UK politics: ‘All options on table’ for Scunthorpe steelworks, says Starmer, amid calls for nationalisation – as it happened
Starmer says ‘all options on table’ for Scunthorpe steelworks, as report claims nationalisation being seriously considered
Keir Starmer has said all options should remain on the table for the future of British Steel’s Scunthorpe plant – amid reports that the government is “seriously considering” nationalising the plant.
As PA Media reports, British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant and the government has been talking to the company’s Chinese owner Jingye. There have been calls for temporary nationalisation amid fears of thousands of job losses.
Asked about the Scunthorpe steelworks during his evidence to the liaison committee, Starmer said:
We will keep talking. We have made an offer, but all options are on the table in relation to Scunthorpe. I think it’s really important and we’re in the middle of those discussions.
Asked what he meant by “all options”, Starmer replied:
I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment.
I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.
But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.
According to a Bloomberg story by Ailbhe Rea and Alex Wickham, ministers are seriously considering nationalising the steelworks. They report:
Trade unions have warned that Jingye has canceled orders for iron ore, coking coal and other raw materials needed to make steel, raising concerns the Scunthorpe plant could effectively close within days without the fuel to run it. If the raw materials aren’t ordered this week, the blast furnaces risk being permanently shuttered, according to one person working in the industry.
Ministers are now examining putting in the order for the raw materials themselves to buy Scunthorpe time, the people [familiar with the matter] said, adding that the order could be made as soon as Wednesday. Nationalization looks like the only viable option if Britain wants to prevent itself from becoming the only G7 economy without a virgin steel industry, the industry figure said.
The Bloomberg report stresses that the nationalisation plans “haven’t been finalised and may not materialise”.
Reform UK has called for British Steel to be nationalised if necessary, and in the Commons yesterday at least one Conservative MP also backed this idea.
But Kemi Badenoch said today nationalisation “has got to be a last resort”.
Responding to the Bloomberg report, Plaid Cymru said it would be a “betrayal” of Wales for the government to nationalise the Scunthorpe steelworks when it did not do the same for Port Talbot. Plaid’s trade spokesperson Llinos Medi MP said:
When Plaid Cymru called for the nationalisation of Port Talbot to safeguard Welsh steel, Labour dismissed it without hesitation.
Now, as the UK Government considers nationalising British Steel in Scunthorpe, Labour’s quiet acceptance of a Tory plan that cost 2,500 jobs in Port Talbot is nothing short of a betrayal.
Key events
Early evening summary
Starmer admits digital services tax and Online Safety Act raised in trade talks with US
Why Starmer’s criticism of OBR was unfair
FTSE 100 closes 2.71% up as global markets recover ground from Trump tariffs shock
Report stage debate on assisted dying bill postponed for 3 weeks so MPs get more time to consider changes
New child protection authority being set up, safeguarding minister Jess Phillips tells MPs
Starmer says ‘all options on table’ for Scunthorpe steelworks, as report claims nationalisation being seriously considered
Starmer says state-based threats to people in UK are ‘growing’, and threat is underestimated
Starmer declines to comment on Chinese nationals caught fighting in Ukraine, saying he needs proper briefing first
Starmer says there should be an inquiry into killing of 15 humanitarian workers in Gaza
Starmer says Louise Casey review should lead to social changes in 2026, before final report gets published
Starmer criticises OBR for not taking account of positive impact welfare reforms might have on employment
Starmer says regulation has gone too far and ‘large chunk of growth’ can be achieved by cutting it back
Starmer say he wants EV crossover point, where they become as cheap as petrol cars, to be reached sooner
Starmer says his ‘instinct’ is ‘not to jump in with both feet to retaliate’ against US over tariffs
Starmer faces questions from Commons liaison committee
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Reeves rejects Lib Dem call for government to launch ‘Buy British’ campaign
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Early evening summary
Keir Starmer has said all options should remain on the table for the future of British Steel’s Scunthorpe plant – amid reports that the government is “seriously considering” nationalising the plant. (See 3.34pm.)
Starmer admits digital services tax and Online Safety Act raised in trade talks with US
As Hugo Gye reports for the i, during his evidence to the liaison committee Keir Starmer admitted that the digital services tax and the Online Safety Act were being discussed with the US as part of the trade deal talks.
