UK Completes British Steel Nationalisation; Jingye Seeks Compensation

The UK government completed the nationalisation of British Steel on Thursday, 16 July 2026, bringing the country's last operating steelworks under public ownership. The Department for Business and Trade said the Steel Act gave ministers powers to protect a foundation industry that supports critical national infrastructure, the economy and defence.

British Steel had been owned by China's Jingye Group until the formal transfer.

The government had already assumed operational control in 2025 after the company announced plans to close the Scunthorpe plant and cut 4,000 jobs. The plant had been losing around £700,000 a day under private ownership, according to earlier company statements. The National Audit Office reported in March 2026 that the site was costing the government about £1.3 million a day to keep running.

China's Ministry of Commerce stated it is strongly dissatisfied with the decision. Officials said the move seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK. Beijing added that it will closely monitor developments and support Chinese enterprises in using legal means to protect their rights.

Jingye is seeking compensation from the government. Business Secretary Peter Kyle told GB News on Thursday that ministers had to take the decision to bring British Steel into public ownership. Richard Tice, deputy leader of Reform UK, said the government had finally listened after years of appeals and that only a nominal one-pound payment was required because of the plant's liabilities.

The incoming prime minister is expected to face questions over the international implications of the decision before taking office on Monday.