Our town will become Britain’s unemployment CAPITAL if 2k steel jobs are lost – but it will be catastrophic for the UK
FOUR steel furnaces, Bess, Anne, Victoria and Mary, dubbed the “queens of Scunthorpe” once stood proudly over the industrial town – but now they are little more than relics of the past that could be lost forever.
Residents fear the demise of the steel industry could see the Lincolnshire town become Britain’s unemployment capital if the last factory in the country capable of making virgin steel is forced to close.
Scunthorpe is already one of the poorest towns in the country, with its Westcliff precinct ranked in the top 1.05% of deprived neighbourhoods in England, according to the latest Government stats.
Its High Street demonstrates the difficulties the retail industry faces throughout the country, with a number of premises boarded up.
Up to 2,700 jobs remain in jeopardy at British Steel in Scunthorpe – despite the Government taking control after China-based owners Jingye threatened to pull the plug.
The site has been left in limbo since reports in December last year suggested talks regarding necessary investment at Scunthorpe Steelworks were in difficulty.
However, concerns were first raised that Jingye intended to close the plant last September, and were ramped up when the firm ceased purchasing additional raw materials and began selling supplies.
Sir Keir Starmer was said to be considering nationalisation as a last resort – and this month the government brought forward the Steel Industry (Special Measures) Bill to take over powers to direct British Steel.
Only two of the underfunded and crumbling site’s “four queens” blast furnaces are still in operation today – and even these face closure if the raw materials to keep them burning can’t be found imminently.
MPs were ushered back to the Commons last weekend to pass emergency legislation and keep the furnaces burning – but a long-term solution is yet to be reached.
Sir Keir warned the future of the firm “hangs in the balance”.
The new powers granted to the business secretary do not technically constitute nationalisation – as was the case for two decades from 1967 – but that could soon change.
It would mean turning the still privately-owned site into public assets, with taxpayers left footing the bill.
However, if it’s forced to close – which was projected for May – the UK would become reliant on imports for critical infrastructure sites, including rail, construction and defence.
We would be the only G7 nation unable to make its own steel from scratch.
The Jingye talks with Downing Street collapsed last week over a failure to agree on £1billion-worth of subsidies.
The Chinese firm said the plant was losing £700,000 a day and was “no longer financially sustainable”.
‘No town left’
Scunthorpe has an estimated population of 81,286, as per the latest Government figures.
If the steelworks site closes that is the equivalent of three percent of locals losing their jobs.
But it’s more than that, with residents worried there’ll be “no town left”.
Scunthorpe is primarily characterised by its development of iron ore and steel in the area, established in the mid 19th century, and by the 1930s the industry had consolidated.
And the saga over the sustainability of its steelworks has been long-running, with British Steel falling into liquidation in May 2019, before being taken over by Jingye the following year.
Its ownership has been dominated by attempts at cost-cutting amid soaring energy prices, as well as the cost of carbon and labour.
And while residents fear falling through the cracks if the worst should happen, they are also divided over the idea of re-nationalising the factory.
Some argue taxpayers should not have to pick up the bill for an overseas company.
Younger residents are also worried about the prospect of living in the country’s worst unemployment blackspot surrounded by empty shops and boarded up businesses, should the worst happen.
Shirley Bull, 71, said of the prospect of the factory closing: “I think it’s dreadful. It’s going to kill Scunthorpe.
“It has come close to closing a number of times over the years. So I think it should be nationalised.
“It is the only place in the UK where we are producing our own steel. Scunthorpe steel still has a good reputation. It’s famous worldwide.”
Linda Reynolds, 74, said: “This has been coming for years. My husband was made redundant from the work four years ago.
“We all thought it was going to go under then. The trouble with nationalising it is that it has been losing so much money. So why should the national tax payer pick up the bill?”
Ann King said: “The effects of closure will be catastrophic… There will be no town left. It will just kill it.
