The UK Government has brought British Steel under public ownership to protect “the future of steel production in the UK,” the Department for Business and Trade announced. The move, deemed essential to maintain steel production at British Steel’s Scunthorpe site in Lincolnshire, aims to safeguard the company’s future and UK supply chains.
Legislation and Immediate Actions
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 stabilise the business and transform it into a “commercially sustainable, low-carbon enterprise,” the Government said.
Political and Union Reactions
Prime Minister Sir Keir Starmer stated: “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 added that the Government will always act in the national interest to support British industry.
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.”
Chancellor Rachel Reeves commented: “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.”
Background and Industry Context
British Steel was previously owned by Chinese company Jingye, which had planned to close the Scunthorpe blast furnaces. Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open. The new law allows ministers to transfer steel businesses’ shares or property into public ownership.
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.”
Union and Industry Support
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.”
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.” Paul McKenna, the union’s national secretary for steel, added: “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.” He called for a long-term plan to restore British Steel to commercial sustainability and secure investment in modern, low-carbon steelmaking.
TUC general secretary Paul Nowak said: “This is a vital step forward for our steel industry and one that will save thousands of jobs, protect the sector as a whole and ensure Britain retains the capability to produce steel at home. Nationalising British Steel is the right thing to do and it’s in the national interest. But more work needs to be done to ensure the long-term future of the sector, including bringing down industrial energy costs.”
