UK Takes British Steel Into Public Ownership to Prevent Closure

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

Background to the takeover British Steel had been owned by China's Jingye Group until the formal transfer on Thursday. The government had already assumed operational control last year 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 that the site was costing the government about £1.3 million a day to keep running.

Chinese government response China's government said it is strongly dissatisfied with the decision. Officials stated that the move seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK.

The statement added that Beijing will closely monitor developments and will support Chinese enterprises in using legal means to protect their rights. Jingye is seeking compensation from the government.

“Disregarding Jingye's significant contribution to the UK economy and society, the British side forcibly took control of the company in the name of national security." — Chinese government statement, July 2026 Business Secretary Peter Kyle told GB News on Thursday that ministers had to take the big, bold decision to step in and take the firm 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.”