The British government has taken operational control of a British Steel plant in Scunthorpe, with the possibility of nationalization on the table. The plan was pushed through procedure at record speed – it was finalized over the course of one weekend – after it became apparent that the factory’s owner was phasing down production.
The current owner, Chinese company Jingye, stated that it remained open to dialogue with the government to reach a resolution. Chinese officials also appealed to their British counterparts to treat the matter as an economic, not political, issue. However, Britain’s Business and Trade Secretary Jonathan Reynolds claimed Chinese involvement in domestic steel production is no longer welcome, quoting national security concerns and indicating a shift in policy.
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“We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry,” said Prime Minister Keir Starmer. His cabinet has faced substantial criticism in recent weeks over plans for austerity and expanded privatization in key sectors, including healthcare. Comments from Starmer’s cabinet members indicate that the intervention in Scunthorpe should not be seen as a thoughtful shift in policy, but rather as a last resort failing new private investment.
“The government has been forced into this rather than opting for it as part of an economic strategy,” wrote the progressive network Momentum on X. Similarly, activists from the We Own It campaign reminded the public that five years ago, Keir Starmer pledged to return essential services – including water, rail, and post – to public ownership. “Public services are also national strategic assets,” noted Cat Hobbs from We Own It, appealing to the government to expand nationalization plans.
Demands for expanding public ownership
The move to take control of the Scunthorpe plant was supported across the political spectrum. However, some progressive voices warned that the government was failing to fully seize the opportunity. Independent MP Jeremy Corbyn called for full nationalization of the steel industry, in line with his ongoing support for public ownership across key sectors. Politicians from Wales and Scotland, including members of the Welsh Communist Party, raised concerns about double standards, pointing out that steel plants at risk of closure in other parts of Britain had received far less attention as recently as in 2024, putting thousands of jobs and entire communities in danger.
Labour officials attributed the difference in approach to “changed geopolitical circumstances” – likely including Britain’s recent plans to boost military spending. While steel from Scunthorpe is primarily used for infrastructure projects such as rail, the overall steel industry will certainly play a role in military procurement.
Some trade unions spelled out this connection when they endorsed the intervention and referenced its importance in the context of so-called defense. They warned that the loss of domestic capacity to produce virgin steel would be “catastrophic at any time, let alone in the current era of geopolitical instability and volatility.” A representative of the Community trade union emphasized: “Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country.”
Although the move to take control of the Scunthorpe plant may offer an opportunity to promote public ownership and protect jobs, the government’s reluctance to expand this approach indicates lacking political will. Without a true commitment to popular demands for nationalization, the intervention risks being reduced to a footnote in Starmers’ armament agenda.