Starmer told the committee:
In relation to trade talks, obviously there are questions about the appropriate way to tax digital services, etc. There are questions about how technology impacts free speech.
I’ve been very clear in my view that we need to have arrangements for a digital tax of some sort, and equally we need to be pioneers of free speech which we have been for very many years in this country.
But at the same time, we rightly protect under the Online Safety Act – further provisions of which are coming into force pretty quickly – and when it comes to paedophiles and protecting children, I take a pretty strong line that we take the necessary measures in order to do so.
Ministers have played down the likelihood of concessions in these areas, saying the US tech companies will always have to pay a fair rate of tax and that basic protections under the Online Safety Act will not be removed. But they have not ruled any changes or reviews of these policies.
Calum Miller, the Lib Dem foreign affairs spokesperson, said:
Keir Starmer must commit to giving parliament a say over any future Trump trade deal, including any concessions over online safety and the tech tax.
It would be immoral for Trump’s tech bro backers to be given tax breaks while children’s safety online is thrown under the bus.
Why Starmer’s criticism of OBR was unfair
Keir Starmer may have confused the DWP’s assessment of the government’s welfare reforms with the OBR’s when he gave evidence to the Commons liaison committee.
In response to a question from Labour’s Debbie Abrahams, Starmer criticised the OBR for not taking into account the positive affects the reforms would have on more people being encouraged back to work when it published its report. (See 3.04pm.)
But he was responding to a question an assessment saying that the changes would push 250,000 people into poverty. That came from the DWP, and it did not take account of the likelihood that some of the people losing benefits will return to work – which might keep them out of poverty.
This was a point made repeatedly by Treasury ministers on the day of the spring statement, and the morning after.
Asked to comment on what Starmer said to the committee, the OBR said it had nothing to add beyond what it said in its own report.
In the report, the OBR admits that it has not estimated the impact of the welfare reforms on employment. But it says that’s not because it did not want to; it is because the government did not suppy the information needed for that assessment to be possible.
It said:
While our fiscal forecast takes account of the direct fiscal costs of some of the welfare policies in the government’s Pathways to Work green paper and their indirect effects on aggregate demand, we have not incorporated most of their supply-side impacts on the labour market. This was due to insufficient information from the government on the policies announced and analysis of their likely economic effects. We will incorporate our estimate of these impacts in our next forecast.
Starmer’s comment may have been influenced by the fact that he is frustrated with the OBR for another reason. It has been reported that Starmer thinks it is barmy that the government has to revise its spending plans every six months in response to a new forecast from the OBR. Updating the OBR forecasts once a year would make a lot more sense, he reportedly thinks.
Some of the earlier posts covering Keir Starmer’s evidence to the Commons liaison committee have now been beefed up with more direct quotes. But you may need to refresh the page to get them to show up.
FTSE 100 closes 2.71% up as global markets recover ground from Trump tariffs shock
London’s FTSE 100 index climbed firmly higher as global markets recovered ground on hopes for potential trade deals between the US and other countries, PA Media reports. PA says:
The index was up 2.71%, or 208.45 points, to 7,910.53 at the close of trading.
In the US, the Dow Jones index was up 2.45%, while the S&P 500 finished 2.36% higher.
Report stage debate on assisted dying bill postponed for 3 weeks so MPs get more time to consider changes
The next debate on the assisted dying bill in the Commons chamber has been delayed by three weeks, it emerged today.
The bill has finished in committee and, as the first private member’s bill debated this session, it had been expected back in the Commons for its report stage on Friday 25 April – the first available slot.
But Kim Leadbeater, the Labour MP sponsoring the bill, has written to MPs saying the report stage debate will not take place until Friday 16 May.
In a letter to MPs, she says:
I greatly appreciate the effort colleagues have made to keep the previously announced date free in their diaries, but I have listened carefully to members on all sides of the issue who have told me that they would welcome more time to consider the amendments to the bill in committee, to see the new version of the bill as a result of these important changes, and other related matters …
I have always said it is more important to do this work properly than to do it quickly, which is why I ensured the committee had plenty of time to do its work and why I think it is now sensible to allow all MPs a few more weeks for their own consideration.
Only a small number of MPs vote on a debate when it is in committee. The report stage debate will be the first chance for all MPs to vote again on the bill since its second reading in November.
