing blast furnaces, though the company remained privately owned. In May, the government announced it would nationalise British Steel after failing 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 of British Steel marks a new chapter for the industry, but questions remain over whether public ownership can provide the investment needed for a sustainable future.