The Government is going to play a “big role” in steelmaking in the future, Rachel Reeves pledged during a visit to Scunthorpe.
The Chancellor visited the British Steel facility in Scunthorpe after MPs voted to let ministers take control of the company to prevent Chinese owners Jingye from closing down Britain’s last remaining blast furnaces.
After meeting with the plant’s management team and staff, Ms Reeves said she was “certain” the steelworks would have a bright future.
The Business Department is still looking for a private company to invest in the firm’s future – but Ms Reeves said “nothing is off the table” with regard to nationalisation.
“There is no time limit on that, so we are able now to act as the management team and work with the management team here,” she said.
“Nothing is off the table.
“We did previously try to negotiate with the owner. That was not successful; it would have been throwing good money after bad.
“It was the right thing to do to take control of this company, and nothing now is off the table as we look for a new future, not with the previous owners, but a new future with new investment here in Scunthorpe.
“And of course, Government are going to play a big role in that.”
Ms Reeves said she will be having “conversations with the US administration” next week as the UK looks to secure a trade deal with Washington.
Asked whether the UK is within three weeks of securing a trade deal with the US, the Chancellor told broadcasters: “Those conversations with our US counterparts are ongoing.
“I will be in Washington next week for the International Monetary Fund annual meetings, their spring meetings.
“I will also be having conversations with the US administration whilst I’m there.
“The key thing for the British Government is always acting in the UK’s national interest, and any deal that’s able to be secured will always have front-and-centre British national interest.”
Asked whether any deal could see the 10% US tariff on goods lifted, she said: “We are in active negotiations at the moment with our US counterparts on a whole range of issues concerning the tariffs for steel and aluminium, and the cars which of course are at 25%, as well as the headline tariff rate of 10%.”
She added: “Getting a deal across a whole range of areas… (is) very important for British industry and British jobs, and that is my focus as Chancellor.”
Steelworkers’ union Community said the Chancellor had told staff that the sector was “essential to her vision for economic growth and industrial renewal” during her visit to British Steel’s Scunthorpe plant in North Lincolnshire.
The union’s national secretary for steel, Alun Davies, said that after “years of neglect under the previous Conservative government” the Chancellor had made clear “we have a Government which understands, appreciates and stands with our steel industry”.
He said: “Our members at British Steel were grateful for the opportunity to meet the Chancellor today and expressed their thanks for the Government’s recent actions to secure the future of the Scunthorpe steelworks.
“We know that without the Chancellor’s support, safeguarding the site would not have been possible.
“In her discussions with our reps and officials, the Chancellor reiterated the Government’s support for the workforce at British Steel and the sector more widely, emphasising that steel is essential to her vision for economic growth and industrial renewal across the UK.
“The Chancellor made clear today that we have a Government which understands, appreciates and stands with our steel industry. After years of neglect under the previous Conservative government, that is something we welcome and celebrate.”
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