UK Government Takes British Steel Into Public Ownership

The UK government took British Steel into public ownership on 16 July 2026 under the Steel Act. The step followed Parliament's passage of the Steel Industry (Nationalisation) Bill on 15 July and receipt of royal assent. British Steel operates blast furnaces at Scunthorpe in north Lincolnshire and employs roughly 2,700 people at the site.

The company employs around 4,000 people across its Scunthorpe and Teesside locations. The government had taken operational control of the Scunthorpe plant in April 2025 after Jingye Group, the Chinese owner since 2020, indicated plans to close the furnaces.

Prime Minister Sir Keir Starmer said the decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.

He added that British Steel is part of the fabric of the nation and a cornerstone of Britain's industrial strength. Business Secretary Peter Kyle said the government will cover running costs for the immediate future. An independent assessor will determine any compensation for Jingye Group based on company value.

The government has stated it could limit or refuse compensation. Jingye Group has begun the process of seeking compensation. The company previously stated the business was losing £700,000 a day. A National Audit Office report in March 2026 said the Scunthorpe steelworks was costing the government about £1.3 million a day.

The government views continued domestic virgin steel production as critical to economic security. Without the Scunthorpe blast furnaces, the UK would lose the ability to produce virgin steel and become the only G7 member without that capability.