The Guardian view on taking back control of steel: back in state hands, but far from sorted
In 1976, night-shift steelworkers at Templeborough – then the world's largest electric arc plant – broke a production record. A letter from Prime Minister Jim Callaghan awaited them, hailing the shift a triumph for the state-owned plant and for Britain. It might be back to the future after Sir Keir Starmer greeted Scunthorpe workers this weekend, to mark his government taking control of British Steel from its Chinese owners.
The UK has stumbled – or rather been dragged – back into industrial policy. After decades of laissez‑faire hand-wringing, the looming closure of Britain's last blast furnaces forced the business secretary's hand. Nationalisation, a word redolent of postwar statecraft, is back on the table. And rightly so.
Britain's policymakers are waking up to the fact that strategic sovereignty isn't a quaint 1945 idea – it's the key to energy transition, secure supply chains and a functioning economy. Steel is also about political memory, local identity and who gets a future. That question has long been answered unevenly – and steel regions are where the consequences land hardest. Chris McDonald, Labour MP for Stockton North and former chief executive of the UK's steel innovation centre, told MPs global steel isn't a free market – it's shaped by state power. France backs its industry with procurement. Germany subsidises energy. China hands out cash. The US blocks foreign rivals. The UK's mistake has been to outsource industrial policy to the market.
Globally the steel industry accounts for around 8% of global greenhouse gas emissions. To reduce that requires moving to electric steel mills that produce about 80% less carbon compared to a blast furnace. But this greener form of steel production relies on two key inputs: recycled scrap for most applications and DRI (direct reduced iron) – iron with minimal impurities – for aerospace or medical uses. Pharmaceutically pure steel may sound niche – until you're replacing a knee. Surgical implants demand extreme purity, zero toxicity and total corrosion resistance.
If the UK wants low-carbon steel, it needs a plan for virgin iron. But that means building DRI plants, greener supply chains and long-term access to high‑purity iron ore – none of which Britain currently produces. It's a rude awakening for a country that bet on the market to deliver. The Swedes, as it happens, did not make that bet. They built a ecosystem of state-owned mining, steel and green energy firms, and delivered fossil-free steel to Volvo in 2021 – with subsidies, strategy and shared purpose. Germany and Austria are following suit. Meanwhile, the UK parliament has only just decided it's OK to intervene.
The Scunthorpe takeover concedes what should have been obvious: steel is a national asset, not just another market failure. But the roadmap is missing. Green-powered DRI plants are the likely next step, feeding electric arc furnaces. But these slash steel employment by 80%. The real challenge? Shifting workers fast enough to green jobs before the old ones vanish. The government's forthcoming steel strategy must do more than tinker. It must forge the future. Less than 10% of global iron ore reserves are currently suitable for DRI. Analysts suggest there needs to be a tenfold rise in DR-grade supply to meet a 2050 net zero target. Better to get ahead now than play catch-up later. Britain must resist the allure of short-term fixes and think like a country that still makes things – and wants to keep doing so.
