Keep the fire burning

Good Sunday afternoon, Crunchers. This is Mason Boycott-Owen, here with all of your weekend political news following the dramatic recall of parliament to save the British steel industry. Let’s catch you up on all the action.

THINGS TO KNOW

KEEP THE FIRE BURNING: On Saturday, parliament was recalled from its Easter recess to debate emergency legislation to keep the Scunthorpe British Steel site running as talks with Jingye — the company’s Chinese owner — broke down.

The problem: The facility in Lincolnshire is the only place in the United Kingdom currently capable of making virgin steel. If it runs out of raw materials and the blast furnace fires used for smelting steel go out then restarting them will be expensive and complicated.

The vote: MPs and Lords from across the political divide voted to pass the new law, which gives Jonathan Reynolds, the business secretary, powers to keep the plant running in a step just short of full nationalization — something Reynolds yesterday admitted would be the likely next step as the government now scrambles to find a partner in the private sector.

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PM’s words: Prime Minister Keir Starmer last night said that the move shows that “this is a government of industry” and steel made in the United Kingdom will be the “backbone” of his administration’s attempts to “get Britain moving once more.” Saturday’s Times reports that the PM delayed his holiday by 24 hours until today to get the plans over the line.

Raw deal: The incident has set ablaze British-Chinese relations. The U.K. government has said that Jingye had been selling off coke and iron ore, needed to keep the furnaces going, without ordering replacements in the run-up to Saturday’s intervention. Reynolds was unable to confirm to the BBC’s Laura Kuenssberg whether the government will even be able to get the raw materials together needed to keep the furnaces running.

Get the boats in: The Sunday Times reports that ministers are considering sending the Royal Navy to escort fuel shipments to the blast furnaces to ensure that it reached Britain without being intercepted or redirected.

Inside negotiations: Pushed by Sky’s Trevor Phillips on what changed late last week to recall parliament when it was somewhat obvious to many that the furnaces were set to run out of fuel, Reynolds said that it became clear that Jingye “wouldn’t accept any financial offer” on Thursday.

What’s the bunse? Reynolds said that the government’s offer was around half a billion pounds, — similar to that paid by the government to Tata Steel in Wales — but Jingye asked for “more than double that” with “nothing to prevent” that money or assets leaving the country.” He added that he thinks that “they may have come back and asked for additional resources,” even if the government had accepted these terms which “no government would have accepted.”

Electric future: He told Phillips that the plans to modernize the plant, such as by installing of electric arc furnaces, are very expensive. Despite the government having a steel fund, he added: “To meet that ourselves, that would be very, very significant. So I want those private sector partners.”

Tories bash: Andrew Griffiths, the shadow business secretary, was also on the morning round to bash the plans, as is his job, calling the powers a “botched nationalization,” which his party voted through yesterday because it was the “least worst” option.

China angle: Reynolds tried to walk a delicate line with Phillips on Chinese state involvement. Though he admitted that there are “always direct links to the Chinese Communist Party” for any company in China he rowed back by adding: “I’m not accusing the Chinese state of being directly behind this. I’m not alleging some sort of foreign influence.”

Captain of hindsight: He added that he wouldn’t allow a Chinese company to be brought into the steel sector in Britain as it is a “sensitive area” but wouldn’t comment on whether other sectors, such as nuclear, would be subject to this lack of trust in companies linked to Beijing.

Mystic Farage: Reform UK leader Nigel Farage told Kuenssberg that the move was orchestrated by the Chinese Communist Party, and is “100% sure” that they bought the company to shut it down. Asked, quite reasonably, what his evidence is for this, Farage said it was his “intuition.”

Balancing act: The actions of the Chinese company have thrust Britain’s relationship with the global power back into the spotlight. The government has yet to put China on the “enhanced tier” of states that present a risk to the U.K. alongside Russia and Iran, at the same time as calling out “Chinese state sponsored” cyber attacks earlier this month.

Reminder: China owns hundreds of billions of pounds worth of key infrastructure assets throughout the U.K.

MP blocked: The Sunday Times reports that Liberal Democrat MP Vera Hobhouse was refused entry to Hong Kong to visit her newborn grandson last week, having her passport confiscated before being questioned and put back on a flight to Britain. Hobhouse has previously criticized China’s crackdown on free speech in Hong Kong.

Government reacts: Foreign Secretary David Lammy responded by saying the incident was “deeply concerning” and that the government would “urgently” raise this with Hong Kong and Beijing authorities to demand an explanation.

China crackdown: The Mail on Sunday reports that Chinese authorities have placed “bounties” of over £100,000 on overseas activists who are seen to have broken its national security laws. Ten of the 19 victims are fugitives to Britain. 

Super embassy: The paper also reveals ominous details of the new Chinese “super-embassy” in London. Plans include two suites of “anonymous unlabelled basement rooms and a tunnel” which the Conservatives say could be used to detain and torture suspected dissidents.

