The government’s Bill “ to nationalise steel” was designed as a Labour MP crowd pleaser. It always came with the strange lawyerly caveat that it only applied if in the public interest. It now emerges that it thinks nationalisation is not currently in the public interest, so it is a Bill designed to disappoint all those left wing ideologues who want state ownership.
I assume this means the government is desperately trying to get a deal with the Chinese owners. This was always going to be difficult after the UK government unilaterally took over managing someone else’s business. The Chinese would be understandably cross about this, and would see it as an opportunity to demand compensation. It was a stupid thing for the UK to do, possibly leading to the Chinese firm walking away from its responsibilities to the workforce and from the potential redundancy costs. Both the Chinese and the government thought the future was to close the blast furnaces and put in an electric arc plant with far fewer people. Their disagreement was merely over when to close the existing blast furnaces. After this failed negotiation the UK government then implied to the employees it wants to keep the blast furnaces open, but presumably only for a bit whilst they get someone to put in an electric arc plant instead as in South Wales.
This looks like another unholy government mess. The employees probably end up sacked. The blast furnaces probably will be shut down by this government. The Chinese will probably be given a load of taxpayer money to help pay their debts and losses. The taxpayer will definitely be sent huge bills. Maybe in the end they will claim it is at last fully nationalised. Then there will be a hunt to find a private sector partner to help manage to works and to put in a new electric arc investment.
This massive expensive state intervention looks set to fail. The powers in the Bill are wide ranging and apply both to taking over the shares in the company, and the property. They do include provision for compensation with an independent valuer.
May 23, 2026
Good Morning My Lord,
That clause is a real word salad, designed to confuse and offer the biggest opportunity to make it mean whatever is needed at anytime. I am sure someone will say at some point in the future, “I am clear” Dee dah Dee dah.
I am surprised the Chinese didn’t rip the government’s arm off to accept any deal to rid themselves of such a hugely expensive, loss making liability.
We do need to be able to make our own virgin steel especially given the problems in the world right now.
It’s a shame that Milliband has so much power and sway at present. That is the main obstruction to the UK producing it’s own steel. Until we are more pragmatic to single issues, rather than ideological, such as the new false religion of climate change, we will never be able to improve our nation’s position in the pecking order.
Perhaps one practical idea would be to acknowledge, that our existing steel plants, were built near to the vast quantities of coal needed to power them, and we could reopen a couple of mines and build a power station there solely to power the steel plant… Just a thought.
May 23, 2026
This has all the hallmarks if negotiating with the EU. Putting Britains interest last and wanting to appease the Chinese. The Scunthorpe site is worthless so even thinking of paying compensation is moronic. I’m sure the same civil servants working on it are the ones who came up with the Chagos fiasco
Reply The politicians insisted on this fiasco. The civil servants gave advice against it resulting in a written Ministerial override
May 23, 2026
Cliff
Perhaps some reporter may actually ask Milliband what his solution would be !
On another topic (reported by BBC News) suggests that the Red Arrows from this year will be completing displays with seven aircraft instead of nine, apparently to try and preserve the use of the aircraft until 2030 when the present aircraft will be time expired after many decades of use.
Replacements have not yet been confirmed/ordered, and the one British Company which was working on replacements has now gone into administration. Thus looks like our flagship display team which promotes our Country and armed services Worldwide, may be using foreign designed and manufactured aircraft from 2030.
i wonder if Milliband will insist they should be battery powered, like the car deadline. !
May 23, 2026
Indeed doubtless in Miliband’s World future battle fields will have wind farms solar panels and recharging stations. Doubtless the two sides can play football during recharging (might be a long game if no wind)
Is Ed Miliband so deluded that he actually believes the total drivel he pushes. Or does he know it is lunacy, hate the UK and has some other motives?
Although Ed read PPE he did pass half decent A levels in Maths, Further Maths and Physics so surely he is bright enough to know full well his agenda is complete lunacy. It does not even reduce CO2 (in the main just exports it and often increases it and gives us energy costs that wreck the economy). Not that CO2 tree and plant food is a real problem anyway just a vastly exaggerated one – for evil political or religious reasons I assume.
May 23, 2026
Build a power station!! Given the performance on HS2 building anything by this Government will cost the earth and take forever
May 23, 2026
“Until we are more pragmatic to single issues, rather than ideological, such as the new false religion of climate change, we will never be able to improve our nation’s position in the pecking order.”
If Net Zero wasn’t sabotaging our energy and destroying our economy and national security CO2, plant food upon which all life on the planet depends, would not have been falsely accused of being a pollutant and there would be no contrived climate crisis. Just the awareness that climate is always changing and that we have some mild warming out of the Little Ice Age towards the warmer periods experienced since the last ice age ended 11,000 years ago as evidenced by receding glaciers revealing 7000 year old tree stumps and 5000 year old human artefacts.
https://www.livescience.com/4702-melting-glacier-reveals-ancient-tree-stumps.html
https://www.bbc.co.uk/reel/video/p0gl9tq4/watch
May 23, 2026
This is a zombie government with up to 3 years of life remaining, threatening the UK with all the wrong it does. Apparently, in the game Minecraft you can cure a zombie villager by throwing a Splash Potion of Weakness at it and feeding it a Golden Apple.
