Emergency measures by the government last month to nationalise the UK’s last plant that makes steel from scratch have reopened questions over the ownership of key national assets.
Ministers’ hands were forced after British Steel’s Chinese owners, Jingye Group, threatened to close the two blast furnaces in Scunthorpe.
Business secretary – and Labour/Co-op MP – Jonathan Reynolds may now direct the company’s board and workforce, ensure its workers are paid and order the raw materials needed to run the site.
The crisis laid bare the need to protect key assets in the interests of national security – and led to renewed discussion of alternative models.
James Wright, policy lead at Co-operatives UK, said: “Ownership, in broader terms, is increasingly becoming something we think about. The turbulence of recent years, from the pandemic to global political shifts and economic uncertainty, is prompting people to ask deeper questions about who really owns and controls the things that matter. Whether that’s our industries, our infrastructure, our data, or those things that tie communities together.”
While steel – along with some other sectors – present complexities around scale, capital, national interest, and global markets, Wright said: “These cases still underline how fragile and extractive ownership models can be. When strategic assets are at the mercy of distant shareholders or short-term decisions, it’s the workers, local communities and wider public who bear the brunt.”
This is not the first time a national crisis has sparked a conversation around mutualism. Previous threats to steelmaking at Port Talbot – which finally closed last year – aroused interest in the co-op model in 2017. And the collapse of construction giant Carillion in 2018 prompted debate over the prevailing outsourcing model for state contracts – debate which continues today with the community wealth building movement.
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More recently, the Horizon postmasters scandal prompted suggestions that the Post Office be mutualised. However, Fujitsu, the outsourcer embroiled in the scandal, continues to receive government work.
Wright added: “Member ownership and control must be part of the national conversation when it comes to the biggest institutions (as well as the smallest ones). It makes sense that those with the biggest stake – whether that’s workers, users, patients, communities or others – have meaningful democratic control over the assets, services and data that affect their lives.
“We’re seeing growing interest in co-operatives and mutuals. With rising public concern about data privacy and control – particularly in relation to AI and questions over ownership – co-operative models provide a powerful alternative. They offer a way to ensure that data and digital infrastructure serve the common good, not just corporate profit.
“We are sharpening our thinking and advocacy around ownership. With government’s ‘doubling the size’ ambitions we’re committed to demonstrating how co-operatives – with the right support – can underpin a fairer, more resilient and well-being enhancing economy.”
