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Government Races to Secure Raw Materials for Scunthorpe Steelworks
Ministers are urgently working to ensure the continued operation of Scunthorpe steelworks, a critical component of the UK steel industry. Exchequer Secretary James Murray has affirmed the government’s commitment to delivering essential raw materials to the site, stating confidently that supplies are within the country and on their way to keep the blast furnaces running.
Minister Asserts Confidence in Securing Materials for Scunthorpe Blast Furnaces
Exchequer Secretary to the Treasury, James Murray, has declared that government officials are actively striving to supply raw materials to the Scunthorpe steelworks. This intervention aims to maintain the operation of the plant’s crucial blast furnaces. Murray insisted that the necessary supplies are already located within the UK and conveyed “confidence” in their imminent arrival.
Speaking on Times Radio earlier today, Murray explained that government personnel have been deployed to the steelworks. “Their function is to guarantee that we exhaust every possible measure to deliver these raw materials to the blast furnaces promptly and ensure uninterrupted activity,” he stated.
He elaborated, “The raw materials, the shipments, have reached the UK and are in close proximity. Concerns regarding their delivery to the blast furnaces are the current focus of officials.”
Later, during an interview on the Today programme, Murray reiterated:
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“I am assured in our actions. I am assured we are exhausting all avenues to get the raw materials on-site and maintain the blast furnaces’ function.”
“The imperative to sustain operations is to allow us the opening to guarantee a promising horizon for steel manufacturing in the UK. Ultimately, our goal is to onboard a new private sector partner to establish a lasting future for the industry in this nation.”
Pressed by interviewer Nick Robinson regarding the status of raw material delivery, the Ealing North MP remained reserved. “We are unequivocally committed to securing the arrival of raw materials. Commercial processes presently underway constrain the extent of my disclosures,” Murray explained.
Robinson proposed that the government might be apprehensive that suppliers could inflate prices if they were aware of the precariousness of the plant’s operational status.
Government Addresses China Relations Amid Steel Crisis
Treasury minister James Murray has voiced criticism of past Conservative administrations’ approaches to Sino-British relations. He asserted that the present Labour government must adopt a “cool-headed, clear-eyed, and pragmatic” approach in its dealings with China, citing significant economic ramifications.
In a direct question on LBC radio about whether the British Steel predicament necessitates treating China as a hostile entity akin to Russia or Iran, Murray responded, “No. China is not a hostile state.”
He further clarified:
“China is a nation with which we maintain a substantial and vital relationship. We must be pragmatic in our approach and acknowledge the diverse modalities of our engagement with China across various facets of our bilateral ties.”
“China stands as the world’s second-largest economy and the UK’s fourth-largest trading partner. Approximately 450,000 British jobs are contingent upon exports to China, hence, engagement is essential.”
“However, reflections on recent years under preceding governments suggest a possible naiveté and lack of vigilance during the Cameron and Osborne era, while the latter phase of the previous administration was characterized by an absence of engagement altogether.”
“Neither extreme represents the optimal strategy. Our approach must be measured, perceptive, and pragmatic, recognizing domains for cooperation, competition, and challenge within the relationship.”
Opposition Party Challenges Government on British Steel Strategy
Shadow business minister Harriett Baldwin faced intense scrutiny on Sky News, enduring repeated questioning regarding the prior Conservative government’s role in the British Steel crisis. The focus was on the 2019 sale of the company to its current Chinese owners, Jingye.
The interviewer stated to the West Worcestershire MP that the interview was “a prime opportunity for you to acknowledge to Sky News viewers that, with hindsight, it was an error and to consequently express support for the incumbent government. Are you prepared to take that stance this morning?”
Baldwin responded:
“Well, I believe the matter underwent rigorous scrutiny at the time. The acquisition was welcomed by trade unions. We must acknowledge that the circumstances of 2025 are distinct from those of 2019. Our focus must be directed towards securing the future of this essential national infrastructure and industry within our nation.”
When asked if the opposition would endorse complete nationalisation of the Scunthorpe plant as an alternative to its potential collapse, Baldwin said:
“I believe nationalisation should consistently remain a recourse of last resort. However, a period of government ownership preceded Jingye’s acquisition. Thus, while no option should be excluded, nationalisation should be considered a final measure.”
Upon further emphasis on the Conservative government’s role in the Jingye deal, Baldwin stated:
“The agreement was endorsed by both unions and local communities at the time. It is imperative to move beyond past events and concentrate on the future trajectory of this critical industry.”
She then accused the Labour government of “last-minute scrambling – scrambling to recall Parliament and now scrambling to manage a steel enterprise.” Baldwin asserted, “This situation underscores a failure in negotiation by the current administration.”
