Government brings British Steel into public ownership
The move follows the Steel Industry (Nationalisation) Act receiving Royal Assent on 15 July 2026.
Ministers conclude that bringing the company into public ownership is necessary to protect national interest and essential to preserve the UK’s ability to make steel domestically.
Steel plays a vital role in the UK economy, supporting major construction projects, transport networks, energy infrastructure, defence and the delivery of the Modern Industrial Strategy.
After assessing the impact on the country’s economy, critical infrastructure and national security, Business Secretary Peter Kyle MP concluded that government ownership was the best way to secure the company’s future and protect the UK’s steelmaking capability and supply chains.
This follows the first ever Steel Strategy published in March, and backed by up to £2.5bln of investment. It set an ambition for up to 50% of steel used in the UK to be made in the UK.
Prime Minister Keir Starmer comments, '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.'
Business Secretary Peter Kyle adds, 'The government stepped in at British Steel in April 2025 to keep the blast furnaces running and prevent a disorderly closure that would have put steel production, supply chains and thousands of jobs at risk. Since then, Ministers and officials have worked intensively to find a long-term solution for the business.'
The government reports that, despite extensive discussions, it was not possible to reach an agreement with the former owner Jingye to secure the company's future while delivering value for taxpayers. Parliament has now provided the powers needed to bring British Steel into public ownership.
Now that the Steel Industry (Nationalisation) Act has received Royal Assent and the business has been brought into public ownership, the Act requires an independent valuer to assess whether any compensation is payable. The compensation scheme will be set up through regulations expected in autumn.
The first priorities for the new leadership team – made up of newly-appointed Non-Executive Directors – will be stabilising operations onsite, managing health and safety effectively, maintaining production, and working closely with management, trade unions and staff on proposals to make British Steel a commercially sustainable, low-carbon enterprise.
Speaking today, Dr Jitendra Patel CEng FIMMM, Chair of the IOM3 Iron & Steel Group, comments, ‘We recognise the benefits of bringing British Steel into public ownership at this time, conveying a period of much-needed stability and security. However, fundamental challenges facing the sector remain, including the future of Speciality Steel UK Ltd, and the UK's overall ability to produce specific types and quality of steel needed for key elements of our infrastructure, energy and defence requirements.
'Hence, it is critical that there is adequate and detailed support in place for the transition to low-carbon, sustainable steel production, and allied rolling facilities and usage, alongside the availability of lower-cost, clean energy.’
Steelworkers’ union Community welcomes the passing of the Steel Industry (Nationalisation) Act. It believes the legislation creates stronger framework for the government to intervene in the steel industry when it is in the public interest to do so.
National Secretary for Steel, Paul McKenna, says, 'The importance of this legislation cannot be overstated. Its swift progress through Parliament proves something Community has known for a long time - that the steel industry is a strategic national asset vital to our economy and national security.'
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