Raw materials 'near' British Steel site, minister says - as race to keep plant running continues

Raw materials to keep blast furnaces going 'are in the UK', says minister

 The future of British Steel is undoubtedly the hot topic dominating headlines in the world of politics this morning.

That's because the government passed emergency legislation to take control of Britain's last operating blast furnaces at a steel plant in Scunthorpe on Saturday. If you're at all confused about this one, then we have a full explainer for you here. 

But what are all the political parties saying? And for once, is it fair to say they broadly agree on how to address this issue? 

Here's a full rundown of what we know so far:

The Labour government

They've just taken control of the Scunthorpe plant from Chinese owners Jingye, but it's not a full nationalisation of British Steel.

Pushed on the issue on Sunday Morning With Trevor Phillips, the Business Secretary Jonathan Reynolds said that's now the "most likely option". 

On Sunday, he told Sky News that nationalisation "remains an option. And to be frank, as I said to parliament yesterday, it is perhaps at this stage the likely option."

He also added Labour would like to see private investment as the costs of investing in new technology are "very, very significant". 

So it's fair to say, Reynolds doesn't want to see full nationalisation permanently - but he thinks it may be likely. You can read his full comments here.

The Conservatives

Conservative leader Kemi Badenoch spent much of last week insisting that a "commercial solution" should be found for British Steel.

But the party has now shifted to backing nationalisation. 

Andrew Griffith, the shadow business secretary, told Sky News that the government's emergency legislation has resulted in a "botched nationalisation".

He added: "If you look at the powers in the bill, it is the secretary of state who will be ordering furnaces to be stoked with coking coal.

Griffiths said the Conservatives supported the "least worst" option in the Commons on Saturday. 

The Liberal Democrats

Daisy Cooper, the party's deputy leader, has also backed nationalisation, but she's warned that the government must use their powers "judiciously".

In a statement after the legislation gained royal assent on Saturday, she said: "We have to rescue British steel production here at home and support the thousands of jobs that rely on it."

Watch: What is the future of British Steel?

But Cooper added: "The government must show that they will use today's unprecedented legislation judiciously, as part of a serious plan to get our steel industry back on track."

Reform UK

Nigel Farage, the party's leader, has been pushing for the nationalisation of British Steel all week - and Saturday's parliamentary activity hasn't mellowed his position. 

He took this as an opportunity to accuse the Chinese state directly of meddling in UK affairs, saying Jingye's actions were a "big strategic decision" by the Chinese Communist Party.

He declined to give any evidence but he said: "I am 100% certain they bought British Steel to close British Steel."

The SNP

Stephen Flynn has been angered by the government's actions - because of what he perceives to be their inaction over Grangemouth oil refinery in Scotland. 

He said: "Energy security is national security and if a steel plant in England, rightly or wrongly, merits Westminster taking the extraordinary step of recalling Parliament with a view to nationalise it, then why not our key energy asset at Grangemouth?"

Plaid Cymru

In Wales, there is a similar story to the SNP.  The party's messaging is about another steelmaking plant - in Port Talbot. 

Plaid asks: "When 2,800 jobs were being lost in Port Talbot, this UK government chose not to consider nationalisation. 

"Now in Scunthorpe, everything is on the table. Labour must now explain to the people of South Wales why their jobs weren’t worth saving."

The party adds: "Labour has betrayed Welsh industrial communities."

If you're just waking up and aren't quite sure what's been happening in Westminster over the past 48 hours, then don't worry - we've got you covered. 

So, in case you missed, it was announced on Friday that parliament would be recalled from the Easter recess. 

That meant MPs and peers had to return from their constituencies - or holidays, in some cases - to parliament on Saturday morning.

It's the first time parliament has been recalled on a Saturday since 1982, and parliament has only been recalled 34 times since 1948.

So, what was it all for? 

Well, the growing issue of ensuring the UK continues to be able to produce its own steel.

Britain's only remaining blast furnaces are at a British Steel plant in Scunthorpe, owned by a Chinese company called Jingye.

The problem? 

That Jingye recently cancelled orders for supplies of the vital raw materials needed to keep the furnaces running. And without furnaces, politicians including Reform UK's Nigel Farage warned the UK would be left without any steelmaking ability. 

The government held talks all week with British Steel and Jingye, but failed to come to a deal.

Ensuring the UK retains that ability has become all the more important in politicians minds given the recent instability we've seen in recent months, caused in part by US tariffs and the war in Ukraine.

So, what happened in parliament on Saturday? 

Well, the government brought emergency legislation, which would give it the power to direct the British Steel board and workforce. 

Called the Steel Industry (Special Measures) Bill, it's not a full nationalisation of the plant in Scunthorpe. But it is designed to ensure the raw materials needed to keep the furnaces burning don't run out, and that staff continue to get paid.

Watch: The PM met with steelworkers in Scunthorpe

Following debates in the Commons and the Lords, the bill passed in just over six hours and received royal assent from King Charles in the evening, officially making it law at midnight. 

The act gives the business secretary the powers to take control of British Steel (or any other steel asset) "using force if necessary", order materials for steelmaking, instruct that workers be paid, and authorises a jail sentence of up to two years for anyone breaching this law.

It will mean the steel plant in Scunthorpe will continue to operate as the government decides on a long-term strategy for the plant, and steelmaking in the UK more broadly.

Meanwhile, the Easter recess has now resumed, meaning politicians are (largely) able to return to their constituencies/holidays. 

But many questions remain about the future of British steel production and what will happen next at the plant.

