British Steel Nationalised to Secure Future of UK Steel Production
The UK government has nationalised British Steel to protect jobs and ensure the continuation of the country's only plant producing virgin steel, with the transfer completed on 16 J
By BBC News
British Steel has been nationalised to safeguard jobs and secure the future of the UK’s only remaining plant producing virgin steel, following the Steel Industry (Nationalisation) Act, which received Royal Assent on 15 July 2026. The transfer to public ownership was completed on 16 July 2026, with regulations signed by Industry Minister Chris McDonald.
Prime Minister Keir Starmer stated that the nationalisation of the loss-making company was crucial to protect jobs, maintain supply chains, and ensure the viability of domestic steel production. The government described the action as necessary to protect a vital national capability and the UK’s national interest.
The Scunthorpe plant, which employs approximately 2,700 people, is the last facility in the UK producing virgin steel, essential for major construction projects. The government intervened in April 2025 to keep the plant operational after its previous owner, Jingye Group, indicated it would withdraw support, risking immediate closure and significant job losses.
The nationalisation follows failed attempts to secure a commercial sale of British Steel, prompting the government to take action in May 2026. Jingye had reported losses of around £700,000 daily at the Scunthorpe facility, leading to concerns over its financial viability.
The UK government has been allocating approximately £1 million per day to sustain the plant since its intervention in 2025. An independent valuer will assess whether any compensation is owed to Jingye following the nationalisation.
China's commerce ministry has expressed strong dissatisfaction with the UK government's decision, highlighting international tensions surrounding the nationalisation.