The UK government has officially brought British Steel into public ownership under the newly enacted Steel Industry (Nationalisation) Act 2026, a move described as essential to safeguard the future of steel production in the country. The Department for Business and Trade confirmed that the decision is critical to maintaining operations at British Steel’s Scunthorpe site in Lincolnshire, protecting both the company’s viability and broader UK supply chains.
Legislation and Immediate Steps
Commons Deputy Speaker Judith Cummins informed MPs of the nationalisation on Wednesday, following the act receiving royal assent. The new law grants ministers the authority to transfer shares or property of steel businesses into public ownership. A new leadership team has been appointed to stabilise the company and transition it into a commercially sustainable, low-carbon enterprise.
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.
Background and Previous Ownership
British Steel was previously owned by Chinese company Jingye. The firm had planned to close its Scunthorpe blast furnaces, but Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open. At that time, ministers gained powers to direct the company’s asset management but did not take a stake.
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.”
Reactions from Officials and Unions
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.”
British Steel interim chief executive Allan Bell called it “a momentous day for British Steel and everyone connected with our business… an historic day for Britain and UK manufacturing – one which safeguards our future and strengthens national security and infrastructure.”
Union leaders also praised the move. Charlotte Brumton-Childs, national officer of the GMB union, said: “The Government has taken timely, decisive intervention on British Steel… 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 the 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… the steel industry is a strategic national asset.”
Industry Perspective
UK Steel director-general Gareth Stace noted: “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… 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.”
