The UK government has brought British Steel into public ownership, saying the move is necessary to protect domestic steel production, preserve thousands of jobs and safeguard a strategically important industry.
Prime Minister Sir Keir Starmer announced the decision on Thursday, describing British Steel as a vital part of the country’s industrial base.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” Starmer said.
The nationalisation affects British Steel’s operations in Scunthorpe, North Lincolnshire, where about 2,700 people are employed directly and many more jobs depend on the plant through local supply chains.
The government took operational control of the Scunthorpe steelworks in 2025 after its Chinese owner, Jingye Group, warned that the site’s last remaining blast furnaces could close. However, ownership had remained with Jingye until Parliament approved new legislation this week allowing the government to nationalise steel companies when deemed to be in the public interest.
Business Secretary Peter Kyle said the new law enabled the government to protect an industry considered essential for the country’s economy, infrastructure and national defence.
“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,” Kyle said.
Jingye has previously stated that British Steel was losing around £700,000 a day and has begun seeking compensation following the nationalisation. The company had not responded publicly to Thursday’s announcement.
An independent assessor will determine whether compensation is payable and, if so, how much the business is worth.
Kyle acknowledged that the government will cover the company’s operating costs in the near term, arguing that allowing British Steel to collapse would have far greater consequences.
“If that business disappears, we will lose the ability for primary steel production in our country,” he said. “We will become entirely dependent on global supply.”
According to a National Audit Office report published in March, the Scunthorpe plant has been costing the government about £1.3 million a day since officials stepped in to keep operations running.
The government has argued that preserving the blast furnaces is essential because their closure would leave the UK without the ability to produce virgin steel from raw iron ore, making it the only G7 nation without primary steelmaking capacity.
Industry representatives welcomed the decision. Simon Boyd, managing director of structural steel manufacturer Reid Steel, said government intervention had become unavoidable. He argued that significant investment would be required over the coming years but described the move as necessary to secure the industry’s future.
British Steel was acquired by Jingye in 2020 after the company entered compulsory liquidation under its previous owner, Greybull Capital. The government said bringing the business into public ownership supports its wider strategy to strengthen British manufacturing, rebuild industrial capacity and reduce dependence on overseas supplies of strategically important materials.
