DEBATE: Should the government nationalise British Steel in a bid to save it?

Should the government nationalise British Steel in a bid to save it?

Faiza Shaheen, director of the Centre for Labour & Social Studies, says YES.

British Steel is not just emblematic of our great industrial past, but also fundamental to our green future. Why? Because steel and related metals will be needed for new railways, wind turbines, electric cars, and much more.

The problems that the UK’s steel industry faces today are a consequence of neglect and fragmentation due to a botched privatisation, as well as Brexit uncertainty. However, we have the opportunity to fix some of these problems through nationalisation, by marrying steel production to an ambitious and green industrial strategy.

There are those who argue that we cannot compete with China so we should let the industry go. I say no, we need to think strategically and consider the costs to communities and UK taxpayers of losing this industry.

The government is expected to buy £2.5bn worth of steel over the next five years – this is a huge opportunity. We can rejuvenate steel by getting public building contracts to prioritise UK-made steel. Renationalising British Steel is simply the smart thing to do.

Read more: British Steel falls into insolvency as bailout talks fail

Morgan Schondelmeier, head of development, at the Adam Smith Institute, says NO.

As is often the case in the face of the decline of an iconic industry, many people are calling for the government to do something – anything – to save British Steel. But nationalisation is not the answer.

The UK economy is changing. Producing steel domestically is no longer a profitable venture – nor, indeed, an essential one. At the same time, the government’s environmental and trade policies have made it even harder for the steel industry to thrive.

Nationalising British Steel now would not fix that. The government cannot on one hand implement environmental policies that are counterproductive for domestic steel, then on the other use taxpayer money to acquire the failing industry. The costs of running a steel plant should fall on shareholders and customers – not taxpayers – if it wants to survive. Let’s instead focus our money and effort on supporting the workers who face job losses. We can support them in the long term without extending a futile – and expensive – lifeline to an industry on its way out.