On that occasion the bill passed by 330 votes to 275 – a majority of 55. But there have been changes to the text of the bill, including the removal of a provision for assisted dying applications to need the approval of a judge, and it is not clear whether the amended bill will attract as much support as the original second reading version.
New child protection authority being set up, safeguarding minister Jess Phillips tells MPs
A new child protection authority will be created to address one of the central recommendations of a major inquiry into child sexual abuse, PA Media reports. PA says:
The Independent Inquiry into Child Sexual Abuse (IICSA) led by Professor Alexis Jay found institutional failings and tens of thousands of victims across England and Wales.
The seven-year probe made 20 recommendations in the final report published in 2022, as it described child sexual abuse as an “epidemic” across the two nations.
The wait for the recommendations to be implemented hit the headlines in January after billionaire X owner Elon Musk criticised the prime minister and Home Office minister Jess Phillips over the UK’s handling of child grooming scandals.
Today Phillips told MPs the publication of the report should have been a “landmark moment”, but victims and survivors were “failed again” when recommendations were not properly taken forward under the previous government.
She told the Commons: “I can announce to the house that to prioritise the protection of children and to improve national oversight and consistency of child protection practice, this government will establish a new child protection authority.
“Building on the national child safeguarding review panel, the child protection authority will address one of IICSA’s central recommendations for providing national leadership and learning on child protection and safeguarding.
“Work to expand the role of the panel will begin immediately, and we will consult on developing the new authority this year.”
But the safeguarding minister was also faced with backlash in the Commons for not providing an update on five local inquiries into child rape gangs previously announced by the government.
Responding to Phillips’ statement, Conservative frontbencher Katie Lam told the Commons: “In January, the home secretary said the government would conduct five local inquiries into the rape gangs which have terrorised so many innocent children.
“Over three months since the government announced these local inquiries, Tom Crowther KC, a barrister invited by the Home Office to help establish them, knows almost nothing about their progress, and neither do we.”
Starmer says ‘all options on table’ for Scunthorpe steelworks, as report claims nationalisation being seriously considered
Keir Starmer has said all options should remain on the table for the future of British Steel’s Scunthorpe plant – amid reports that the government is “seriously considering” nationalising the plant.
As PA Media reports, British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant and the government has been talking to the company’s Chinese owner Jingye. There have been calls for temporary nationalisation amid fears of thousands of job losses.
Asked about the Scunthorpe steelworks during his evidence to the liaison committee, Starmer said:
We will keep talking. We have made an offer, but all options are on the table in relation to Scunthorpe. I think it’s really important and we’re in the middle of those discussions.
Asked what he meant by “all options”, Starmer replied:
I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment.
I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.
But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.
According to a Bloomberg story by Ailbhe Rea and Alex Wickham, ministers are seriously considering nationalising the steelworks. They report:
Trade unions have warned that Jingye has canceled orders for iron ore, coking coal and other raw materials needed to make steel, raising concerns the Scunthorpe plant could effectively close within days without the fuel to run it. If the raw materials aren’t ordered this week, the blast furnaces risk being permanently shuttered, according to one person working in the industry.
Ministers are now examining putting in the order for the raw materials themselves to buy Scunthorpe time, the people [familiar with the matter] said, adding that the order could be made as soon as Wednesday. Nationalization looks like the only viable option if Britain wants to prevent itself from becoming the only G7 economy without a virgin steel industry, the industry figure said.
The Bloomberg report stresses that the nationalisation plans “haven’t been finalised and may not materialise”.
Reform UK has called for British Steel to be nationalised if necessary, and in the Commons yesterday at least one Conservative MP also backed this idea.
But Kemi Badenoch said today nationalisation “has got to be a last resort”.
Responding to the Bloomberg report, Plaid Cymru said it would be a “betrayal” of Wales for the government to nationalise the Scunthorpe steelworks when it did not do the same for Port Talbot. Plaid’s trade spokesperson Llinos Medi MP said:
When Plaid Cymru called for the nationalisation of Port Talbot to safeguard Welsh steel, Labour dismissed it without hesitation.
Now, as the UK Government considers nationalising British Steel in Scunthorpe, Labour’s quiet acceptance of a Tory plan that cost 2,500 jobs in Port Talbot is nothing short of a betrayal.
Hillier ends with questions that came out of the Youth Parliament meeting.
