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.