The government will table a bill to take control of British Steel as MPs are recalled from recess for an extraordinary Saturday sitting to debate the future of the beleaguered firm.
Downing Street on Friday stopped short of saying it would nationalise the firm, but said its emergency bill will give ministers “the power to direct steel companies in England, which we will use to protect the Scunthorpe site”.
It means MPs will be recalled on a Saturday during recess for the first time since the Falklands War began in 1982,
Talks have been ongoing in a bid to secure the future of British Steel and prevent heavy job losses.
The Chinese owner of the Scunthorpe-based business plans to close the blast furnaces and switch to a greener form of production.
And, announcing the recall, a Downing Street spokesman said: “The prime minister has been clear, his government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers.
“Tomorrow Parliament will be recalled to debate the Steel Industry (Special Measures) Bill.
“The Bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site. It enables the UK government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports.
“We have been negotiating with British Steel’s owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the UK. All options remain on the table.”
Parliament closed for the Easter recess on Tuesday, but MPs will be recalled on Saturday to discuss plans for the company.
Ministers have said all options are on the table for its future, including nationalisation, over concerns its closure would leave the UK without any domestic virgin steel makers.
A message sent to Labour MPs, seen by The Independent, said they will be asked to support the government passing “emergency legislation”, with whips demanding to know their locations and whether they will be available to vote.
Business and trade Secretary Jonathan Reynolds and officials met with the chief executives of Jingye and British Steel on Wednesday for discussions on steelmaking in Scunthorpe.
The Chinese firm has said it has invested more than £1.2 billion into British Steel to maintain operations and claims it suffered financial losses of around £700,000 a day.
A statement after the meeting said “both sides welcomed continued cooperation in talks to find a way forward”.
Talks were set to resume on Friday, with the government coming under mounting pressure to nationalise the plant.
The Saturday sitting will begin at 11am, when MPs will debate “legislative proposals to ensure the continued operation of British Steel blast furnaces is safeguarded”, according to the office of Sir Lindsay Hoyle, the Commons Speaker.
In a letter to MPs, Sir Lindsay said he was satisfied the “public interest” requires the recall.
Roy Rickhuss, general secretary of steelworkers’ union Community, said: “We welcome this decision to recall Parliament.
“It is in the national interest that a solution is found to secure a future for British Steel as a vital strategic business.
“We can’t allow Britain to become the only G7 country without primary steelmaking capacity.
“In the absence of a deal with Jingye to continue blast furnace operations at Scunthorpe as part of a transition to greener steelmaking, it is essential that we see urgent action taken to bring British Steel into public ownership.”
Reform UK leader Nigel Farage called for the Government to nationalise steelmaking in Scunthorpe by the end of this week after he toured the giant plant on Tuesday.
Responding to Downing Street’s announcement, he said: “China has no interest in keeping the steelworks open. Reform have been clear from the start that the only option we have to save this vital strategic asset, and thousands of jobs in the process, is to nationalise British Steel.
“We are calling on the government to do the right thing tomorrow and bring it back into public ownership.”
