- British Government says public ownership will protect strategic steelmaking, preserve thousands of jobs, and strengthen Britain’s industrial future.
The UK government has officially brought British Steel into public ownership, marking a major intervention aimed at safeguarding the country’s steelmaking capacity, protecting thousands of jobs, and securing a strategically important national industry.
Prime Minister Sir Keir Starmer described the move as a decisive step to protect Britain’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.
British Steel, which employs around 2,700 workers at its Scunthorpe steelworks and supports thousands more jobs across North Lincolnshire, has faced years of financial uncertainty.
Although the government assumed operational control of the plant in 2025, ownership had remained with China’s Jingye Group until Parliament approved legislation enabling full public ownership.
Steel Declared a Strategic National Asset
Business Secretary Peter Kyle said the nationalization reflects the government’s commitment to securing the long-term future of Britain’s steel industry.
“British Steel now belongs to the British people,” he said, adding that the priority is to stabilize the business, support local communities, and build a competitive, sustainable, and decarbonized steel sector, according to BBC.
The government said the newly enacted Steel Act allows the state to nationalize steel companies when it is deemed necessary in the public interest, particularly to protect industries vital to national infrastructure, economic resilience, and defense.
Protecting the UK’s Steelmaking Capability
The government intervened after Jingye warned it could close the last two remaining blast furnaces at Scunthorpe. Officials feared that shutting the furnaces would leave the UK without the ability to produce virgin steel—steel manufactured directly from iron ore—a capability considered essential for major infrastructure projects, including railways, buildings, and other critical construction.
Restarting blast furnaces after closure would have been technically difficult and prohibitively expensive.
Compensation Dispute Continues
Jingye, which acquired British Steel in 2020 after the company entered compulsory liquidation under previous owner Greybull Capital, has begun seeking compensation following the nationalization.
The Chinese firm had previously said the company was losing around £700,000 per day, while the UK government has indicated it may reduce or reject compensation claims.
A report by the National Audit Office released in March estimated that maintaining the Scunthorpe operations has been costing the government approximately £1.3 million per day.
The government said public ownership will help rebuild Britain’s industrial capacity while reducing dependence on overseas supply chains for strategically important materials.
