- Government to introduce legislation which would give it the
option to nationalise British Steel, subject to public interest
test being met.
- 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 to help deliver on government's Steel Strategy ambitions.
- Move strengthens economic resilience and backs Government's
long‑term ambition for a resilient, modern UK steel sector.
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.
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 today (Monday 11 May) where he set out his plan to
boost our sovereign capabilities, protect British
industry, and prioritise British jobs and industrial
communities.
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 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.
The announcement today follows the launch of the Government's
landmark Steel Strategy in March, which set out its long‑term
plan to revitalise the UK steel sector and bolster economic
resilience by meeting up to 50 percent of UK steel demand
domestically.
Prime Minister 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 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.
Following the Government's intervention in April 2025, British
Steel has continued operating at the Scunthorpe site, protecting
steelmaking capacity and supporting jobs across the local economy
and supply chain, providing reassurance and stability for the
town and its workforce.
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.
