MP's pledge for Rotherham steel production as Government announces major plan
A NEW plan which could see the nationalisation of British Steel will not directly impact on production in Rotherham – though the town’s MP is looking to secure its future.
The Government announced a plan on Monday (May 11) to potentially renationalise British Steel – which was sold off in 1988 – utilising powers to be announced in the Kings Speech on Wednesday.
The new powers would be subject to public interest tests.
The Prime Minister announced the new legislation in a speech on Monday in which he set out his plan to boost the UK’s sovereign capabilities, protect British industry, and prioritise British jobs and industrial communities.
Since the Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of blast furnaces, it has been in discussions with British Steel’s owner to find a solution for the business on acceptable terms.
It has not been possible to agree a commercial sale with the current owner, and government does not believe an agreement could be reached which would deliver acceptable value for money for taxpayers.
The Government believes introducing legislation to provide a route to public ownership is the appropriate next step, while recognising that any decision to use the powers in the Bill would be subject to the Bill’s public interest test being met which consider factors such as national security, maintaining critical national infrastructure and supporting the economy.
The announcement follows the launch of the Government’s Steel Strategy in March which outlined its long‑term plan to revitalise the UK steel sector and bolster economic resilience by meeting up to 50 per cent of UK steel demand domestically.
Prime Minister Keir Starmer said: “Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.
“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.”
Business secretary Peter Kyle said: “Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.
“Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation.”
Rotherham MP Sarah Champion vowed to try and offer protection for the Liberty Steel plants at Aldwarke and Brinsworth even though it would not be part of the Government’s proposed scheme.
She told the Advertiser: “The Government is right to recognise the strategic importance of steel production, and to be prepared to act to safeguard its future.
“While today’s announcement does not impact directly on Speciality Steels in Rotherham, it does send a strong message that Labour will do whatever it takes to defend our vital sovereign capability.
“I will continue to do all that I can to protect steel jobs in Rotherham and to ensure that the right ownership model for Speciality Steels is secured as soon as possible.”