British Steel nationalised; UK economy grows 0.1% in May
7 reported
The UK government has brought British Steel under public ownership to protect the future of steel production, according to a single-source report. The steelworks, which employs about 2,700 people in Scunthorpe, was taken under operational control by the government in April last year after its Chinese owner JingyeGroup prepared to close its two blast furnaces. Parliament passed legislation on Wednesday allowing the government to bring the steel industry into public ownership if it met a public interest test. Jingye had warned it would seek compensation for nationalisation, after stating in June last year that it planned to recover as much as £711m in debts owed by British Steel. The government said it will appoint an independent valuer to assess whether any compensation is payable, with a compensation scheme expected to be set up through regulations in autumn. Separately, the UK economy grew 0.1% in May, according to the same report.
What’s reported
British Steel has been brought under public ownership by the UK government.
The steelworks employs about 2,700 people in Scunthorpe.
The government took operational control in April last year after JingyeGroup prepared to close its two blast furnaces.
Parliament passed legislation on Wednesday allowing public ownership if a public interest test was met.
Jingye warned it would seek compensation for nationalisation, planning to recover up to £711m in debts.
The government will appoint an independent valuer to assess compensation; regulations expected in autumn.
The UK economy grew 0.1% in May.
Key figures
Keir Starmer (UK prime minister, quoted)
Allan Bell (interim chief executive of British Steel, quoted)
JingyeGroup (Chinese owner of British Steel)
Andy Burnham (incoming prime minister, mentioned)
Varun Chandra (business adviser to Keir Starmer, mentioned)
Mahmood (potential chancellor, mentioned)
Kathleen Brooks (analyst at XTB, quoted)
Jim Reid (Deutsche Bank analyst, mentioned)
Richard Hunter (head of markets at Interactive Investor, quoted)
Mike Ashley (retail billionaire, mentioned)
Uber (company, mentioned)
Delivery Hero (company, mentioned)
Frasers Group (company, mentioned)
Hugo Boss (company, mentioned)
Accent Group (company, mentioned)
Harvey Nichols (company, mentioned)
Ocado (company, mentioned)
TikTok (company, mentioned)
Ofcom (UK regulator, mentioned)
European Court of Justice (mentioned)
Google (company, mentioned)
Sources: The Guardian
