Why has British Steel been nationalised?
The UK's only remaining plant making virgin steel has been taken into public ownership after years of uncertainty over its future.
By BBC News
British Steel has been taken into public ownership to protect jobs and safeguard the UK’s only remaining plant making virgin steel, with the transfer officially completed on 16 July 2026. The move follows the Steel Industry (Nationalisation) Act receiving Royal Assent on 15 July 2026, allowing Industry Minister Chris McDonald to sign regulations that brought the company under government control immediately the next day.
Prime Minister Keir Starmer said nationalising the loss-making company was essential to safeguard jobs, protect supply chains and secure the future of domestic steel production. The government stated the action protects “a vital national capability” and is necessary to protect the UK’s national interest.
The plant is located at Scunthorpe, where steel manufacturing will continue under public ownership to sustain UK supply chains. Ownership has officially transferred to the UK government, which will appoint an independent valuer to assess whether any compensation is payable to the former owner, Jingye.
China has rebuked the UK over the nationalisation, describing itself as “strongly dissatisfied” with the decision taken to protect national interests.