politics
UK Government to Nationalise British Steel’s Scunthorpe Works After Talks With Chinese Owner Fail
Prime Minister Sir Keir Starmer announced legislation this week to nationalise British Steel, subject to a public interest test. The move follows the government's takeover of the Scunthorpe steelworks from Chinese owner Jingye in April 2025 to prevent blast furnace closures. Industry leaders welcomed the certainty for workers while calling for a long-term investment plan.
May 11, 5:57 AM·1m read1 source
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British Steel is set to be brought into public ownership after the UK government seized control of its Scunthorpe steelworks from Chinese owners Jingye in April 2025. Sir Keir Starmer announced that legislation would be brought forward this week to give the government powers to take full ownership of British Steel, subject to a public interest test.
The steelworks has been under government control for almost a year.
The government seized the Scunthorpe steelworks in order to halt the potential closure of its blast furnaces. Sir Keir Starmer said the government had held talks with Jingye but that a commercial sale has not been possible. He added that a public test could be met.
The prime minister's announcement marks the latest chapter for the company, which saw the Insolvency Service run British Steel for six months after it collapsed in 2019. That earlier insolvency cost £500m to taxpayers.
The steelmaking industry welcomed the announcement. Gareth Stace, director-general of industry body UK Steel, said the announcement provided vital certainty for the 2,700 workforce and the company's customers. "Maintaining domestic production capability for British Steel's products is essential not only for economic growth but also for our national security and resilience," Gareth Stace said.
He added that nationalisation was not an end goal and the process must be the beginning of a clear and credible long-term plan for British Steel and an investment strategy. The developments come nearly a year after the initial government intervention at Scunthorpe, which prevented the immediate loss of the site's blast furnaces.
