politics
UK government completes nationalisation of British Steel under Steel Act powers
The government placed the Scunthorpe steelworks under public ownership to secure the last UK plant producing virgin steel. Jingye Group and China both condemned the move and signaled further action.
Jul 17, 2:01 AM·1m read8 sources
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The GuardianAudio version
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The UK government completed the transfer of ownership of British Steel to public control on 16 July 2026 under powers granted by the Steel Act. The Scunthorpe plant is the country's last facility producing virgin steel from raw materials and employs about 2,700 people.
The government assumed operational control in April 2025 after the Chinese owner, Jingye Group, launched a consultation on closure in March 2025.
China's Ministry of Commerce stated on 17 July that it "firmly opposes" the decision and is "strongly dissatisfied." The ministry said the action "seriously infringed upon Jingye's rights and interests" and "severely undermined the confidence of Chinese companies investing in the UK."
Jingye Group stated on 19 July that it will seek full compensation through legal means. " It added that it has initiated negotiation procedures under bilateral investment agreements and reserved rights to international arbitration.
Jingye Group purchased British Steel in 2020. Draft compensation regulations due in autumn 2026 will establish an independent assessor to determine any payment due to the company. British Steel was last under state ownership in 1988.
The National Audit Office reported in March 2026 that keeping the plant running was costing the government about £1.3 million per day.