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Glasgow Times
38 minutes ago
- Glasgow Times
British state ‘overbearing' ministers say as they lay out industrial overhaul
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Daily Mail
an hour ago
- Daily Mail
David Lammy ducks over whether UK supports US bombing of Iran... as he claims the government was NOT given legal advice on joining action
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Mr Lammy said the situation 'represents serious risk to British assets in the region', telling Tehran: 'We are prepared to defend our personnel.' He argued that military action could not be a permanent solution because Iran had the expertise to enrich uranium. 'That knowledge is not lost… it is the stepping stone to a nuclear weapon,' he said. Earlier, No10 denied Keir Starmer has been made to look a 'chump' by Mr Trump over the Iran crisis. The PM and president spoke last night after the US strikes on Tehran's nuclear sites. But Downing Street 's readout notably did not include any reference to the 'de-escalation' Sir Keir has been urging in other statements. Instead the leaders apparently agreed Iran must not be allowed to develop a nuclear weapon and should return to negotiations. Soon after the call Mr Trump took to social media suggesting regime change - swiping that it could be time to 'Make Iran Great Again'. 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He said: 'It's not politically correct to use the term, ''Regime Change,'' but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change??? MIGA!!!' Asked about Mr Trump's posts, Mr Lammy said: 'There will be further tweets on many issues over the next three-and-a-half years of Donald Trump's leadership that you will be discussing… the rhetoric is strong but actually I can tell you, having spoken to the Secretary of State, having sat in the White House, that this is targeted action to deal with Iran's nuclear capability.' He added: 'I'm very conscious that when I met colleagues in the White House on Thursday that they were considering all of the options… we knew that, you knew that as journalists. And Donald Trump made a decision to act to degrade that capability. It may well have set back Iran by several years. That was a decision that he took.' 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In contrast, shadow defence secretary James Cartlidge said he backed the US action. 'We support what's happened, and obviously now need to see what happens next. There is a big question about the Prime Minister's position. It's just not clear what he actually thinks of the attacks,' he said. 'If you look at the language he's talking about recognising the action has happened, that he's spoken to the president, [but] does he actually support the actual military action? 'Because, let's be clear, lots of people say, lots of politicians in this country, lots of our allies, quite rightly, and it's important that they do. 'They recognise that Iran can't be allowed to have a nuclear, a military nuclear program, but at the same time, it's not clear what the action is that they would take to deal with that.'
Western Telegraph
an hour ago
- Western Telegraph
Welfare reforms will lead to ‘appalling poverty'
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The Universal Credit and Personal Independence Payment Bill will be debated on July 1, when it receives its second reading in the Commons. Speaking on Monday, Mr Burgon, Leeds East MP, said: 'Isn't the simple and sad truth that any MP who votes for this upcoming welfare Bill is voting to take Pip from disabled people who need assistance to cut up their food, wash themselves and go to the toilet?' Sir Stephen replied: 'No. What people will be voting for is reforms to open up opportunities for people who have been denied opportunities for far, far too long. We're putting that right.' Mr McDonald, MP for Middlesbrough and Thornaby East, said: 'Ministers have highlighted the scale of Pip recipients expected to lose payments make up one in 10 of the total Pip caseload, suggesting the impact of the cuts will be limited, but that's still 370,000 current recipients expected to lose on average, £4,500. 'But these numbers rest on a set of assumptions that the OBR has described as highly uncertain. DWP data shows there are 1.3 million people currently receiving Pip daily living payments who would not meet the new criteria. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million (Philip Toscano/PA) 'So before MPs are asked to vote on imposing such appalling poverty, will the DWP or the OBR provide further evidence underpinning these claims?' Sir Stephen replied: 'Well, the OBR has published its assessment. (Mr McDonald) is absolutely right, their assessment is that one in 10 of those who are receiving Pip in November next year will have lost it by 2029/30.' 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Shadow work and pensions secretary Helen Whately said the reforms will get 'a grand total of zero people into work, according to their own impact assessments'. Elsewhere in work and pensions questions, Ms Kendall said the child poverty task force will look at 'all the levers that we need' to tackle the issue, when pressed on the Government's plans for the two-child benefit cap. What people will be voting for is reforms to open up opportunities for people who have been denied opportunities for far, far too long. We're putting that right Work and pensions minister Sir Stephen Timms Tracy Gilbert, Labour MP for Edinburgh North and Leith, said: 'I absolutely agree… with a number of charities that removing the cap alone is not a silver bullet to tackle child poverty, but it will make a difference. 'Can (Ms Kendall) confirm if the tackling child poverty task force is considering the removal of a two-child cap?' Ms Kendall replied: 'I can absolutely confirm that the child poverty strategy will be looking at all the levers that we need to tackle this really important issue, including in terms of social security. 'She is impatient for change for her constituents, as am I. We have already put in place a fair repayment rate for universal credit, we are increasing the standard allowance for the first time in universal credit, for the first time in its history, and rolling out free school meals. 'But I will, of course, take her representations forward and make sure they're heard by the task force.'
