British Steel has been brought into public ownership in what the government called a bid to "protect UK steelmaking", ending months of uncertainty over the future of the Scunthorpe steelworks. The nationalisation, announced on Thursday, secures the jobs of about 2,700 employees and safeguards a facility that produces "virgin steel" for railways, construction and defence.
Prime Minister Sir Keir Starmer said: "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."
“British Steel has been nationalised to protect UK steelmaking, safeguarding 2,700 jobs and vital supply chains.”
The government first took operational control of the plant in April 2025 after its Chinese owner, Jingye Group, warned it was preparing to close the last two blast furnaces. If the furnaces had been starved of fuel and gone out, the UK would have lost the ability to produce virgin steel from scratch. At the time, Jingye said the business was losing £700,000 a day.
Jingye has since begun the process of seeking compensation for nationalisation. The government has said it could limit or refuse compensation, and will appoint an "independent valuer" to assess whether any payment is due. The compensation scheme is expected to be set up through regulations in autumn.
Business Secretary Peter Kyle said: "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."
Kyle told Times Radio that the long-term future of the blast furnaces would be a decision for the business and government. "It is the intention of the steel strategy that we move towards green steel," he said.
The nationalisation was enabled by the Steel Act, passed by Parliament on Wednesday, which gives ministers powers to bring steel companies into public ownership when it meets a public interest test. The Department for Business and Trade said the act was designed to protect a "foundation industry that supports our critical national infrastructure, economy and defence".
A National Audit Office report in March found that operating the Scunthorpe steelworks was costing the government about £1.3m a day.
British Steel's interim chief executive, Allan Bell, called it an "historic day for Britain and UK manufacturing". He said: "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."
The government had previously sought private investors before opting for full nationalisation. With the steelworks now in state hands, attention turns to its long-term viability and the challenge of transitioning to green steel production while keeping the plant competitive.