The UK government has taken British Steel into public ownership, saying the move is necessary to protect the country's steelmaking industry, secure thousands of jobs and safeguard a sector
it considers vital to national security.
The decision, announced on Thursday, follows the passage of the Steel Industry (Nationalisation) Act, which received Royal Assent earlier this week. Ministers said bringing the company under state ownership was in the national interest after efforts to secure a long-term agreement with its former owner, China's Jingye Group, failed.
British Steel's plant at Scunthorpe is the UK's last remaining site capable of producing steel from iron ore using blast furnaces. The government said preserving production there was essential for major infrastructure projects, defence, transport and energy networks, as well as reducing reliance on overseas suppliers.
Prime Minister Sir Keir Starmer described British Steel as "part of the fabric of our nation" and said the intervention would secure the future of UK steelmaking while protecting skilled jobs.
Business Secretary Peter Kyle said nationalisation was the best way to preserve Britain's steelmaking capability and maintain production. He added that the government's priority would be to stabilise the business, support the communities that depend on it and build a competitive, low-carbon steel industry.
The government first intervened in April 2025 to keep British Steel's blast furnaces operating and prevent the company from closing. Ministers said they had spent more than a year seeking a commercial solution but were unable to reach an agreement with Jingye that represented value for taxpayers.
A new leadership team, including recently appointed non-executive directors, has been tasked with overseeing the company. Their immediate priorities include maintaining production, ensuring safe operations and working with management, trade unions and employees on plans to make the business commercially viable while cutting carbon emissions.
The government said an independent valuer would now assess whether compensation should be paid to the former owners, with details of the compensation scheme expected to be set out in regulations later this year.
The nationalisation forms part of the government's wider industrial strategy aimed at reviving Britain's steel sector. Ministers have pledged up to £2.5 billion to support the industry and have set a target for as much as half of the steel used in the UK to be produced domestically.
Additional measures include financial support for Tata Steel's transition to greener production at Port Talbot, lower energy costs for steel manufacturers and tighter limits on tariff-free steel imports.
The government said public ownership would provide the stability needed to secure British Steel's future while allowing it to explore options for private sector investment in the longer term. Photo by Jonathan Thacker, Wikimedia commons.
