Keir Starmer and Rachel Reeves are actively considering nationalising British Steel, with the prime minister stating that all options are on the table to secure the future of the Scunthorpe plant. The facility, owned by Chinese firm Jingye, employs around 3,500 people and produces steel for almost all UK rail tracks.
Whitehall sources confirmed that Starmer and Reeves are aligned in viewing steel as of “huge strategic importance”. The possibility of nationalisation was first revealed in December, but discussions have gained urgency due to US tariffs and faltering talks over a financial support package for greener technology. The government is now weighing options from nationalisation to purchasing raw materials to keep blast furnaces operational.
Business Secretary Jonathan Reynolds is set to hold further meetings with British Steel bosses on Wednesday. Meanwhile, Nigel Farage of Reform UK has repeated calls for the government to nationalise the Scunthorpe plant within three days to prevent the closure of its two blast furnaces. Farage criticised the government for “dithering and delaying”, stating that “the UK’s steel industry is broken”.
The steel industry has been impacted by Donald Trump’s tariffs, including a 10% tariff on UK goods and separate levies on steel and aluminium. Starmer told MPs he does not believe the tariffs are a “temporary passing phase” and is preparing for potential retaliation while seeking negotiation. He emphasised that he would not “trade away” the NHS in trade talks.