Baldwin was then questioned: “Is this symptomatic of a broader issue with Conservative privatisation policies? Examining Thames Water and the present situation, isn’t this a consequence of 14 years of Conservative governance?”
The MP replied:
“I believe there’s a general consensus, reflected in the chancellor’s contemporary discussions about infrastructure investment. She consistently seeks partnerships with private equity capital, aiming to channel personal and institutional pensions into infrastructure projects.”
“Private capital will invariably play a role in these organizations. This approach reduces competitive pressures on funding for schools and hospitals, sectors warranting exclusive public financial support.”
“Thus, private investment maintains a vital role, an argument, I contend, already validated.”
SNP Criticises Government’s Steelworks Intervention
The UK government’s intervention to maintain operations at the Scunthorpe blast furnaces has faced criticism from the SNP. They have drawn parallels they deem unfavorable to the handling of potential closures at the Grangemouth oil refinery in Scotland.
SNP Westminster leader Stephen Flynn challenged business secretary Jonathan Reynolds in Parliament concerning this matter on Saturday.
Labour MP for Midlothian, Kirsty McNeill, also serving as parliamentary under-secretary of state for Scotland, addressed the dispute on BBC’s Good Morning Scotland radio.
Asserting that both the preceding Conservative administration in Westminster and the Scottish government lacked “any discernible industrial strategy,” she communicated to listeners:
“These circumstances diverge, underscoring why this interventionist UK government possesses an industrial strategy tailored to addressing specific challenges.”
“Contrast the swiftness with which they [the SNP] utilize social media and broadcasting platforms to voice grievances with their alacrity in safeguarding Scottish jobs.”
“Ultimately, their present discourse regarding Grangemouth is an exercise in grievance fabrication. Conversely, we have initiated decisive action from our very inception in government.”
Hong Kong Entry Denial Sparks Concern for UK Parliamentarian
Liberal Democrat MP Wera Hobhouse, barred from entering Hong Kong to visit her grandchild, contends her experience should serve as “a warning for all parliamentarians”. Her case suggests China maintains a concealed list of prohibited politicians.
Hobhouse, turned away by officials on Thursday, reported receiving no justification for the denial. She surmises it stems from her vocal stance on human rights abuses by China.
Speaking to Sky News, Hobhouse recounted that upon arrival, her husband was swiftly granted entry, while she was directed aside. The couple’s son, a university professor in Hong Kong, awaited their visit to see their three-month-old grandson.
“After roughly three hours, my husband received clearance, but I was denied entry and directed to return on the next available flight,” Hobhouse detailed.
The Bath MP stated that despite her “cooperative and amiable” demeanor, anticipating eventual entry, upon denial, she “expressed considerable frustration,” demanding an explanation. However, officials only offered, “We are deeply sorry, Madam, we understand.”
She emphasized, “No explanation was provided at any juncture. This opaqueness is profoundly concerning and should genuinely alert every parliamentarian. I received no prior indication of being on any blacklist.”
Related Coverage
UK MP refused entry to Hong Kong accuses China of ‘hidden blacklist’
British Steel Crisis Focus of Government Newsletter
The British Steel crisis is the main subject of today’s First Edition newsletter. Colleague Nimo Omer outlines the current situation:
Business Secretary Jonathan Reynolds now possesses emergency authority enabling him to compel British Steel to procure essential raw materials. The government will cover operational expenses, estimated by Jingye at approximately £700,000 daily in losses.
A failure to order sufficient coal and iron ore has resulted in a critical shortage of vital raw materials, immediately necessary for the plant’s continued operation. Absent these materials, furnace shutdowns become inevitable, increasing closure likelihood. Nevertheless, Reynolds has refrained from confirming whether British Steel will secure required raw materials in time.
Operational costs are projected to significantly deplete the government’s £2.5 billion steel fund. Reynolds projected that plant closure would incur economic costs of at least £1 billion, exceeding the anticipated losses from nationalization.
The business secretary did not accuse Jingye of intentional plant sabotage, suggesting “possible neglect.” The government does not anticipate Jingye re-entering negotiations. However, Reynolds noted that recent events have raised a “high trust threshold” for Chinese firms investing in key British industries.
Growing instability in global markets, particularly considering the Trump administration’s stance on European security and trade tariffs, may amplify government pressure to sustain the British steel sector.
Further Reading
Monday briefing: British Steel is in crisis – is nationalisation the answer?
