Government brings British Steel into public ownership to protect UK steelmaking
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Government concludes it is in the public
interest to take ownership of British
Steel, protecting the future of steel
production in the UK. The decision will protect
thousands of jobs, support industry that relies on UK made steel
and helps to safeguard supply chains, major
infrastructure projects and national
security. ...Request free trial
The Government has today (16 July) taken British Steel into public ownership to protect the future of steel production in the UK. The move follows the Steel Industry (Nationalisation) Act receiving Royal Assent and comes after Ministers concluded that bringing the company into public ownership was necessary to protect the UK's national interest. Steel plays a vital role in the UK economy, supporting major construction projects, transport networks, energy infrastructure, defence and the delivery of our Modern Industrial Strategy. Maintaining steel production at British Steel's Scunthorpe site is considered essential to preserving the UK's ability to make steel domestically. After assessing the impact on the country's economy, critical infrastructure and national security, the Business Secretary 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 wider support for the UK steel sector including the first ever Steel Strategy, published in March and backed by up to £2.5bn of investment, which set an ambition for up to 50% of steel used in the UK to be made in the UK. This is on top of a new trade measure which limits tariff-free steel imports into the UK by reducing overall quota volumes by 51%, £500m for Tata Steel to support its Port Talbot green steel transformation, and support for steel firms' energy costs worth hundreds of millions of pounds per year through the Supercharger and British Industrial Competitiveness Scheme. Prime Minister 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. This Government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future. Business Secretary Peter Kyle said: British Steel is one of the nation's biggest steel producers, and I've made the decision to nationalise the business to secure steelmaking capability and maintain production in the national interest. 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. 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. Despite extensive discussions, it was not possible to reach an agreement with the former owner Jingye that would secure the future of the company while delivering value for taxpayers. Parliament has now provided the powers needed to act, and government has decided that bringing British Steel into public ownership is the right and necessary course of action. Now that Royal Assent has been achieved, the public interest test has been met and the business brought into public ownership, the Act requires an independent valuer to be appointed 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 on site, 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. A strong domestic steel industry is critical to the Government's plans to reindustrialise Britain, strengthen national resilience and reduce reliance on overseas supply chains for strategically important materials. Public ownership provides the immediate platform from which the Government can stabilise the company and consider its future direction by exploring what opportunities there may be to deliver a long-term future for the company, including exploring possible options for private sector investment. Chancellor of the Exchequer Rachel Reeves said: Bringing British Steel into public ownership is the right thing to do so we can stabilise the business going forward, protect UK steelmaking and the communities it supports. We are backing British industry and investing in the industries that create growth with steel vital to our security, resilience and economic strength. British Steel Interim CEO Allan Bell 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. We are grateful to the UK Government for the decisive action it has taken, and the support it has given our business and our people during such a challenging period. Together, we look to the future with great optimism and will work together to make the world-class steel Britain needs now and for decades to come. Community Union General Secretary Roy Rickhuss CBE said: We at Community offer our thanks to this Government for passing this important piece of legislation, which will help to secure the long-term future of the UK's steel sector. Steel is the lifeblood of so many communities in the UK and this new law will help to safeguard thousands of jobs, ensuring greater stability in an industry which has had to weather many storms in recent years. Charlotte Brumpton-Childs, GMB National Secretary, said: The Government has taken timely, decisive intervention on British Steel - as it has throughout this process. It's no exaggeration to say Ministers have saved the UK steel industry. But the hard work to keep it alive starts here; beginning with a commitment to public infrastructure projects to buy British. Today's move builds on the Government's Steel Strategy, launched in March, which sets out a longterm plan to revitalise the UK steel sector, restore domestic production to sustainable levels and secure steel's role in critical sectors including national infrastructure, defence and clean energy. ENDS Notes to editors
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