UK government nationalises British Steel
British Steel has been nationalised after the Steel Industry (Nationalisation) Act received Royal Assent and was enacted into UK law, Kallanish reports.
The government says that by bringing the company into public ownership, it is protecting the future of steel production in the UK.
The legislation met the public interest test after ministers concluded that bringing the company into public ownership was necessary to protect the UK’s national interest.
The Act requires an independent valuer to be appointed to assess whether any compensation is payable. The compensation scheme will be set up through regulations expected in autumn. In recent days, British Steel’s former owner, Chinese steelmaker Jingye, renewed its demand for compensation from the UK government.
The government took control of the steelworks in April 2025 amid the risk that the blast furnaces could suddenly close.
In a published government statement, UK Prime Minister Keir Starmer says: "British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength. Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability."
Priorities for the new leadership team will be stabilising operations on site, managing health and safety effectively, maintaining production, and working closely with management, trade unions and staff on proposals to make British Steel a commercially sustainable, low-carbon enterprise.
The government continues to explore possible options for private sector investment as part of the long-term future for the company.
Workers unions including Community and GMB have both welcomed the move and thanked the government for safeguarding thousands of jobs.
Industry association UK Steel has also issued a statement saying that "public ownership is the right move" given the steelmaker’s strategic importance.
From: Kallanish
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