What started as a crisis in the steel industry has quickly turned into a full-blown political standoff.
With local elections around the corner and political parties scrambling for influence in key working-class areas, British Steel’s troubles have become much more than just an industrial issue.
Keir Starmer’s latest move—stepping in to rescue British Steel—wasn’t just about economics.
Insiders say it was also about stopping Reform UK from gaining traction in traditional Labour strongholds.
And with Nigel Farage now back in the spotlight, the stakes are even higher.
Labour Takes Urgent Action as Parliament Meets on a Saturday
In a rare and serious step, Parliament was called into session on a Saturday to push through emergency laws aimed at taking control of British Steel.
The government’s business secretary, Jonathan Reynolds, has since ordered Jingye—British Steel’s Chinese owner—to keep the Scunthorpe plant running after talks fell apart.
This move is being seen as a bold attempt by Labour to save jobs and show working-class voters that they’re willing to act decisively.
But the political motivations behind it aren’t being hidden.
Reform UK Piles on the Pressure
It’s no coincidence that this intervention came shortly after Nigel Farage made a highly publicised visit to Scunthorpe.
There, he demanded that the steelworks be fully nationalised—and in typical Farage style, he didn’t hold back on the accusations.
He went as far as claiming that the Chinese Communist Party bought British Steel with the intention of shutting it down.
Pressed for evidence during an interview on Sunday with Laura Kuenssberg, Farage didn’t offer facts—just a strong “intuition.”
“I am 100 per cent certain they bought British Steel to close British Steel,” he said.
Behind the Scenes: Labour’s Strategy
According to insiders, this whole situation is deeply political.
One senior Labour figure revealed that Starmer’s chief strategist, Morgan McSweeney, is laser-focused on the threat posed by Reform.
The belief inside Labour HQ is that, by the time of the next general election, the real battle in many parts of the UK won’t be between Labour and the Conservatives—but Labour and Reform.
“Everything Starmer is doing makes more sense when you realise he’s preparing to face Reform, not the Tories,” said one source.
Local Elections Could Show What’s Coming
With local elections scheduled for May 1, all eyes are on whether Reform will gain more ground.
Many expect them to make a noticeable impact, especially in former Labour strongholds where voters feel let down by the traditional parties.
Still, Farage has challenges of his own. His close relationship with Donald Trump continues to raise eyebrows.
Critics say Trump’s chaotic trade policies and wavering stance on NATO have done more harm than good—and Farage’s alignment with him might not sit well with all UK voters.
Tories Blame Labour’s Green Agenda
Meanwhile, the Conservatives are pointing fingers back at Labour, arguing that Ed Miliband’s Net Zero policies are part of the problem.
In Parliament, shadow business secretary Andrew Griffith argued that strict environmental rules have made it more expensive to produce steel domestically—forcing the UK to import fuel from overseas.
He didn’t hold back, accusing Labour of pursuing an unrealistic green agenda.
“No-one is more responsible for this than the Energy Secretary and the Prime Minister who appointed him,” Griffith said, placing the blame squarely at Miliband and Starmer’s feet.