Hours before leaving Downing Street and taking over as Labour leader, outgoing British Prime Minister Keir Starmer made a decision to nationalise British Steel in a last-ditch bid to cement his legacy before handing over the leadership of the Labour Party and government to Andy Burnham.
According to the Guardian, Thursday 16 July is the last full day for Starmer as leader of the Labour Party before Burnham takes over the leadership tomorrow and succeeds him as prime minister early next week.
British government announces the restoration of British Steel
The British government has effectively announced that British Steel has officially entered the public domain, a day after the Steel Industry Nationalization Act received royal asent, ending the company's ownership by China's Jingye Group, which was already under interim government administration.
"British Steel is part of the national fabric of the United Kingdom, and constitutes an essential pillar of British industrial power," outgoing Starmer said in a statement, stressing that the nationalisation decision "ensures the future of the country's steel industry, protects skilled jobs, and maintains strategic industrial capacity."
He added that his government "will continue to do what is in the national interest, supporting British industry, boosting the economy, and ensuring vital sectors thrive in the long term."
The decision is one of the most prominent government interventions in the industrial sector in recent years, and reflects a growing trend towards protecting strategic industries in light of economic challenges and global competition.
What is British Steel?
British Steel is the last sovereign stronghold of the UK's crude steel industry and one of Europe's oldest industrial enterprises, representing the backbone of iron production from raw materials and fueling the infrastructure, transport and defence sectors, according to economic reports and British think tanks.
The company specializes in the manufacture of long steel and high-quality steel, producing more than 1450 different specifications used in railways, structural structures, the automotive, engineering and military industries, and is based in the Scunthorpe complex in northern England, which houses the country's only major blast furnaces left to produce steel from scratch.
British Steel produces around 3 million tonnes a year, directly employs 2,700 workers, and supports nearly 20,000 indirect jobs in supply chains, according to figures from the UK Department of Economy.
The company went through milestones reflecting the shifts of British policy, as it was founded in 1967 with the first nationalization, then privatized in 1988 under Thatcher, before a series of mergers and overseas sales that ended with the arrival of its ownership to China's Jingye Group in 2020.
Now that the Chinese owner has faltered and threatened to shut down the factory, Keir Starmer's government has returned it to public ownership for the first time in 38 years, to protect Britain's industrial and economic security.
Starmer visits Kyiv
The Guardian newspaper said that while the government was officially announcing the completion of nationalisation procedures, Starmer headed to the Ukrainian capital Kyiv, where he met with Ukrainian President Volodymyr Zelenskyy, in a visit that comes as part of London's affirmation of its "continued support for Ukraine in the face of the war with Russia."
Despite the importance of the decision to nationalise British Steel, Starmer preferred to be out of the country on a diplomatic visit, leaving it to Business Secretary Peter Kyle to visit the company's factory in the northern English city of Scunthorpe.
The Guardian said that in his final days Starmer appeared more decisive than earlier periods of his tenure, as he made a number of decisions that had been on hold for long periods.
These include completing the defence investment plan, offering a formal apology to victims of forced adoption policies, making concessions that helped pass the Hillsborough Bill, as well as granting a parole to Ruth Ellis, the last woman executed in Britain.
These moves do not mean that the prime minister becomes more influential when he announces his departure, but rather give him space to make deferred decisions away from day-to-day political calculations.
Burnham to appoint new Treasury secretary
In parallel with Starmer's departure, speculation is growing about the contours of the next government led by Andy Burnham, who is preparing to take over the leadership of the Labour Party and then the prime minister.
According to British reports, Burnham is heading to appoint current Home Secretary Shabana Mohamud as Treasury Secretary, after Energy Secretary Ed Miliband was considered the frontrunner to take over the economic portfolio.
This potential change is seen as an early indication of the next government's priorities, given economic challenges and growing pressures on Britain's public finances.
Starmer's last political day coincides with the last session of the House of Commons before the summer recess, with the government expected to present more than 20 written statements, including the reorganisation of local administration, improved pay for care workers, the future of secret police investigations, as well as legislative amendments to marriage laws.