Industry Backs Government's Steel Takeover
In a pivotal response to the British Steel (Special Measures) Bill, the Confederation of British Industry publicly endorsed the UK government's emergency decision to take temporary control of British Steel. The statement, issued by John Foster, Chief Policy & Campaigns Officer at the CBI, calls the move a “necessary outcome of last resort” to safeguard the nation’s steelmaking capacity, which is now seen as integral to national and economic security.
Preventing Industrial Atrophy in Scunthorpe
British Steel’s blast furnaces in Scunthorpe, now under immediate threat of closure due to halted operations by Chinese owners Jingye Group, are the last remaining blast furnaces in the UK. If extinguished, they would be nearly impossible to reignite, risking the total loss of the country’s ability to produce virgin steel. Foster’s remarks underline that allowing these critical facilities to go dark would cripple the UK's manufacturing independence at a time of international volatility.
Steel’s Crucial Role in UK’s Growth Mission
Foster aligned the CBI’s support for the emergency bill with the government’s broader “Growth Mission.” This mission includes ambitious plans for national infrastructure projects: from airports and homes to transport networks and energy grids. Steel, as the backbone of these projects, cannot be left dependent on unstable global supply chains or foreign tariffs. The ability to produce steel domestically is positioned as non-negotiable for future growth.
Eyes on the Future: Transitioning to Electric Steelmaking
While the bill is a short-term intervention, Foster encouraged a long-term strategic approach. As the UK pushes toward a greener economy, the steel sector must evolve, and this includes transitioning from blast furnace technology to cleaner, electric arc furnace methods. He stated that ensuring “a sustainable future of steelmaking” will require not just rescue operations, but robust planning, investment, and innovation in green technology.
Geopolitical Volatility & Economic Sovereignty
The CBI’s backing also reflects broader concerns about resilience in supply chains, especially as the world navigates a volatile geopolitical landscape. With increasing tariffs, shifting trade dynamics, and energy insecurity, domestic capacity in strategic industries like steel becomes essential. Foster pointed to the risks of relying on imports, which may be disrupted by protectionist measures or diplomatic tensions.
Beyond Nationalisation: A Reimagined Industrial Strategy
Though the Steel Industry (Special Measures) Bill falls short of full nationalisation, it reopens the national conversation on industrial sovereignty and public-private collaboration. The CBI's position indicates the private sector's willingness to support bold interventions, as long as they lead toward modernisation, competitiveness, and long-term industrial stability.
Key Takeaways:
• CBI called the government’s control of British Steel a “necessary outcome of last resort.”
• The decision is seen as crucial to preserving the UK’s primary steel production capability.
• Scunthorpe’s blast furnaces are the last of their kind in the UK; shutting them down would cause irreversible damage.
• The UK’s “Growth Mission” for infrastructure demands steady access to domestic steel.
• Steel transition to electric methods must be supported for future sustainability.
• Tariff volatility & global instability make local steel production more vital than ever.
• The emergency move avoids complete dependence on foreign-controlled supply chains.
• A sustainable industrial strategy must include modernisation and green innovation in steel.
• CBI supports long-term collaboration between government and industry for national resilience.
