The Department for Business and Trade (DBT) said it was essential to maintain steel production at British Steel’s site in Scunthorpe, Lincolnshire, and protect both the company’s future and UK supply chains. The decision, enabled by new legislation, protects thousands of jobs at British Steel, following the government's seizure of day-to-day control of the business last year to save the industry from collapse.
Prime Minister's statement
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. 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.”
New legislation enables public ownership
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.”
Background and impact
British Steel was previously owned by the Chinese company Jingye. The company had planned to close its Scunthorpe blast furnaces in North Lincolnshire, only for parliament to be recalled on a Saturday in April last year to approve special measures legislation to keep the plant open. 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.”
