Keir Starmer breaks silence as MPs urgently recalled to London over crisis

Parliament will hold an emergency vote in a last ditch effort to rescue British Steel on Saturday following Donald Trump’s crushing tariffs hammerblow. MPs and Peers are expected to rush through legislation as Sir Keir Starmer warned the future of the vital industry “hangs in the balance” with Britain’s economic and national security “on the line”.

They will decide on a new law giving government powers to bring steelmaking under its control with taxpayers footing the bill. It could pave the way for British Steel to be fully nationalised to save it from collapsing entirely. All steel and aluminium imports to the US have been hit with a 25% levy, in another blow to the already struggling UK industry.

Chinese firm Jingye, the owner of British Steel, has refused to foot the bill for coal imports itself after announcing plans to shut operations at the last-remaining plant in Scunthorpe entirely.

Jingye said it has invested more than £1.2 billion into the industry and claims it suffered financial losses of around £700,000 a day.

The move risks 2,700 jobs and would make Britain the only G7 country unable to manufacture its own steel.

Sir Keir said: “As Prime Minister, I will always act in the national interest to protect British jobs and British workers.

“This afternoon, the future of British Steel hangs in the balance.

“Jobs, investment, growth, our economic and national security are all on the line.”

No 10 confirmed 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,” a spokesman said.

“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.”

MPs and Peers had Easter holidays cut short to be summoned back to Westminster for the historic vote.

In an indication of how seriously the Government is taking the issue, this is the first time Parliament has been recalled to sit on a Saturday since 1982, when MPs returned after the Falklands War began.

Other significant recalls during recent years included a midweek sitting during the summer recess in August 2021 to debate the evacuation from Afghanistan.

Kemi Badenoch, Leader of the Conservative Party said: "The Labour government have landed themselves in a steel crisis entirely of their own making. They've made poor decisions and let the unions dictate their actions.

"As Business Secretary, I negotiated a modernisation plan with British Steel to limit job losses and keep the plant running, including introducing an electric arc furnace in Teesside, similar to what we did with Tata at Port Talbot steelworks.

"However, the union-led Labour government have bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable. Keir Starmer should have seen this coming. But instead of addressing it earlier in the week when Parliament was sitting, their incompetence has led to a last-minute recall of Parliament.

"Conservatives like Martin Vickers MP and Teesside Mayor Ben Houchen have been warning about the issues at Scunthorpe, but Labour ministers thought they knew better. Now the British public can see the government scrambling for a solution to a problem they created and could have resolved months ago. It is inevitable that it's going to cost taxpayers a lot of money."

Last-ditch negotiations with British Steel's Chinese owners have seen the Government offer to buy emergency coal from abroad to keep Scunthorpe’s blast furnaces fired up.

But the move has sparked fury as it comes just months after bungling Energy Secretary Ed Miliband blocked a new UK coal mine - leaving Britain reliant on imported coal.

Tees Valley Mayor Lord Ben Houchen fumed: “The Government is now financially subsidising a Chinese-owned company by buying coal for them and importing it, all the while refusing to allow a new coal mine to be opened that would create British jobs.”

Labour is facing mounting pressure from steel unions, senior Tories and Reform UK to nationalise British Steel.

Liberal Democrat leader Sir Ed Davey called for “a serious plan for the sustainable future of domestic steel production”.

Sir Ed said: “With Putin’s barbaric war in Europe and Donald Trump’s disastrous tariffs causing economic turmoil, the future of steel production in this country is of real importance and nothing should be off the table in this matter of national security.

“Tomorrow must be seen as an opportunity to come forward with a serious plan for the sustainable future of domestic steel production. The public rightly deserves better than political opportunism and grandstanding.”

Nigel Farage, the leader of Reform UK, reiterated that he backed moves to nationalise the steel plant.

“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,” he said.

Mr Farage also called on the Government to retain and refurbish two blast furnaces, implement a long-term business plan, and acquire Liberty Steel Rotherham for its two electric arc furnaces.

Unions welcomed the move to recall Parliament.

Charlotte Brumpton-Childs, GMB union national officer, said: “GMB has long called for nationalisation as the only way to save the UK steel industry.

“Tomorrow looks like the first step in that process.

“The Business Secretary must be given huge praise for acting decisively to safeguard this vital industry and the thousands of jobs that rely on it.”

Roy Rickhuss, general secretary of steelworkers’ union Community, said: “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.”