Steel town hopes for stability with government plan

The government move to nationalise steel plants in South Yorkshire will bring "100% stability", a worker has told the BBC.

Danny Larkin said the announcement that a plan to bring Speciality Steel UK (SSUK) into public ownership had seen a feeling of gloom replaced by an "uplifting mood".

The plants, which support more than 1,300 jobs in Rotherham, Stocksbridge, Brinsworth and Wednesbury, West Midlands, had been mothballed and workers furloughed on reduced wages when the firm ran into trouble in 2025.

Speaking in the House of Commons, Business Secretary Jonathan Reynolds told steelworkers: "I will do all that I can to secure a bright future for you, your communities and your families."

Larkin, a steelworker for 15 years, said: "I think it's a very positive announcement because for the past year, the mood has been abysmal, we haven't known what is happening.

"Being in the government's hands means 100% stability. We will have work coming through and hopefully customers coming back to us."

"This plant is 200 years old so it has that heritage as well, we make speciality steel and it's top notch-grade steel which you will not get anywhere else in the world.

"You can see there's a bit of an uplifting mood which is great," he added.

The government initially took control of SSUK, previously part of Liberty Steel, last year after it was forced to liquidate by the High Court.

Rotherham Council Leader Chris Read said South Yorkshire politicians had "long argued" the steel industry was of national importance.

"Workers in Rotherham and across South Yorkshire have shown remarkable resilience through a prolonged period of uncertainty.

"They deserve a sustainable plan that gives them confidence in the future and protects our industrial heritage," the Labour politician added.

Powers to nationalise the steel industry were passed by Parliament earlier this year.

Labour energy minister at the time, Chris McDonald, said the government was "acting decisively and with a purpose in the national interest".

He rejected criticism from then shadow business secretary Andrew Griffith, who argued "nationalisation is a bad idea" and that the "real issue" for steel was then Energy Secretary Ed Miliband's "addiction to ruinously high energy prices".

British Steel was formally taken into public ownership 24 hours later.

Speaking about the latest nationalisation plans, the Conservative Party said it was "surprised" the government had moved away from a private sector buyer.

Penistone and Stocksbridge MP Marie Tidball said the government had provided £50m to pay the wages and pensions of steelworkers in Stocksbridge and Rotherham.

"This will continue while the government works towards public acquisition. For the 600 workers at Stocksbridge, this means certainty and security," she said.

"They can now be assured of continued jobs, pay, pensions and a government finally prepared to back British steelmaking."

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