Union Leader Accuses British Steel Owners of Working Against Business
Roy Rickhuss, general secretary of the Community Union since 2013, also addressed the government’s efforts to maintain operations at the Scunthorpe blast furnaces during a media appearance. He stated to BBC Radio 4’s Today programme:
“Regrettably, the Chinese owners Jingye have appeared to act against the business’s interests. They were neglecting to order raw materials, and further, refusing payments for pending supplies. They were even diverting raw materials elsewhere.”
“I believe Jingye’s strategy involved blast furnace closure, planning to import steel from China for processing in our mills, effectively transforming British Steel into solely a re-rolling facility.”
British Steel’s Scunthorpe facility employs approximately 2,700 individuals and remains the sole UK plant capable of producing virgin steel necessary for large-scale construction ventures.
Union Official ‘Reassured’ Raw Materials to Reach Scunthorpe Furnaces
Charlotte Brumpton-Childs, national officer for the GMB union, conveyed being “fully reassured” that raw materials are scheduled to reach the Scunthorpe blast furnaces. This delivery aims to secure their ongoing function.
Speaking on the BBC Breakfast programme, PA Media reported her statement:
“Following discussions with British Steel late yesterday, I am genuinely reassured. I am informed payment will be processed for coke located at Immingham Bulk Terminal, with unloading commencing within days. Government is also aggressively pursuing the acquisition of remaining raw materials currently en route by sea.”
Minister Justifies Use of Taxpayer Funds for Steelworks Bailout
Government minister James Murray has defended the administration’s choice to allocate taxpayer funds to support the Scunthorpe blast furnaces, as opposed to alternative public spending priorities.
In a discussion on BBC Radio 4’s Today programme, the Exchequer Secretary to the Treasury addressed inquiries about whether the funds could be better directed toward public services:
“Steel is fundamental to our national infrastructure ambitions. Realizing projects such as hospitals, 1.5 million homes, or Heathrow expansion necessitates steel.”
“Steel is a distinctly vital component of our transformative agenda, integral to national security. Supporting domestic steel manufacturing remains crucial, justifying our intervention.”
“We must guarantee the sustainability of UK steel production and concurrently reduce energy expenses for businesses.”
Government Downplays Wider Implications of Chinese Firm’s Conduct at British Steel
A government minister stated that while the owners of British Steel exhibited “unaccountable conduct,” this situation does not indicate wider systemic issues concerning Chinese firms’ participation in vital UK infrastructure.
James Murray, Exchequer Secretary to the Treasury, commenting on Jingye on BBC Radio 4’s Today programme said:
“The company under scrutiny regarding Scunthorpe has undeniably acted without accountability. Recent days revealed accelerated blast furnace closure plans, compelling swift legislative action.”
“However, one company’s actions do not represent all Chinese companies. We must emphasize the UK’s openness to global investment.”
Earlier on Times Radio, addressing comparable questions, Murray affirmed, “Our approach is clear – we welcome global investment and champion open trade. However, foreign involvement in critical infrastructure is subject to the most stringent scrutiny based on clearly defined principles.”
Minister ‘Confident’ Raw Materials Will Secure Operation of Scunthorpe Blast Furnaces
Exchequer Secretary James Murray has asserted the government’s ongoing efforts to supply raw materials to Scunthorpe steelworks to maintain blast furnace operations. He insisted supplies are within the UK and stated his “confidence” in their imminent delivery.
Speaking to Times Radio this morning, he reported government personnel were at the furnace. “Their mandate is to ensure we exhaust all efforts facilitating raw material delivery to blast furnaces promptly, guaranteeing continuous operation,” he detailed.
“The raw materials shipments have arrived and are located nearby in the UK. Officials’ current focus is addressing logistical considerations for delivering them to the blast furnaces,” Murray confirmed.
Speaking subsequently on the Today programme, Murray added:
“My confidence in our actions remains resolute. We are exhaustively committed to securing raw material delivery and sustaining blast furnace operations.”
“Sustaining operations offers the prospect of ensuring a viable trajectory for UK steel manufacturing. The ultimate objective is to engage a new private sector partner, securing a sustainable future for UK steel.”
When questioned by Nick Robinson concerning raw material status, the MP for Ealing North demurred. “Our objective to secure raw material delivery is unambiguous. Current commercial processes restrict further elaboration,” he stated.
Robinson posited government concerns regarding potential price inflation by suppliers, aware of the plant’s precarious operational state.
Live Updates: Scunthorpe Steelworks and UK Politics
Good morning, and welcome to our live UK politics coverage for Monday. Here are the key headlines:
- Government officials are actively working to deliver raw materials to Scunthorpe steelworks, aiming to keep blast furnaces operational, according to Treasury minister James Murray.
Stay with us for continuous updates throughout the day.