UK Government Takes Full Control of British Steel to Safeguard Domestic Production

UK Government Takes Full Control of British Steel to Safeguard Domestic Production

The British government has officially taken ownership of British Steel, completing the nationalisation of the struggling steelmaker in a move aimed at protecting the country’s steel manufacturing capacity and preserving thousands of jobs.

The decision, announced on Thursday, transfers full control of the company from its former Chinese owner, Jingye Group, to the UK government after efforts to secure a private buyer were unsuccessful.

Officials said the move was necessary to maintain Britain’s ability to produce steel domestically, describing the industry as critical to the country’s economic and national interests.

Outgoing Prime Minister Keir Starmer said bringing British Steel into public ownership would help secure the future of steel production, protect skilled workers and preserve an industry considered essential to the nation’s infrastructure and security.

The government first stepped in during April 2025 by assuming operational control of the company’s Scunthorpe steelworks after concerns that the plant could shut down.

The facility, Britain’s last remaining primary steelmaking site, directly employs about 2,700 workers and supports thousands of additional jobs across the supply chain.

British Steel supplies key industries including rail transport, construction and automobile manufacturing.

However, the company has faced mounting financial pressure due to high energy costs in the UK and intense competition from low-priced steel imports.

Business Secretary Peter Kyle said the government is spending more than £1 million each day to keep the plant operating, adding that retaining domestic steel production is vital to reducing reliance on foreign suppliers.

According to the government, approximately £640 million has already been invested to keep the business running while plans are developed to restore it to long-term commercial viability.

The legislation authorising the takeover received final approval on Wednesday, marking the end of British Steel’s period under private ownership, which began after its privatisation in 1988.

Industry body UK Steel welcomed the government’s decision, saying public ownership provides an opportunity to develop a long-term strategy that can return the company to sustainable commercial success.