If only those who allowed such a government to come into existence could do something similar to prevent it destroying the lives of all British citizens.
May 23, 2026
@Bloke – with up-to 3 years of life threatening term remaining
May 23, 2026
Very few of us know enough detail around the events that led to a state intervention in the Scunthorpe Steel.
to make any informed comment.
What we can say is, the demise of British heavy industry and manufacturing in general is a crisis brought about by flawed and very dangerous energy policy from this government and the preceding Tory administration.
The celebrations that were on display as the cooling towers of yet another sound electricity generating plant were blown up was very revealing and frightening to watch.
We now have the most expensive energy in the developed world. Who thinks it is going to be possible to run high energy demanding manufactures here in the UK when world production is a fraction of our costs?
The Chinese take over at Scunthorpe was always going to end in closure on economic grounds. So the real question is, why did government allow that ownership change knowing full well it would end in closure?
May 23, 2026
@Rod Evans – it allowed the UK Parliament to throw lots of hard earned taxpayer at the Chinese government for free
May 23, 2026
Surely it is cheaper to buy British Steel for public sector projects on a cost plus operational percentage basis
May 23, 2026
NS
Not when the costs aren’t controlled.
\ understand HS2 is/was on a cost plus small percentage basis, and thus deliberately over engineered by those completing it ” just in case” !
May 23, 2026
Time and time again it is obvious that this government spent 14 years in opposition researching nothing
They will never learn
How do you do that ?
May 23, 2026
The government certainly does need a costed plan for the steel plant at Scunthorpe. Labour have put a lot of political capital into saving British Steel, which would make it very difficult for them to shut the blast furnaces now. Without Jingye’s debt repayments the company’s losses will reduce and who knows, maybe they can turn it round into profitability. Starmer’s team say they want a private sector partner. If so, they need to be very careful who they choose.
The Queen Bess furnace is indeed old, but could continue for many years without replacement. British Steel was forced to close the Queen Anne blast furnace at Scunthorpe last year after Jingye used poor quality coal (which damaged the lining), demonstrating their incompetence in steelmaking. Much of the alleged £1.3 billion loss Jingye made last year was the subsequent re-lining and restarting costs for the Queen Anne blast furnace. This furnace is now effectively brand new and will operate more efficiently with the new control system
Both blast furnaces run on cheap coal imported from Australia and the plant has secured a 337,000 ton order for rail track steel from the UK. The plant is close to the source of cheap wind electricity from the N Sea and if managed in-house using the experienced British workforce, will quickly return to profitability. Particularly if the debt that Jinye loaded the company is taken out of the equation.
The ability to make virgin steel is a strategic industry for this country. If it has to be re-nationlised, so be it
Reply A misleading account. Jingye made a mistake with coal in 2024 at Queen Anne but had remedied this by January 2025, well before UK state takeover. None of the state money has gone on relining.The UK state has not taken over the company so does not own past debts.
May 23, 2026
“The plant is close to the source of cheap wind electricity from the N Sea and if managed in-house using the experienced British workforce, will quickly return to profitability”
It’s coal fired SG – so I have to ask “So What?”
May 24, 2026
@IanT
Scunthorpe needs lots of electricity to run the plant, motors, conveyor belts, offices, lighting, extraction etc.
This weekend they will be running on free solar electricity during the day, one of the benefits of net zero
May 23, 2026
Interesting conversation with the owner of a Thames River Cruising Company this week.
New regulations have cost them £200,000 for this season, and a delayed start..
Also Coal now not available from Wales for a historic steam boat, so they now import it from Columbia, said it was very poor quality for both burn and emissions, but not many other options if they wish to keep the boat operational.
More regulations, More self harm.
May 23, 2026
“The plant is close to the source of cheap wind electricity from the N Sea and if managed in-house using the experienced British workforce, will quickly return to profitability.”
Coke is required to make virgin steel and the blast furnace needs to be run 24/7. Even if an EAF was attempted to be used to make virgin steel using hydrogen it could not work with chaotically intermittent supplies of electricity from wind turbines.
May 23, 2026
May as well shut this last remaining steel mill. The energy costs of running it are crippling.
Tell the Chinese we’ll buy all our steel from you now as we buy everyting from you anyway.
All thanks to the lunatic policies of Starmer, Labour and chief jobs/industry destroyer Mad Ed Miliband who began the headlong rush to renewables without considering the consequences.
May 23, 2026
The zealots Including May and Johnson also refused the development of the Cumbrian coalfield which produced ideal coal for steel. Now we have the highest industrial electricity costs, we may as well close the electric scrap furnaces and buy Chinese. The Chinese owners of Scunthorpe must have been surprised by the degree of stupidity.
