The UK Government has taken control of British Steel, announcing its nationalization to ensure the future of steel production at the Scunthorpe plant. The Department for Business and Trade stated the decision was crucial for maintaining output, protecting the company's future, and securing vital UK supply chains.
This development follows the recent royal assent of the Steel Industry (Nationalisation) Act 2026, which grants ministers the authority to transfer steel businesses' assets into public ownership. Commons Deputy Speaker Judith Cummins confirmed the news to Members of Parliament. A new leadership team has been appointed to stabilize the business and transition it into a commercially viable, low-carbon enterprise.
Prime Minister Sir Keir Starmer emphasized the significance of British Steel to the nation's industrial strength. "Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability," Starmer said, adding that the government would "always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future."
Business Secretary Peter Kyle asserted that nationalizing the business was essential for securing steelmaking capability and maintaining production. "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 stated.
Previously owned by the Chinese company Jingye, British Steel had planned to close its Scunthorpe blast furnaces. Parliament was recalled last April to pass special measures legislation to keep the plant operational, granting ministers powers to direct the firm's asset management without taking an immediate stake.
According to the National Audit Office, the ongoing operations at the Scunthorpe works had been costing the government approximately £1.3 million daily as of March. Allan Bell, interim chief executive of British Steel, described the nationalization as a "momentous day" that safeguards the company's future and strengthens national security and infrastructure.