LOCAL ELECTIONS: England is less than three weeks away from local elections, which is being billed as the first big test for Nigel Farage’s Reform UK which has been hammering Labour in the polls. This week’s Sunday Times long read boldly states that these are “the most important local elections for a political generation.”

Steely Mac: The paper notes that the steel industry bail-out should be seen through the lens of taking on Reform, which Starmer’s chief of staff Morgan McSweeney believes will be Labour’s main adversary in working class areas at the next general election.

Blue on blue: A “Downing Street source” added that Labour is the “sideshow” in these elections, with Labour defending around 300 compared to some 900 defended by the Conservatives from its time in office. The paper added that even those loyal to Tory leader Kemi Badenoch expect her party to lose between 400 to 500 of these.

Speaking of: Badenoch has given an interview to the Sunday Times, which won’t give much cause for optimism, quoting the Tory leader’s comments during a Lancashire campaign visit where her situation is not like David Cameron — the Tory leader who returned his party to power and won a further election — but that of William Hague, who lost one and then resigned.

Happy families latest: The Sun on Sunday stokes the fires of Conservative regicide by reporting that Ben Houchen, the Tory mayor of the Tees Valley, is being urged to ditch his peerage and become an MP in order to succeed Badenoch as leader.

QUICK-FIRE CATCH-UP

MP WARRANT: Bangladesh has issued an arrest warrant for Labour MP and former anti-corruption minister, Tulip Siddiq, over … corruption charges. Bangladesh’s Anti-Corruption Commission (ACC) has been investigating Siddiq as part of a wider probe into Sheikh Hasina, her aunt, who was deposed as the country’s prime minister in August after 20 years in charge. A spokesperson for Siddiq said that the claims are “completely false” and “politically motivated.”

TRADE WAR LATEST: The government has set out several measures to ease the impact of United States President Donald Trump’s tariffs. The Sunday Telegraph reports that British import tariffs on 89 products including electric car batteries will be cut to zero for two years, while the Sunday Mirror writes that firms can apply for billions in loans from UK Export Finance and the British Business Bank to ease the burden.

U.S. VS THE WORLD: Chancellor Rachel Reeves told the Observer that she will use a meeting of the International Monetary Fund (IMF) later this month to call for a “more balanced global economic and trading system” that “recognises the benefits of free trade” in contrast to Trump’s policies. She has written an op-ed for the paper.

RUSSIAN SPYING: Russia’s ambassador to the U.K. Andrei Kelin has said he does not reject reports that Russian sensors have been hidden around British waters to track submarines. He told Kuenssberg: “I am not going to deny it, but I wonder whether we really have an interest in following all the British submarine with very old outdated nuclear warheads … all these threats are extremely exaggerated.”

WO IST MEIN HENDY? Rail minister Peter Hendy — who is no stranger to a scandal (or two) over the past decade — has reported himself to the Metropolitan Police after being spotted using his mobile phone to text a friend while driving passengers on a charity bus tour. The Sunday Times has the full story. Texting while driving is illegal and punishable by a fine and six penalty points on your driving license.

ED NEGGING LATEST: The Sun on the Sunday is the latest to suggest that Energy Secretary Ed Miliband is in line to be sacked, or at least is telling his “pals” that he’s worried he’s for the chop.

WOKEWATCH: Paintings-gate rumbles on as the Mail on Sunday reveals the 69 paintings which have been taken down by Downing Street. The Conservatives have accused Keir Starmer of being in thrall to the “wokerati.”

BONQUE: The French government could pull the plug on porn websites by this summer, in a stand-off that is set to reach its climax in the coming weeks, my POLITICO EU colleagues report.

MEDIA ROUND

Ayesha Hazarika on Times Radio (4 p.m. to 7 p.m.): Labour MP Sonia Kumar … Tory MP Christopher Chope … Green MP Adrian Ramsay … Playbook’s own Bethany Dawson.

WEEK AHEAD

MONDAY 14

PARLIAMENT: In recess until 22 April (unless there’s another crisis.)

LOUD NOISES: Judge verdict in Steve Bray case at Westminster Magistrates Court.

TUESDAY 15

SUDAN: Foreign Sec Lammy hosts international summit on Sudan crisis.

ECONOMY: Labor market stats.

WEDNESDAY 16

ECONOMY: U.K. consumer price index inflation data.

TRADE: World Trade Organization trade growth forecast.

THURSDAY 17

CASA BIANCO: Trump hosts Italian PM Giorgia Meloni at the White House.

FRIDAY 18

CASA MIO: Meloni returns the favor by hosting Vice President JD Vance in Italy.

HOLIDAY: Good Friday bank holiday. Four-day weekend.

SATURDAY 19

U.S. PROTESTS: 50501 campaign protests against the Trump administration.

Chag Pesach sameach: A happy Passover to everyone who celebrates!

Writing Monday morning Playbook: Sam Blewett.

Thanks to Joe Stanley-Smith for giving Crunch some Sunday sparkle.

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