The UK government has officially taken local steelmaker British Steel into public ownership after the Steel Industry (Nationalization) Act received Royal Assent, concluding that nationalization is in the public interest and necessary to protect the country's steelmaking capability.
The decision is intended to safeguard steel production at British Steel's Scunthorpe works, protect thousands of jobs and secure supply chains supporting infrastructure, defense and other strategic industries.
Government cites national interest
According to the government, the decision followed an assessment of the potential impact on the UK's economy, critical infrastructure and national security.
Peter Kyle, Business secretary, concluded that public ownership was the most appropriate way to secure the company's future after negotiations with former owner Jingye failed to produce an agreement that would both safeguard the business and provide value for taxpayers.
The government had already intervened at British Steel in April 2025 to keep the company's blast furnaces operating and prevent their closure.
New leadership team appointed
The government has appointed a new leadership team comprising newly appointed non-executive directors.
Their immediate priorities include stabilizing operations, maintaining production, overseeing health and safety, and working with management, employees and trade unions to develop proposals for a commercially sustainable, low-carbon future for the business.
Under the new legislation, an independent valuer will determine whether compensation is payable to the former owner. The government said the compensation framework will be established through regulations expected to be introduced this autumn.
Future options remain open
The government said public ownership provides a platform to stabilize British Steel while assessing its long-term future, including the possibility of attracting private sector investment.
Allan Bell, Interim CEO British Steel, welcomed the decision, describing it as a historic moment for the company and UK manufacturing, while trade unions Community and GMB also expressed support for the move, saying it would help secure jobs and strengthen the long-term future of the UK steel industry.