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UK passes law to bring British Steel under public ownership
The House of Commons approved amendments and the bill received royal assent, following earlier powers that let the government direct Scunthorpe operations and stop Jingye from closing blast furnaces.
BBC Business reports that the UK has passed legislation to nationalize British Steel, clearing the way to move the Scunthorpe-based maker into public ownership. The House of Commons approved amendments to the Steel Industry (Nationalisation) Bill and it then received royal assent, making the measure law.
The energy minister said the government was acting decisively in the national interest, while critics argued nationalisation is a bad approach and pointed instead to high UK energy prices. North Lincolnshire Council leader Rob Waltham said the decision is significant for Scunthorpe and its local economy, and called it welcome news for steel-making there.
The move follows special powers passed by Parliament last year that allowed the government to direct British Steel operations in Scunthorpe, which stopped owner Jingye from closing blast furnaces, though the firm remained privately owned. In May, the government announced British Steel would be nationalized after it failed to reach a deal with the Chinese company.
Jingye previously claimed the business was losing 700,000 pounds a day and has said it has begun seeking compensation for nationalisation. The UK government has said it could limit or refuse compensation.