The government is preparing to block a major dividend payment to the owner of British Steel, sources say. It would be a stunning intervention. A direct challenge to corporate sovereignty.
No 10 is terrified of a political backlash. The narrative is simple: taxpayer cash bails out a failing company, then its foreign owner funnels profits straight out of the country. Labour is already sharpening its knives.
Backbenchers are restless. The decision rests with Michael Gove, who has been quietly consulting Treasury mandarins. Insiders tell me the mood in the department is 'pragmatic nationalism'.
A cabinet source put it bluntly: 'We can't look like we're patsies.' The company in question, Jingye Group, acquired British Steel in 2020. Since then, the business has haemorrhaged cash.
The government stepped in with a £300m support package. Now Jingye wants to repatriate profits. The Business Department is pushing back.
Legal advice suggests they can use Section 43 of the Enterprise Act. It has never been used this way. The precedents are murky.
But the political reality is clear: doing nothing is not an option. The unions are baying for blood. The Telegraph is running a campaign.
Even the old Brexit ultras are backing state intervention. Strange times. A senior minister told me this morning: 'It's about national security.
Steel is a strategic asset.' The Treasury is worried about sending the wrong message to investors. But the political calculus has shifted.
The Prime Minister's approval rating is underwater. He cannot afford to be seen as soft on foreign firms. The announcement could come as early as tomorrow.
A source familiar with the boardroom negotiations says Jingye is 'surprised and angry'. They thought they had a deal. They underestimated Westminster.
This is a game of chicken. The stakes are high. If the government blocks the payout, it will set a precedent.
Other foreign owners will be watching. Cabinet is split. Liz Truss is understood to be opposed.
Others, including Rishi Sunak, are supportive. The final word rests with the PM. He is keeping his cards close.
The lobby is buzzing. This is the kind of story that defines a parliament. Stay tuned.
