The Commons: Theme Parks And Steelworks – Starmer’s Latest Economic Gambit
WPA Pool
In a week of eye-catching announcements, the Labour government has staked its economic vision on two bold developments: the construction of a multibillion-pound Universal theme park in Bedford and a dramatic government takeover of British Steel’s blast furnace operations in Scunthorpe.
Together, they form part of a broader picture of Keir Starmer’s strategy to revive Britain’s economy with a mix of private-sector investment and muscular state intervention. Supporters are calling it visionary while some say it is an expensive gamble. Either way, huge national investments and interventions mark a clear break from the economic orthodoxy of the last decade.
Universal Destinations & Experiences, the company behind blockbuster attractions in Orlando and Los Angeles, announced it would build its first European theme park in the UK. The plans, unveiled by Starmer himself, outline a 476-acre resort that could grow to 700 acres. Once complete, it is projected to draw over 8.5 million visitors in its first year and create 28,000 jobs across construction, tourism, retail, and digital infrastructure. The park is scheduled to open in 2031, with construction expected to begin in 2026.
Theme Park enthusiasts are excited for the new attractions
“This will put Bedford on the global stage,” said Starmer during a site visit to Kimberley College in Stewartby. Even his teenage children, he joked, took an unusually keen interest in the announcement.
For Universal, the decision to build from scratch in Britain is a first. While the company did contribute towards Spain’s Port Aventura, Universal Great Britain will be its first wholly owned and designed European park. It will include a 500-room hotel, a retail complex, and improved transport connections, including upgrades to Wixams station and a new East West Rail line stop.
According to Culture Secretary Lisa Nandy, the park will highlight American and British cultural exports: “These are things like James Bond, Paddington Bear, these are things like Harry Potter. We've got so much to be proud of.”
Chancellor Rachel Reeves also confirmed that British steel would be used “where possible” in the park’s construction, a comment hinting at another significant economic moment that Labour is grappling with.
While Bedford prepares for lights, cameras, and action, 150 miles north in Scunthorpe, the mood is far grimmer. In an unprecedented intervention, the government invoked emergency powers to seize operational control of British Steel’s blast furnaces, the last in the UK capable of producing virgin steel.
The move followed revelations that Jingye, the Chinese conglomerate that owns British Steel, had refused to purchase vital raw materials, threatening an immediate shutdown of primary steelmaking. Without intervention, the government warned, the UK would have become the only G7 nation without the ability to make its own virgin steel.
Business Secretary Jonathan Reynolds has made things clear that: “Jingye would have unilaterally closed down primary steelmaking in Britain. We couldn’t allow that.” Under emergency legislation rushed through Parliament, ministers secured new shipments of coking coal and iron pellets. They were also granted authority to direct company staff and reinstate any workers let go by the owners.
Though technically still owned by Jingye, the plant is now being managed under direct government control, a temporary fix that could soon evolve into complete nationalization. Reynolds acknowledged in parliament that public ownership is now “the likely option.” According to Labour, the economic logic behind both moves is straightforward: investment and industrial strength must go hand in hand.
The Scunthorpe site, employing 2,700 people, produces high-grade steel for everything from railway tracks to major construction projects. If allowed to shut down, restarting production would have been nearly impossible. The furnaces operate at extreme temperatures and cooling them down incorrectly risks permanent damage.
But keeping them running is not cheap. The plant is reportedly losing £700,000 a day. A broader UK Steel Fund, worth £2.5 billion, is expected in the coming months to help cover operating losses while the government seeks a private partner.
At the same time, Labour is banking on private sector investment to help revive neglected regions. Universal’s Bedford resort is pitched as a keystone project, offering thousands of jobs in Luton, Central Bedfordshire, and Milton Keynes, as well as billions in long-term tourism revenues.
Still, the dual approach, aggressive state rescue on the one hand, flashy foreign capital on the other, has raised questions. Can both be pursued?
In Bedford, the reaction has been mostly upbeat. Maria Perez, a warehouse worker, told the BBC the park would be “great for families and young people,” though she worried it might push up rents. Business analyst Jagdeep Singh welcomed the jobs but feared traffic chaos and pressure on local hospitals.
Back in Scunthorpe, feelings are more complicated. While many welcomed the government’s intervention, the shadow of uncertainty looms. Taxpayers are now footing the bill for an industry facing global oversupply and high energy costs. With US tariffs on UK steel and cheap Chinese exports flooding markets, some wonder whether the government’s plan has longevity.
Labour’s latest moves reveal more than short-term policy fixes, they signal a fundamental shift in how government views its economic role. Under Starmer, Labour is staking its political future on an activist state that works hand-in-hand with the private sector but will not hesitate to step in when vital national assets are at risk.
It is a departure from the laissez-faire policies of recent Conservative governments, and perhaps a return to something closer to post-war economic planning, albeit updated for the challenges of the 21st century. Whether these bets will pay off remains to be seen, but one thing is sure: after a decade of economic stagnation, Labour is desperately trying to change the story.
