Powers to nationalize the steel industry have been passed by both houses of Parliament.
The House of Commons on Tuesday approved a number of amendments made in the House of Lords to the Steel Industry (Nationalisation) Bill.
The King signed the bill into law on Wednesday, meaning Scunthorpe-based British Steel can now be brought under public ownership.
Energy Minister Chris McDonald told the Commons the government was “acting decisively and with a purpose in the national interest”.
He rejected criticism from Shadow Business Secretary Andrew Griffiths, who argued that “nationalisation is a bad idea” and that the “real issue” for steel is Energy Secretary Ed Miliband’s “addiction to extremely high energy prices”.
Councilor Rob Waltham, leader of North Lincolnshire Council, said it was “hugely important” for Scunthorpe and the surrounding area, but said more still needed to be done to secure its long-term future.
“This is really welcome news as it gives a certain future for steelmaking in Scunthorpe,” he said.
“It is a vital part of our local economy and British Steel is vitally important to our country’s infrastructure.
“You couldn’t build much without steel, you couldn’t do much without steel and, of course, you couldn’t defend yourself without steel.
“Nationalisation is about securing the future of the steel industry as we see it now, but the government will never have enough money to make the investments we need to ensure we have a sustainable steel industry going forward.”
Last year, Parliament passed special powers allowing the government to direct British Steel operations at Scunthorpe.
This prevented its owner, Xinghe, from closing the blast furnace, but the company remained privately owned.
The Chinese company has said it has started the process of seeking compensation for the nationalisation, after previously claiming the business was losing £700,000 a day.
However, the UK government has stated that it may limit or refuse compensation.
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