Key facts
- The UK government has nationalised British Steel.
- Parliament passed new legislation allowing the government to take control of the company.
- The move aims to protect jobs, safeguard UK steelmaking capacity, and support national security.
- Jingye, the current owner, is seeking compensation.
- The government may limit or refuse compensation to Jingye.
The UK government has taken British Steel into public ownership to protect the nation's steelmaking capacity and jobs. Parliament recently passed the Steel Industry (Nationalisation) Bill, granting the government powers to nationalise the company under public interest tests, which consider national security and economic resilience.
Prime Minister Sir Keir Starmer stated the decision secures the future of steelmaking in the UK and protects skilled jobs, calling British Steel a cornerstone of Britain's industrial strength. Business Secretary Peter Kyle emphasized the focus on stabilizing the business, supporting communities, and building a sustainable, competitive, and decarbonised steel sector.
The move follows a previous government intervention in April 2025 to prevent the closure of blast furnaces, which would have halted the UK's ability to produce 'virgin steel'. Discussions with the current owner, Chinese firm Jingye Group, failed to result in a commercial sale. Jingye has indicated it is seeking compensation, though the UK government has stated it could limit or refuse such payments.