Prime Minister Sir Keir Starmer has said all options remain on the table for the future of British Steel’s Scunthorpe plant amid suggestions the UK could nationalise the company.
British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant and the government has been talking to the company’s Chinese owner Jingye.
There have been calls for temporary nationalisation amid fears of thousands of job losses.
The prime minister said he understood the importance of the steel plant as he was quizzed by senior MPs at the Commons Liaison Committee.
“Therefore we will keep talking.
“We have made an offer, but all options are on the table in relation to Scunthorpe.
“I think it’s really important and we’re in the middle of those discussions.”
Asked what he meant by “all options,” Starmer replied: “I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment.
“I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.
“But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.”
It comes amid media reports that the prime minister is “seriously considering” nationalising the company amid the fallout from U.S. President Donald Trump’s tariffs.
Conservative Party leader Kemi Badenoch earlier said that nationalising British Steel must be a “last resort.”
Industry minister Sarah Jones hosted a meeting of the Steel Council with the chief executives of Tata, Liberty, and British Steel as well as trade union leaders and the trade association UK Steel.
She sought to reassure the industry as the first payments from an energy cost relief scheme for the industry are due to be paid next month.
The Network Charging Compensation scheme payments are expected to give businesses more than £15 million of relief in May and more than £300 million during 2025.
Jones said: “We know this is a concerning time for our steel industry in the face of global challenges.
“That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth, and power the modern economy.
“This government will always stand up for UK steelmaking, and where others may talk tough, we are acting, with money ready to go to back up British industry.
“With our steel plan we’re placing it at the heart of our growth mission, and we’ll keep all options on the table to help steel in the UK thrive and deliver on our Plan for Change.”
Badenoch said the Scunthorpe steel plant was “in peril” because of Labour’s “wrong choices.”
“Nationalisation has got to be a last resort,” she told reporters during a visit to Chemring Countermeasures in Salisbury.
She added: “We need steel production in this country.
“It is important for national resilience.
“But as I said, whether it’s with the jobs tax, what they’ve been doing all around the economy, energy costs in particular, that’s why we’re not having steel companies wanting to produce it.
“Our energy costs are too high and Labour is making those costs even higher.”