May 23, 2026
No reasons that energy costs in the UK should be higher than in China coal is easy and cheaper to transport. The only reason is Ed’s, Theresa May’s, Cameron’s, Boris/Carrie, Sunak, Starmer’s… mad deluded religions or evil anti-UK agendas!
Reeves poised to tax cash held in stocks and shares Isas
Chancellor to impose 22pc levy on cash interest as part of ‘anti-circumvention rules’
Inflation robs people of any real interest anyway so this is another tax at more than 100% of profit – another wealth tax. Yet more doom loop economic insanity from the deluded vandal Rachael Reeves!
May 23, 2026
If it moves tax it, if it stands still tax it, if it breaths tax it, they even tax you when you stop breathing !
No wonder those with money are leaving the Country in droves, which is the real reason net migration figures are showing a reduction.
May 24, 2026
Tax payers leave net benefit claimants arrive – the doom loop continues.
UK public sector borrowing last month hit the highest total for April since the Covid pandemic in 2020, highlighting the challenges facing the government.
Borrowing, the difference between spending and income from taxes, was £24.3bn last month, official figures showed, which was up £4.9bn from a year earlier and higher than expected.
May 23, 2026
What a mess!
Less incompetence has brought governments down, but this one doesn’t eve give a hint of the embarrassment that should be shaking their resolve to screw up.
Our lack of capacity to produce steel is down to the one major labour policy that over-rides everything else – as long as that continues and red Ed has his way, nothing else matters, even the glories of nationalisation, even a cornerstone of the hard left will not shake the urgency to pursue this manic pathway to hell.
May 23, 2026
Using modern thinking & speak ‘reciprocity’ is needed when it comes to the politics related to trade. The Chinese firm operating the steel works in Scunthorpe should be compelled as it is with UK companies operating in China to ensure there is 50% local (UK) ownership, and a transfer of IP and technology to the UK.
Allowing foreign ownership to companies that are protected in their ‘home’ markets will always end in tears. The logical business case from these purchases, by the purchaser, is to run them down and then back-fill the demand with produce from their own protected facilities. Always a loss, a massive loss in even more jobs and revenue – and the UK Parliament pays them to do it!
When looked at all these situations, the purchase has always had the purpose to remove competition first for the benefit of the purchaser, then earn money for their own nation first.
What the UK Parliament refuses to do is review, think ahead and understand the game. The UK Parliament is also in neglect, as this ‘salami slicing away’ has placed the UK under the control of the political whims of Foreign Governments, the UK’s safety, security, its self-reliance and resilience. In a lot of these situations the UK Parliament has thrown away the Countries own strategic defence capability. Don’t MPs even know what their duties and responsibilities are?
May 23, 2026
This new Labour lot has not learned anything from the calamities of the 1970s. Then as now, State control of anything means, at best, inefficiencies and loss of capital growth. Under PM Johnson, the Tories were in power when the factory was actually acquired in 2020; however, it was the Official Receiver who accepted the bid from China in 2019. It’s as though this Government and the last do not accept steel as vital to British Industry.
Allowing it to be controlled by the RED Chinese is as bad as allowing them control of our nuclear power stations!
Privatisation is a must, but why did we have to hand over FULL control of our vital and fundamental industries to foreign companies (Governments)? Energy and Water included!! Losing that control makes this country vulnerable to outside ‘interference’ and should not be acceptable. But……….who else in the world allows this, I wonder.
May 23, 2026
Yet another public sector idiocy was announced several days ago.
Nine years after the event in 2017 after a colossal inquiry consuming the time of a huge number of Police Officers (better deployed in getting burglars and other criminals off the streets) they have announced they will send their proposals to prosecute 57 individuals and 20 companies for the unintended deaths consequent upon the Grenfell Tower fire to another public body, the Crime Prosecution Service to deliberate on that for very many months.
Why can’t public sector officials start being rational and just work out that Grenfell was a freak accident that could not reasonably have been predicted nor sensibly avoided? The proof of that is among thousands of supposedly similarly clad high rise buildings in Britain and probably tens of thousands abroad there have been no similar mass fatalities.
I wonder (but doubt) if any of the 57 people facing prosecution are fire officers because if anybody should face blame it is those running the fire service for prioritising manpower over necessary equipment. Part of the problem was (unlike in some foreign cities) they had no ladders extending above 10 storeys which is ridiculous in modern London and apparently smoke hoods since introduced were then not available. To top it all fire service officials have since caused massive alarm and suffering and probably many more than the 72 deaths at Grenfell by making a million homes unsaleable (none of them mine) and virtually worthless by insisting on hugely costly and proportionately unreasonable ‘remedial’ works to cladding just to supposedly prevent this particular kind of freak accident.
At every level, at least in the public sector, this country is being administered by idiots!
May 23, 2026
394 ‘illegal immigrants’ invaded the UK yesterday 22nd May 2026 …not reported on Sky or BBC news