…Government takes full ownership of British Steel, citing national interest, job protection and long-term industrial security.
The UK government has taken British Steel into public ownership, completing the nationalisation of the company in a move aimed at safeguarding the country’s steelmaking capacity, protecting thousands of jobs and securing a critical national industry.
Announcing the decision on Thursday, Prime Minister Sir Keir Starmer said the move would preserve Britain’s steelmaking capability and protect skilled employment.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” Starmer said.
British Steel operates the Scunthorpe steelworks in north Lincolnshire, which employs about 2,700 people and supports thousands more jobs across the wider manufacturing supply chain.
The company had remained under the ownership of China’s Jingye Group despite the UK government taking operational control of the Scunthorpe plant last year amid fears of its closure.
Starmer described British Steel as “part of the fabric of our nation and a cornerstone of Britain’s industrial strength,” adding that the government would continue to support industries considered vital to the country’s economy and national security.
Business Secretary Peter Kyle said the government’s priority was to stabilise the company and build a modern, competitive and environmentally sustainable steel industry.
“British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead,” he said.
The nationalisation follows the passage of new legislation on Wednesday granting the government powers to take steel companies into public ownership where doing so serves the public interest.
Officials had previously sought private investors to rescue British Steel but ultimately concluded that public ownership was the best option.
The Department for Business and Trade said the new Steel Act allows the government to nationalise steel companies where necessary to protect an industry considered essential to the country’s economy, defence and critical infrastructure.
The move is expected to trigger a compensation dispute with Jingye Group, which has already begun seeking compensation after previously stating that British Steel was losing about £700,000 ($950,000) a day. The UK government, however, has indicated it could reduce or reject any compensation claim.
A report by the National Audit Office released in March estimated that supporting the Scunthorpe steelworks had been costing the government about £1.3 million daily.
The government stepped in to seize operational control of the plant in April 2025 after Jingye warned it could shut down the site’s last two blast furnaces, raising fears that Britain could lose a significant portion of its primary steelmaking capacity.
