UK government brings British Steel under public ownership

British Steel has been brought under public ownership to protect "the future of steel production in the UK", the government has announced.

The Department for Business & Trade said the move was essential to maintain steel production at British Steel's site in Scunthorpe, Lincolnshire, to protect both the company's future and UK supply chains.

The announcement follows the Steel Industry (Nationalisation) Act 2026 receiving royal assent and becoming law.

Commons Deputy Speaker Judith Cummins confirmed the news to MPs on Wednesday.

A new leadership team has been appointed to focus on stabilising the business and turning it into a "commercially sustainable, low-carbon enterprise", the government said.

Prime Minister Keir Starmer said: "British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength.

"Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability."

He continued: "This government will 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."

The new law allows ministers to transfer steel businesses' shares or property into public ownership.

Business Secretary Peter Kyle said: "British Steel is one of the nation's biggest steel producers, and I've made the decision to nationalise the business to secure steelmaking capability and maintain production in the national interest.

"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."

British Steel was previously owned by the Chinese company Jingye.

The company had planned to close its Scunthorpe blast furnaces in North Lincolnshire.

But Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open.

Ministers gained new powers to tell the firm how it can use and manage its assets. They did not take a stake in the company at the time.

British Steel interim chief executive Allan Bell said: "This is a momentous day for British Steel, and everyone connected with our business – our dedicated employees, our valued customers and suppliers, and the tens of thousands of people in our supply chains and local communities.

"Much more than that, it is an historic day for Britain and UK manufacturing – one which safeguards our future and strengthens national security and infrastructure."

Chancellor of the Exchequer Rachel Reeves said: "Bringing British Steel into public ownership is the right thing to do so we can stabilise the business going forward, protect UK steelmaking and the communities it supports."

Charlotte Brumton-Childs, national officer of the GMB union, said: "The government has taken timely, decisive intervention on British Steel – as it has throughout this process.

"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.

"GMB also demands a worker voice in the new nationalised company, so those who rely on the business will be in the boardroom and it will never be solely at the whim of foreign enterprise."

Alasdair McDiarmid, assistant general secretary of the Community trade union, said: "This new law will enable steel companies to be brought into public ownership, where necessary, which will help to safeguard thousands of jobs and ensure the UK retains the capability to produce the steel our economy and national security depends upon.

"The Labour government has shown continued support for the steel sector and we look forward to seeing the UK Steel Strategy implemented in full."

The union's national secretary for steel, Paul McKenna, said: "The importance of this legislation cannot be overstated. Its swift progress through Parliament proves something Community has known for a long time – that the steel industry is a strategic national asset vital to our economy and national security."

UK Steel director-general Gareth Stace said: "British Steel produces products that are fundamental to building and maintaining the nation's railways, infrastructure and manufacturing base.

"Retaining this capability in the UK is essential to strengthening our industrial resilience, supporting economic growth and reducing reliance on imports in an increasingly uncertain world.

"Bringing British Steel into public ownership is the right move. As the next government takes office next week, its priority must now be to deliver a long-term plan that restores British Steel to commercial sustainability, secures investment in modern, low-carbon steelmaking and creates the competitive business environment the sector needs to thrive."

By Jessica Coates, Press Association

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.