British Steel to be brought into public ownership

British Steel could be back in Government hands for the first time since being sold off in 1988, thanks to powers that will be included in new legislation to be set out in the Kings Speech on Wednesday.

“Steel is strategically important to our economy and our national resilience.”

The new powers would be subject to public interest tests, and if used to nationalise British Steel, they would boost national security while giving stability to workers at Scunthorpe, and British Steel’s suppliers and customers.

The Prime Minister announced the new legislation in a speech on Monday 11 May.

The Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of the blast furnaces, which would have disrupted supply chains and risked thousands of jobs.

Since then, the Government has been in discussions with British Steel’s owner, Jingye, to find a pragmatic and realistic solution for the business on acceptable terms. It has not been possible to agree a commercial sale with the current owner, and government does not believe an agreement could be reached which would deliver acceptable value for money for taxpayers.

The Government believes introducing legislation to provide a route to public ownership is the appropriate next step, while recognising that any decision to use the powers in the Bill would be subject to the Bill’s public interest test being met.

The public interest test considers factors including national security, maintaining critical national infrastructure and supporting the economy.

Prime Minister Keir Starmer said, “Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.

“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.”

Business Secretary Peter Kyle said, “Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.

“Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation.”

UK Steel has strongly welcomed the the Government intension to take British Steel into public ownership. Gareth Stace, director-general of UK Steel, said, “This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment. Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience.

“Nationalisation is not an end goal. This must now be the beginning of a clear and credible long-term plan for British Steel. We need to see a detailed investment strategy that supports a managed transition to low-carbon steelmaking, and broader action to tackle the sky-high energy prices in the UK, which are undermining the competitiveness of the steel industry. 

“With the right backing and a supportive policy environment, the UK steel sector can be competitive, support thousands of high-quality jobs, and play a central role in delivering the UK’s industrial and decarbonisation ambitions.”

The new Bill will be formally introduced to Parliament this week. Any decision to bring British Steel into public ownership would only be taken after the Bill receives Royal Assent, and if the public interest test set out in the legislation is met.