Q: When will the government legislate to lower the voting age to 16?
Starmer says it’s a manifesto commitment, and the government will definitely implement it.
It has been brought in in Scotland and Wales, and the sky “didn’t fall in”.
Q: And do you favour more citizenship education?
Starmer says he is pleased it is in the curriculum. And the curriculum is being reviewed.
And that’s the end of the hearing.
Starmer says state-based threats to people in UK are ‘growing’, and threat is underestimated
Meg Hillier asks about foreign states, like China, Russia and Iran, taking action against people in the UK.
Starmer says this is an important issue. State-based threats in the UK are ‘“growing”, he says. It is an important strand of defence and security work.
And it being constantly raised in international talks.
I think we generally underestimate that threat, and it’s very important we’re alive to it.
UPDATE: Starmer said:
You highlight a really important issue, which is state action in this country, which is growing, and state-based threats. And we need to be aware that this is growing and I can assure the committee it is an important strand of the work that we are doing on defence and security all of the time now.
It is constantly raised in international discussions that we have for very obvious reasons, but it is a serious threat.
I think we generally underestimate that threat and it’s very important that we’re alive to it.
Toni Antoniazzi (Lab) asks Starmer if he backs calls for an inquiry into the killing of Sean Brown in Northern Ireland in 1997. State agents have been linked to the murder.
Starmer says the government will consider the court of appeal judgment on this, which said the refusal to hold an inquiry was unlawful. But he says in the first instance there should be a criminal investigation.
Chi Onwurah (Lab) goes next.
Q: Peter Kyle says big tech companies are as powerful as nation states. How will you treat them?
Starmer says these are powerful companies. But the government does tax them, and they are subject to the Online Safety Act.
Q: The riots last summer were amplified by misinformaton on social meda. The Online Safety Act does not cover this. Will you take action?
Starmer says where online information incited violence, it was unlawful. Some people thought online was a law-free zone. It was important to establish that it was not.
He says gauging what is misinformation or not is hard to policy.
Q: China spends between £8bn and £10bn a year on information operations, and Russia about half that. What does the UK spent?
Starmer says the government does take action against misinformation by state actors.
Q: Can we defend ourselves without a sovereign AI capability?
Yes, we can, Starmer says. But he says the country should always be ambitious.
Q: Do you agree that a dispute about fish should not hold up the UK and the EU agreeing a security pact?
Starmer says Boris Johnson agreed the fishing deal with the EU. It has to be reviewed periodically, he says. But he says it is best if this is not done in public.
Starmer declines to comment on Chinese nationals caught fighting in Ukraine, saying he needs proper briefing first
Tan Dhesi (Lab) goes next.
Q: What is your response to the news that two Chinese soldiers have been caught fighting for Russia in Ukraine?
Starmer says he has only just heard this news. He says he would like to get a proper briefing on what happened before he comments. He says he would like to speak to President Zelenskyy against this.
Starmer says there should be an inquiry into killing of 15 humanitarian workers in Gaza
Sarah Champion (Lab) is asking the questions.
Q: Israel seems to be ignoring international law. How will the UK comply with the international court of justice ruling on Israel breaking international law?
Starmer says he was an international lawyer. He jokes that marks him down, not up. But of course he believes in international law, he says.
He says the government thinks the occupation of Palestine is unlawful.
Q: Many people feel Israel is not being held to account. Will we push for an inquiry into the recent killing of 15 humanitarian workers in Gaza?
Starmer says there has to be an inquiry into that.
And he says aid needs to be getting into Gaza.
And the UK should put its “foot in the door” to push for a two-state solution.
Starmer says he does not want to cut the aid budget.
But he does not accept the government can do nothing until the aid budget goes up again. He goes on:
That’s why I’ve had active discussions with the World Bank, other institutions, other countries and the private sector about how we could leverage aid financing in a different way, using the private sector, how we can better co ordinate and cooperate with other countries.
Meg Hillier asked Starmer about Darren Jones, the chief secretary to the Treasury, using a pocket money comparison when referring to disability benefits being cut.
Starmer replied:
Of course language matters, I think every member of Cabinet knows that. Occasionally people don’t get it quite right. They usually apologise and are quite right to.”
The two values that have driven me in everything I’ve done as a lawyer and as a politician are dignity and respect. Dignity is probably the most important word in my dictionary.