Keir Starmer is ‘seriously considering’ nationalising British Steel in the wake of Donald Trump’s tariffs, the Mirror understands.
It comes as the Chinese-owned firm launched a consultation on the closure of two blast furnaces – risking thousands of job losses as well as depriving Britain of its last remaining virgin steelmaking facility.
The Business and Trade department say no option is off the table, but ministers’ preferred option remains the firm continuing as a commercial enterprise with government support.
But it’s understood the tariffs crisis has “focused minds” in the Department for Business and Trade – with the government stepping in to buy the plant and the firm from owners Jingye becoming a more serious option.
Industry minister Sarah Jones hosted a meeting of the Steel Council yesterday, with the CEO of British Steel in attendance.
“We know this is a concerning time for our steel industry in the face of global challenges. That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth and power the modern economy,” she said following the meeting.
“This government will always stand up for UK steelmaking, and where others may talk tough, we are acting, with money ready to go to back up British industry.” Do you think the UK should renationalise British Steel? Vote in our poll HERE to have your say.
The Government’s ‘Plan for Steel’ comes with £3bn of funding – only some of which has been allocated. Industry figures believe as much as £1.75bn could be available to put towards the nationalisation of the firm.
The UK Government is pushing for a deal with the White House in the hope of easing the 10% tariff on US imports of British goods, along with a 25% tariff on cars and separate import taxes for steel and aluminium.
The impact of Mr Trump’s tariffs is likely to be on the agenda for the Liaison Committee’s meeting with the PM this afternoon, where Mr Starmer may also be questioned about the war in Ukraine, conflict in the Middle East, and the US president’s announcement that America will hold direct talks with Iran about its nuclear programme.
In the Oval Office on Monday, Mr Trump indicated he was not open to the idea of pausing tariffs to allow for negotiations with other countries.
Mr Trump also suggested the tariffs could be both a negotiating tool to extract concessions out of other countries, as well as “permanent” levies aimed at raising cash for America’s coffers, amid contrasting views from members of his administration about their purpose.
The UK has not retaliated so far, but has drawn up a 417-page list of possible products which could face tariffs if Sir Keir decides to put import taxes on US goods.
Business Secretary Jonathan Reynolds insisted it was a “total misreading of the situation” to suggest Mr Starmer would appear timid if he decided not to hit back.
He told the BBC’s Newsnight: “Being calm does not mean you’re passive. Being calm is about making sure you’re pursuing your own national interest, in this case, a deeper, fairer trader relationship between ourselves and the US.”
BLUESKY: Follow our Mirror Politics account on Bluesky here. And follow our Mirror Politics team here – Lizzy Buchan, Mikey Smith, Kevin Maguire, Sophie Huskisson, Dave Burke and Ashley Cowburn.
POLITICS WHATSAPP: Be first to get the biggest bombshells and breaking news by joining our Politics WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you want to leave our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
NEWSLETTER: Or sign up here to the Mirror’s Politics newsletter for all the best exclusives and opinions straight to your inbox.
PODCAST: And listen to our exciting new political podcast The Division Bell, hosted by the Mirror and the Express every Thursday.
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Cookie Notice.
