UK Government moves to renationalise British Steel
British Steel would be government run since privatisation in 1988, under laws to be in the King's Speech on Wednesday.
Primary legislation would give government a route to safeguard UK steelmaking capacity and avoid sudden halt of production at Scunthorpe, while it considers options for British Steel.
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.
It thinks it is possible to agree a deal that delivers acceptable value for money for taxpayers with the current owner.
The government believes introducing legislation to provide a route to public ownership is the appropriate next step, if public interest test is met. This includes the consideration of national security, critical national infrastructure and economic support.
The current government announced its Steel Strategy in March, which aims to meet up to half of UK steel demand domestically.
Prime Minister Keir Starmer says, '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.'