 Our deputy political editor Sam Coates gives his analysis

A Conservative shadow minister has insisted it was a "different world" when the decision was made to sell a British Steel site to a Chinese company.

Harriet Baldwin, the shadow business minister, said the deal for Jingye to buy the Scunthorpe site out of insurgency was "welcomed at the time".

This sale took place when Boris Johnson was prime minister.

Asked repeatedly whether this move was a mistake, Baldwin insisted it was a "different world" at the time, and that the decision was welcomed.

She told Sky News: "I know that there was a lot of due diligence done at the time. And it was something that was welcomed by the unions at the time.

"I think we've got to put that in the past, recognise that the world is a different place than it was six years ago."

Baldwin went on to say it is "disappointing" that there was no "real sense of urgency" from the Labour government on the matter.

"It's really no way to run a country."

 A Liberal Democrat MP who was refused entry to Hong Kong to visit her grandson had "no warning she was on a blacklist", she told Sky News.

Wera Hobhouse landed at Hong Kong airport on Thursday after a 13-hour flight - only to be detained by security, questioned, and put on a return flight to the UK.

She had been due to visit her three-month-old grandson and described Chinese authorities' actions as a "cruel and upsetting blow".

Hobhouse told Sky News this was a "very chilling thing".

She said: "I kept it quite well together for three hours, although we were getting more and more tired. But I was co-operative, friendly. 

"I thought I would sort of be asked questions, but in the end, I thought the result would be allowed entry."

Hobhouse said this should be a "wake up call for any parliamentarian".

"Because I had no warning that I was on a blacklist. 

"A few years ago, there were five MPs and two peers who were actually told that they would not be allowed entry. But that is sort of hidden. 

"[This] blacklist exists and nobody knows why. And for what reason then MPs are being denied entry. 

"That is something that we really need to find out the reasons and get to the bottom of it."

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It's the Monday after a dramatic weekend in the House of Commons and Sam and Anne are here to bring you up to speed on the race to keep the furnaces on at the British Steel plant in Scunthorpe.

So what happens now after emergency legislation was passed on Saturday to give the government control of the plant and stop its Chinese owners from shutting it off?

And does the UK have a future as a serious manufacturing country?

Also, a new report from MPs hits back at claims of "two-tier policing" during last summer's riots - calling them "disgraceful". 

An independent review is "under way" into the loan charge scandal, which has left tens of thousands of contractors facing huge bills for tax their employers should have paid.

A report by our political reporter Faye Brown has found that four more people have attempted to take their own life in relation to the scandal.

HMRC has made 17 referrals to the police watchdog (Independent Office for Police Conduct) over the suicide attempts of 14 people, up from the 13 referrals of 10 people previously known about in October 2023.

Asked about this, Treasury minister James Murray acknowledged that the loan charge has "affected a number of people".

He said: "We made commitments in opposition to have an independent review of the loan charge. That independent review is now under way. 

"We went to great lengths to ensure the independence of that review so there wouldn't be interference in it. 

"It would be genuinely independent. And so I need to let that review play out."

He said he expects the report by the end of the summer.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email [email protected] in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK

James Murray, the Treasury minister, was also asked about news a Liberal Democrat MP was refused entry to Hong Kong to visit her grandchild.

Wera Hobhouse landed at Hong Kong airport on Thursday after a 13-hour flight - only to be detained by security, questioned, and put on a return flight to the UK, she told The Sunday Times.

Murray says the government is "very concerned about this".

He added: "Clearly it would not be right to prevent a British MP from entering another country purely on the basis of what they had said. 

"As a parliamentarian, you know what they have said in parliament. 

"And so the first thing we need to do is to find out from the Chinese authorities why she was refused access."

But are UK-China relations good?

Murray says the UK has to be "pragmatic and clear headed" about the situation.

"There are different ways in which we engage with China."

The government has called military planners to help tackle the mounting piles of rubbish in Birmingham as a month-long strike by the city's bin workers continues.

Amid an "ongoing public health risk" posed by the mounds of waste that have been piling up, military planners will be assigned to provide logistical support for a short period.

They will be office-based and soldiers are not being deployed to collect rubbish.

Sky News understands the initiative will only involve three staff from the military.

A government spokesperson said: "The government has already provided a number of staff to support the council with logistics and make sure the response on the ground is swift to address the associated public health risks.

"In light of the ongoing public health risk, a small number of office-based military personnel with operational planning expertise have been made available to Birmingham City Council to further support in this area."

By Faye Brown, political reporter

Four more people have attempted to take their own life in relation to the loan charge scandal, which has left tens of thousands of contractors facing huge bills for tax their employers should have paid, Sky News has learnt.

HMRC has made 17 referrals to the police watchdog (Independent Office for Police Conduct) over the suicide attempts of 14 people, up from the 13 referrals of 10 people previously known about in October 2023.

The figures, revealed in response to a Freedom of Information request by Sky News, come on top of the 10 known suicides of people caught up in the controversial tax crackdown, which has alarmed MPs across the political spectrum.

The loan charge was announced in George Osborne's 2016 budget and made freelancers liable for years of retrospective income and national insurance tax after being paid their salaries in loans.

HMRC has been accused of harassing ordinary people who were victims of mis-selling, as the arrangement was widely promoted by lawyers, accountants and tax professionals in the 2000s and 2010s.

Labour has launched an independent review into the policy but campaigners have branded it a "sham" and "cover-up" as it doesn't look at the principle of the loan charge, only ways to make people settle.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email [email protected] in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK