Labour accused of abandoning Port Talbot steel plant while considering nationalisation for Scunthorpe

Emily Price

Plaid Cymru has hit out at the UK Government over reports that it is considering nationalising British Steel to prevent its collapse – a move not extended to the TATA plant in Port Talbot where 2,500 jobs were lost.

On Tuesday (April 8) Sir Keir Starmer said all options remain on the table for the future of British Steel’s Scunthorpe plant amid suggestions it could be taken into public ownership to keep the last UK steelmaker afloat.

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.

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Importance

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", Sir Keir 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.”

The UK Government committed £500 million in September last year to help Port Talbot move to greener forms of steelmaking - though the deal will still lead to the loss of around 2,500 jobs.

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'No plans'

In December, Plaid Cymru Business and Trade spokesperson, Llinos Medi asked the Secretary of State for Wales, Jo Stevens, why the Government had estimated the cost of nationalising British Steel to safeguard Scunthorpe’s future while dismissing calls to nationalise Port Talbot.

Ms Stevens replied: "The Government have no plans to nationalise British Steel."

A month later, Wales' First Minister Eluned Morgan later mocked Plaid Cymru leader, Rhun ap Iorwerth, for suggesting the Port Talbot plant could be nationalised to prevent the loss of jobs, describing it as a "pipe dream".

Ms Medi MP said: "When Plaid Cymru called for the nationalisation of Port Talbot to safeguard Welsh steel, Labour dismissed it without hesitation.

"Now, as the UK Government considers nationalising British Steel in Scunthorpe, Labour’s quiet acceptance of a Tory plan that cost 2,500 jobs in Port Talbot is nothing short of a betrayal.

"The people of Port Talbot will rightly ask why their jobs and community were not worth fighting for."

UK Industry minister Sarah Jones has 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.

Relief

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.

Ms 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."

Conservative leader Kemi 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."