Key facts
- The UK government has nationalized British Steel, taking it into public ownership.
- This decision aims to protect the future of steel production in the UK and safeguard thousands of jobs.
- The move follows the Chinese owners, Jingye Group, considering the closure of blast furnaces at the Scunthorpe plant.
- A new leadership team has been appointed to stabilize the business and develop a sustainable, low-carbon future.
- An independent evaluation will assess compensation for the former owner.
The UK government has nationalized British Steel, bringing the company into public ownership to secure the future of steel production in the country. The decision, announced on July 16, aims to protect thousands of jobs, support industries reliant on UK-made steel, and safeguard national security and critical infrastructure.
The government stepped in operationally in April 2025 to prevent the closure of blast furnaces at the Scunthorpe plant, which are the last in the UK to produce "virgin steel" from raw materials. Despite extensive discussions, an agreement with the former owner, China's Jingye Group, could not be reached that would secure the company's future while delivering value for taxpayers.
Business Secretary Peter Kyle stated that British Steel now belongs to the British people, with a focus on stabilizing the business, supporting its communities, and building a sustainable, competitive, and decarbonized steel sector. Prime Minister Keir Starmer emphasized that the decision secures a vital national capability and reinforces the government's commitment to supporting British industry.
The Steel Industry (Nationalisation) Act has received Royal Assent, granting the government the necessary powers. An independent valuer will be appointed to assess whether any compensation is payable to Jingye Group, with a compensation scheme expected in the autumn. This move is part of wider support for the UK steel sector, including a £2.5 billion investment in the Steel Strategy, reduced import quotas, and support for energy costs.