UNIONS urged ministers to address Britain’s high energy costs and ensure domestic steel is used on public infrastructure projects after British Steel was nationalised yesterday.

PM Sir Keir Starmer announced the steelworks, which employs about 2,700 people in Scunthorpe, was brought under public ownership to “protect the future of steel production in the UK.”

It was taken under operational control by the government in April last year after it emerged that its Chinese owner Jingye Group was preparing close its two blast furnaces.

TUC general secretary Paul Nowak said: “This is a vital step forward for our steel industry — and one that will save thousands of jobs, protect the sector as a whole and ensure Britain retains the capability to produce steel at home. 

“Steel is a foundation industry — it’s vital to our economy and our security as a country. Nationalising British Steel is the right thing to do and it’s in the national interest. 

“But more work needs to be done to ensure the long-term future of the sector, including bringing down industrial energy costs. 

“The government should use all levers at its disposal to make sure UK steel is used on public infrastructure projects. That’s how you put steel on a firm footing for the future.”

Unite general secretary Sharon Graham said: “This act must now be the first step in a journey to transform our steel industry. 

“We need serious investment on the ground across the industry to create jobs and make Britain a leading producer of green steel.

“This also means addressing uncompetitive high energy costs and ensuring that UK steel is used on all UK infrastructure projects.”

GMB national secretary Charlotte Brumpton-Childs said: “It’s no exaggeration to say ministers have saved the UK steel industry.

“But the hard work to keep it alive starts here; beginning with a commitment to public infrastructure projects to buy British.

“GMB also demands a worker voice in the new nationalised company, so those who rely on the business will be in the boardroom and it will never be solely at the whim of foreign enterprise.”

Community assistant general secretary Alasdair McDiarmid said: “The Labour government has shown continued support for the steel sector and we look forward to seeing the UK Steel Strategy implemented in full.”