Councillors back calls for steel nationalisation

Councillors in North Lincolnshire have backed calls for the government to nationalise British Steel if a deal cannot be reached with its Chinese owners Jingye to safeguard thousands of jobs.

British Steel has launched a consultation on the proposed closure of its two blast furnaces at Scunthorpe, putting up to 2,700 jobs at risk.

At a special full council meeting on Tuesday, a joint motion including support for nationalisation, if required, was passed unanimously.

It follows the collapse of talks between Jingye and the government over a support package for the company as it looks to secure a sustainable future by decarbonising.

At the meeting, councillors voted to work together with unions and the government to "ensure a sustainable future for steel-making in Scunthorpe", as well as supporting efforts to "secure additional investment".

Council leader Rob Waltham said: "I think we've felt since the announcement last week a genuine weight on our shoulders as do many thousands of households who live in our area.

"Where we've had market failure is my argument, then nationalisation is sometimes the only option," he said.

Labour opposition group leader Len Foster added: "Steel for me isn't a commodity, it's part of our national strength.

"Any future nationalisation or future stake in the company by the state has to be primarily about the production, and not about profit."

According to the Local Democracy Reporting Service, councillors described the steelworks as the "backbone" of Scunthorpe.

It comes after the Community union said: "If a deal can't be reached with Jingye, then the government must move to nationalise the business."

In the Commons on Thursday, Industry Minister Sarah Jones did not rule out nationalisation as an option, but said the government's "preferred approach, by far, is that British Steel come back to the table with us".

British Steel had been expecting a £1bn injection of government money to keep the business going, the BBC understands.

Zengwei An, the company's chief executive, said the launch of the consultation process was "a necessary decision given the hugely challenging circumstances the business faces", with the imposition of tariffs and higher environmental costs.

The consultation will look at the options of ending operations by early June, in September, or at a later date.

British Steel met with the Community, GMB and Unite trade unions on Tuesday to discuss the status of negotiations with the government.

Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.