Starmer Opens Path Toward Full Nationalization of British Steel
Prime Minister Keir Starmer pledged a step toward full nationalization of British Steel during a crucial speech on Monday designed to save his premiership.
Starmer described steel production as the “ultimate sovereign capability” and said his Labour government would legislate to give itself the power to take ownership of the company subject to a public interest test.
“In Scunthorpe, we’ve been negotiating with the current owner and a commercial sale has not been possible,” Starmer said. “Strong nations in a world like this need to make steel.”
It was the main policy unveiled in a speech that he hopes will fend off the threat of a leadership challenge, following a disastrous set of local elections last week.
Britain took de-facto control of British Steel just over a year ago to prevent its two furnaces closing, with the UK Treasury on the hook for losses in excess of £1 million a day.
Industry group UK Steel welcomed the move, describing the sector as a strategic national asset. British Steel is the last company in the country capable of using raw iron ore to produce so-called virgin steel, which plays a key role in defense supply chains and other industrial sectors.
The steel industry’s struggles have intensified in recent years due to high energy costs and a jump in tariffs triggered by the US.
“British Steel could be back in government hands for the first time since being sold off in 1988,” said a statement from the Department of Business and Trade. The power to nationalize “will be included in new legislation to be set out in the King’s Speech on Wednesday.”
A public interest test considers national security, the need for critical infrastructure and support for the economy.
bloomberg.com
