UK MPs recalled to debate seizure of British Steel

(Sharecast News) - UK lawmakers will hold a rare emergency parliamentary session on Saturday to take control of British Steel and stop its Chinese owner closing the Scunthorpe plant in a move that could lead to nationalisation of the company. MPs will debate emergency laws at 1100 BST that will give Business Secretary Jonathan Reynolds authority to order the company - which is owned by China's Jingye - to buy the raw materials to keep two blast furnaces going at the plant and save 3,000 jobs. The taxpayer will take on purchase costs.

Jingye claims it is losing about £700,000 a day and maintains that the furnaces are unviable. Last year it rejected a £500m bailout plan put forward by the government.

Once stopped, the furnaces would be impossible to restart. Starmer on Friday said the future of British Steel "hangs in the balance".

A Downing Street spokesperson said: "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."

Reporting by Frank Prenesti for Sharecast.com