Keir Starmer gets heroes welcome at Scunthorpe steelworks - after dramatic standoff at plant

Keir Starmer was given a heroes welcome at Scunthorpe’s British Steel plant today - after reports of a standoff between workers and executives from its Chinese parent company.

MPs today voted through emergency measures to save Britain’s last working blast furnaces - with the government seizing control of British Steel.

The bill stops short of fully nationalising the firm - but allows the government to step in and ensure the two blast furnaces at the Scunthorpe steelworks do not “go cold”, effectively scuppering them.

Recalling MPs to Parliament on a Saturday for the first time since 1982, Business Secretary Jonathan Reynolds accused British Steel’s Chinese owners Jingye of failing to negotiate in good faith.

And he suggested the firm was effectively trying to extort hundreds of millions of pounds worth of taxpayers money from the government - with no conditions to stop the money being transferred to .

Mr Reynolds told MPs: "We could not, will not and never will stand idly by while heat seeps from the UK's remaining blast furnaces without any planning, any due process or any respect for the consequences.

"And that is why I needed colleagues here today."

is said to have been determined not to stand by and watch Scunthorpe's steelworks go cold.

The Prime Minister frequently mentions a visit he made the Scunthorpe steelworks while in opposition to colleagues, saying the workers at the plant showed him what work really means for communities.

Returning to the plant today, the PM was given a standing ovation at his meeting with some members of the workforce.

One is understood to have said to him: "Thankyou, Prime Minister. We can sleep relieved tonight."

Meanwhile, there was a dramatic standoff at the Scunthorpe plant between workers and Jingye executives.

Staff reportedly stepped in to block bosses from accessing key areas of the plant, fearing they were there to force the closure of the steelworks.

The Times reported Police were called to the site and forced the Chinese delegation “into a hasty retreat.”

said: "Officers were in attendance at British Steel in Scunthorpe at 8.30am this morning following a suspected breach of the peace.

"Upon attending, conducting checks and speaking to individuals in the area, there were no concerns raised and no arrests were made."

Mr Reynolds said had been engaged in negotiations with Jingye since it came to power last July and had offered "substantial" support.

Most recently, the Government had offered to purchase the necessary raw materials for the blast furnaces, the last primary steel-making facilities in the UK, but this had been met with a counter offer from Jingye demanding "an excessive amount" of support.

He continued: "Over the last few days, it became clear that the intention of Jingye was to refuse to purchase sufficient raw material to keep the blast furnaces running, in fact, their intention was to cancel and refuse to pay for existing orders.

"The company would therefore have irrevocably and unilaterally closed down primary steel making at British Steel."

If blast furnaces “go cold” in an unplanned way, would be impossible to restart them - forcing the government to move quickly and recall MPs to the Commons.

Sarah Jones, the Industry minister said: "This problem has now become existential because the company have refused to bring in the raw materials that we need to keep the blast furnaces operating.

"If blast furnaces are closed in an unplanned way, they can never be reopened, the steel just solidifies in those furnaces and nothing can be done.

The bill voted through today gives Mr Reynolds Reynolds the power to take control of British Steel - the Scunthorpe plant itself, and downstream mills operated by the firm.

Mr Reynolds told MPs he believed Jingye’s plan was to scupper Scunthorpe’s steelmaking facilities and supply the mills with imported steel from China.

The 10-page Bill allows the Government to instruct steel companies to keep assets running, and to take over those assets if they fail to comply with those instructions. It also provides for a compensation scheme for costs incurred by a company following the Government's instructions, and criminal sanctions for executives who disregard them.

While it does not take the firm into full public ownership, a change of ownership is inevitable.

Ministers still hope to find a commercial partner to take on the plant and guarantee its future, but nationalisation is still on the table if one can't be found. As well as Mr Reynolds directing staff to keep the blast furnaces operating, the government will pay for the raw materials needed to keep them lit.

Tory shadow ministers said the government should have acted sooner - despite the Conservative government having sold British Steel to Jingye in the first place, and failing to have a deal in place for its future before the election.

Tory leader claimed Labour had "botched" a deal she had negotiated with British Steel while business secretary.

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But under pressure from Mr Reynolds to reveal details of the deal, she admitted no deal had been agreed with Jingye, blaming the snap election for negotiations being curtailed.

Alasdair McDiarmid Assistant General Secretary of Community Union, The Steelworkers Union, said: “Community Union welcomes and wholeheartedly backs the Labour Government’s decisive action to take control of British Steel.

“The government has sought to negotiate constructively and even offered to buy raw materials to stop the blast furnaces closing, but Jingye have shut down every avenue to keep the furnaces running and avoid imminent job losses.

“Moreover, Jingye has not consulted in good faith with the unions, and they now need to get out of the road to give space to all those who want to see British Steel succeed.

“Today’s intervention by the UK Labour Government is a first step towards securing a sustainable future for British Steel and steel communities like Scunthorpe. We will continue to work with the government to deliver this future and build a thriving UK steel industry which supports thousands of good jobs and the economic security of our country.”

Reform UK leader said: "It's just a sticking plaster. Frankly if Jingye, the Chinese owners, are bad faith actors, which I have believed them to be for five years, and today the business secretary said they are not acting in good faith, they should have just done the whole hog today, nationalised it and then tried to find a way of selling it on."