That’s it settled – £50 from each of you to save jobs in Scunthorpe and don’t talk to us about Barnett

Thanks to Dottie for alerting me to this.

In the Guardian today:

British Steel has formally been taken into public ownership 15 months after the government stepped in to prevent the closure of its steelworks in Scunthorpe and the loss of 4,000 jobs.

Keir Starmer on Thursday said that it was in the national interest for the government to take over the factory from its Chinese owner, Jingye, in one of the last significant actions overseen by him as prime minister after the Steel Industry (Nationalisation) Act received Royal Assent on Wednesday. https://www.theguardian.com/business/2026/jul/16/british-steel-public-ownership-save-uk-supply-scunthorpe

What will the upfront costs be?

Around £1bn – https://www.nao.org.uk/press-releases/government-spends-377-million-in-9-months-to-keep-british-steels-scunthorpe-site-operating/

Longer term costs?

If losses persist and with decarbonisation/modernisation, pensions and many other costs – £1.5bn, just to 2028. https://www.nao.org.uk/press-releases/government-spends-377-million-in-9-months-to-keep-british-steels-scunthorpe-site-operating/

Total £2.5bn just to 2028.

Will Scottish taxpayers pay a share of this?

Yes, Scottish taxpayers will indirectly pay a share of the costs through the UK tax system. https://www.instituteforgovernment.org.uk/article/explainer/barnett-formula

£200 million, £50 each adult in Scotland, to keep jobs in England in the wake of jobs in Scotland, eg Grangemouth, not saved by taxpayers in England.

Will we get it back via the Barnett Consequentials?

This spending does not automatically trigger a Barnett “consequential” increase to Scotland’s block grant. Scotland does not get extra devolved funding to offset it, but nor does it avoid contributing via taxes. https://www.instituteforgovernment.org.uk/article/explainer/barnett-formula

In short, Scottish taxpayers help fund it centrally but do not receive a proportional boost to Holyrood’s budget for this specific English industrial support.

Have any comparable rescues ever resulted in Barnett consequentials for Scotland?

No clear examples of directly comparable rescues (e.g., nationalisation or emergency support for a specific English industrial site like British Steel) have triggered Barnett consequentials for Scotland. https://www.instituteforgovernment.org.uk/article/explainer/barnett-formula

For example, the £500m plus package for Port Talbot (Wales) in 2025 revealed no public reports of automatic Barnett consequentials for Scotland. https://researchbriefings.files.parliament.uk/documents/CBP-7317/CBP-7317.pdf

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6 thoughts on “That’s it settled – £50 from each of you to save jobs in Scunthorpe and don’t talk to us about Barnett”

  1. Cannot bring myself to “like” this. Sorry!!! It sets what teeth I have left right on edge so obvious was this move.

    Angry just doesn’t begin to cover it.

    Liked by 2 people

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  2. We had Peter Kyle on TV spouting forth about how they had to save it and not depend on foreign imports and it was good for the north,nearly chucked my coffee mug at TV makes me mad that some Scots cant see what they are doing to us.

    Liked by 3 people

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  3. No rescue for Ravenscraig, the largest hot strip steel mill in Europe, when it was shut down in 1992. No rescue for Gartcosh when it was closed in 1986. But now Westminster says that the loss of steel making is bad for national security. Yes, we know.

    From March 2025:

    Britain becomes only G7 country unable to make new steel

    “A country that can’t make its own steel is a country that’s less safe and less sovereign. Labour must get back round the table and do whatever it takes to save this industry. They cannot let the flame go out on their watch.”

    British Steel: Scunthorpe furnaces to close ending 150 years of UK production

    Liked by 1 person

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  4. Meanwhile they are sanctioning Scotland by booking Chinese renewables investment etc.
    Don’t worry this will only get worse, for Scotland. The BritNat state, they aren’t daft are they, ripping off Scotland as much as they want since 1707, and there is absolutely nothing Scotland can do about it in 2026.
    O/T
    Anyone travelling into Edinburgh next few weeks (probably months) beware, or just dint in fact.
    The Labour/Tory council have closed down half of the main part of the city re Princes st, they say to assess the damage of the burnt out building and make it safe. Someone’s rubbing their hands together I bet, no doubt even more contracts being handed out to private companies in England, while the city will be absolutely chaotic during the festival. Things, can only get worse…from when the Tories and Labour stole the last council election from the SNP, the capital city of Scotland has been turned into an absolute mess.

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    2. In Edinburgh Thursday and Friday Uber driver Saturday morning said no need for it to be closed pedestrians walking along Princess Street so why not vehicle’s

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