The UK Government has placed British Steel into public ownership to safeguard the future of steel production in the country, the Department for Business and Trade announced. The move is deemed essential to maintain steel output at the company's Scunthorpe site in Lincolnshire, protecting both the firm's viability and domestic 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.
New Leadership and Commercial Sustainability
A new leadership team has been appointed to stabilise the business and transform it into a commercially sustainable, low-carbon enterprise, the Government said. 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: “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 grants ministers authority to transfer steel businesses' shares or property into public ownership. Business and Trade 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.”
Previous Ownership and Legislative Background
British Steel was formerly owned by Chinese company Jingye. The firm 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 direct the company on asset use and management, though they did not take a stake at that time.
British Steel interim chief executive Allan Bell commented: “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.”