“There will be nothing left for our grandchildren. My husband worked in the industry but was made redundant in 1982.
“He was lucky he had another trade as a painter and decorator and was able to find another job.”
Fearing a long-term solution isn’t found, Ellie Nixon, 18, said: “I know a lot of people who work there. So it is going to leave a lot of people jobless and be really bad for the town.
“They will be getting in debt through not having a job. It is going to be the downfall of Scunthorpe.”
Nodding in agreement, pal Molly French, 18, added: “I think it is bad because so many people will be left jobless.
“We are the generation who will be affected. They could nationalise it but it would be bad timing with it being owned from China.”
Tony and Sandra Carter, aged 74, and 72, have two sons whose jobs are at risk due to the closure threat.
He said: “It is absolutely disgusting. It would never happen if it was down south.
“I have got two sons working on there and I think it is absolutely appalling.”
Sandra added: “It is like everyone says – they should nationalise it. Plus the fact, there are lot of companies and business going to have to shut down as well.”
Emma Lamont, 49, said – if a solution isn’t found: “So many people will lose their jobs. More shops will shut.
“It will be a sorry situation for everyone.”
Sharon Greening added: “It is not good and it will have a massive impact with hundreds of jobs.
“I know people who work there. In fact, everyone knows someone who knows someone who work there.
“So it will have a massive knock on effect.”
She added that the Government is “cutting it fine” with its timing.
Mick Harvey, who will turn 90 next week, added: “It is terrible – just awful – and it is hard to think what impact it will have on the town.
“We used to have 12,000 people working there. Now it is down to 4,000 and it will be down to 2,000 if nothing is done.”
Fran Horton, 70, has family whose jobs are on the line and believes the local politicians should have been doing more.
He said: “My son is a construction manager on the steel works for local firm VolkerRail and it will effect him and 37 other people.
“But I am worried for my son and the rest of his colleagues.”
Karen Ibbeson, 57, said: “It is bad not just for Scunthorpe but the whole country.
“It never should have been privatised.
“I know people’s who work there. It used to be really well known and highly respected. They are not happy at the way it has gone down.
“The overseas owners have taken our knowledge of the industry and now they have got it and the technology they don’t want to know.”
Emergency bill to save British Steel plant becomes law as King gives approval after MPs pulled back from Easter hols
By Jonathan Rose and Amelia Stout
AN emergency bill to save British Steel’s blast furnaces has become law, with the King giving his approval – after MPs passed the plans last week.
Both the Commons and the Lords broke from Easter recess for a highly unusual Saturday sitting to debate the Steel Industry (Special Measures) Bill.
King Charles has now granted royal assent to the bill, Commons Speaker Sir Lindsay Hoyle has confirmed – meaning it has cleared the Houses of Parliament and become law.
The legislation is aimed at blocking the company’s Chinese owners, Jingye, from closing blast furnaces at its Scunthorpe plant.
The plans will see taxpayer money used to provide materials to the steelworks and open the door to a transfer of ownership.
It will now be debated by the Lords as the Government attempts to get the powers on the statute book in a single day.
Sir Keir Starmer warned the future of the firm “hangs in the balance”.
Ministers hope to secure a private partner to open up co-investment options for a transition.
But urgent temporary action was seen as necessary to keep the plant running until longer-term plans are agreed.
The Commons sitting started at 11am and the House of Lords from midday in the first parliamentary recall on a Saturday since 1982, when MPs returned after the start of the Falklands War.
Jonathan Reynolds told MPs that developments over recent days had made Saturday’s extraordinary sitting of Parliament necessary.
He said Jingye rejected the Government’s offer of support and took steps to end steel production at Scunthorpe.
“Doing nothing is not an option,” the Business Secretary continued.
“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.”
But the Conservatives said the Government should have acted sooner.
Alex Burghart accusing ministers of making “a total pig’s breakfast of this whole arrangement” as they sought “far-reaching powers not seen in legislation really in the past 40 years”.