In a rare Saturday sitting (only the sixth such occasion since the Second World War[1]), Parliament was recalled from Easter recess to pass the Steel Industry (Special Measures) Bill.
In a landmark intervention, the UK Government has introduced the Bill to safeguard domestic steel production, particularly in light of the threatened closure of British Steel’s blast furnaces in Scunthorpe. The legislation was formally introduced during an emergency sitting of Parliament on 12 April 2025, underscoring the urgent need to preserve strategic industrial capacity. This move followed Jingye Group’s (British Steel’s Chinese owner) announcement that it intended to shut down the furnaces, despite a £500 million co-investment offer from the Government to support a green transition. In response, the Government acted decisively to prevent what Business Secretary Jonathan Reynolds described as a managed decline of a sector critical to the UK’s national interests.[2]
What Powers Does the Steel Industry Bill Give the UK Government?
The Steel Industry (Special Measures) Bill gives the UK Government a suite of temporary powers to intervene directly in the operations of strategically significant steelmaking facilities. These powers are designed to ensure that production can continue at the Scunthorpe site and that vital supply chains are maintained.[3]
Specifically, the legislation allows the Secretary of State to issue directions to British Steel regarding the management of its operations. This means the Government can require the company to continue running the blast furnaces, even if the owners seek to wind them down. In addition, the Bill empowers the Government to intervene in the supply of raw materials required for steel production, such as coke and iron ore, ensuring that the site remains operational.[4]
Crucially, the Bill also contains protections for employees. It ensures that workers who continue to operate the furnaces under government instruction will not face legal action or retaliation from their employer. This is an important safeguard for union members and skilled personnel who may otherwise be caught in a legal and professional bind.[5]
These powers are time-limited and subject to parliamentary oversight. They are intended as a short-term intervention while a longer-term plan is developed to secure the future of UK steelmaking.[6]
Why Is British Steel’s Scunthorpe Site So Important?
The Scunthorpe site is a linchpin of the UK’s steelmaking capability. It is home to two of the country’s remaining blast furnaces and is responsible for producing high-grade steel used in infrastructure, transport, and defence applications. Without Scunthorpe, the UK would face a significant gap in its ability to produce steel domestically.[7]
Steel from Scunthorpe is used in critical infrastructure projects such as railway tracks, bridges, and roads. It is also vital for the construction of military equipment, making it a key asset in national defence planning. The loss of this site would therefore not only result in thousands of job losses—directly and across the supply chain—but also undermine the UK’s industrial resilience and economic independence.[8]
During the emergency parliamentary debate, MPs from across the political spectrum echoed these concerns. The Business Secretary, Jonathan Reynolds, reiterated that the decision to intervene was not just about preserving jobs, but about protecting the UK’s sovereign capacity to manufacture a material that underpins virtually every sector of the economy.[9]
How Does This Bill Fit into the UK’s Green Steel Strategy?
While the Steel Industry Bill provides an immediate solution to a pressing crisis, it is also part of a broader strategy to transition the UK steel sector to more sustainable methods of production. The Government remains committed to decarbonising the industry in line with its net-zero targets, and the Scunthorpe site could become a testbed for green steel innovation.[10]
Earlier this year, the Government announced the creation of a £2.5 billion Steel Investment Fund. This fund is designed to support the development of low-carbon steelmaking technologies, including electric arc furnaces and the use of hydrogen as a reducing agent—methods that produce significantly fewer emissions than traditional blast furnaces.[11]
The Government’s offer of £500 million to British Steel was intended to be a first step in this transition. Ministers have made clear that they still wish to work with Jingye Group—or any future operator—to transform Scunthorpe into a hub for green steel production. The vision is for the UK to lead Europe in clean industrial growth, protecting the environment while maintaining economic competitiveness.[12]
What Role Will the New Steel Council Play?
To support this long-term transformation, the Government has established a new Steel Council that will bring together stakeholders from across the industry. The Council will include representatives from steel producers, trade unions, supply chain businesses, technical experts, and government departments.[13]
This group will be responsible for guiding the future of the sector, including the design and implementation of the national Steel Strategy. Among its core tasks will be advising on how best to deploy the Steel Investment Fund to modernise facilities, invest in skills, and support affected communities.[14]
By creating a forum for collaboration between public and private sectors, the Government hopes to ensure that its steel policy is both economically viable and socially responsible. The Steel Council is expected to play a vital role in aligning industrial strategy with the UK’s broader goals for economic growth and climate action.[15]
What’s Next for the UK Steel Industry?
With the Steel Industry (Special Measures) Bill now in force, the immediate priority is to stabilise operations at Scunthorpe and prevent the loss of critical infrastructure. Government officials are continuing negotiations with Jingye Group, but Ministers have made clear that if necessary, alternative ownership arrangements will be pursued to keep the furnaces running.[16]
Looking ahead, the UK faces a choice between managed decline and strategic investment. The Government has committed to the latter, with a plan to transition to green steel, reduce dependency on foreign suppliers, and support high-skilled jobs across industrial regions.[17]
The next few months will be crucial in determining whether the UK can chart a new course for its steel industry – one that is cleaner, more secure, and internationally competitive.
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[1] London Evening Standard, Saturday sitting is only sixth of its kind since Second World War, 11 April 2025, Link
[2] Department for Business and Trade, Government acts to save British steel production, 12 April 2025, Link
[3] Department for Business and Trade, Steel Industry (Special Measures) Bill Explanatory Notes, 12 April 2025, Link
[4] ibid
[5] ibid
[6] ibid
[7] Department for Business and Trade, Government acts to save British steel production, 12 April 2025, Link
[8] ibid
[9] Jonathan Reynolds MP, Hansard, 12 April 2025, Col. 839, Link
[10] Department for Business and Trade, Government acts to save British steel production, 12 April 2025, Link
[11] ibid
[12] ibid
[13] Department for Business and Trade, Government sets out plan to secure the long-term future of steelmaking and safeguard steel communities, 7 January 2025, Link
[14] ibid
[15] ibid
[16] Department for Business and Trade, Government acts to save British steel production, 12 April 2025, Link
[17] ibid
