Keir Starmer says the decision secures the future of UK steelmaking
The Government has brought British Steel under public ownership (Image: Getty)
British Steel has been brought into public ownership in a move aimed at protecting UK steelmaking. The Government assumed control of British Steel’s operation in Scunthorpe, Lincolnshire, last year, as it rushed to save it from closure.
Up until now, it had remained under the ownership of Chinese company Jingye, which had been planning to close its blast furnaces at the site.
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Prime Minister Sir Keir Starmer said: “Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.”
Jingye has reportedly started the process to seek compensation for the nationalisation, although the Government has said it could limit or refuse it. It had said the business was losing £700,000 per day.
News of the nationalisation comes after the Steel Industry (Nationalisation) Act 2026 became law on Wednesday (July 15) after receiving royal assent.
The new law allows ministers to transfer steel businesses’ shares or property into public ownership.
It is understood the Government had previously tried to negotiate with British Steel’s owners on a commercial sale of the company, but they failed to strike a deal.
Ministers seized control of the plant in Scunthorpe in April last year after its Chinese owners suggested its last two blast furnaces could be shut down.
The steelworks employs about 2,700 people (Image: Getty)
Such a move would have meant the UK would no longer have been able to produce “virgin steel”, which contains fewer impurities than recycled steel.
A Department for Business and Trade spokesperson said on Wednesday that the Steel Act would provide powers to nationalise steel companies “where it’s necessary in the public interest”.
They said the Act would also protect a foundation industry which supports Britain’s critical, national infrastructure, economy and defence.
The spokesperson said yesterday: “We’ve been clear that we’re strongly minded to use these powers in relation to British Steel.”
Union bosses welcomed the new law. Community Trade Union’s national secretary for steel Paul McKenna said: “The importance of this legislation cannot be overstated.”
Charlotte Brumpton-Childs, national secretary at the GMB Union, said: “It’s no exaggeration to say ministers have saved the UK steel industry.
“But the hard work to keep it alive starts here, beginning with a commitment to public infrastructure projects to buy British.”
