New legislation will give the UK government the power to bring British Steel into public ownership.
Prime Minister Kier Starmer announced the new legislation in a speech on Monday, where he set out plans to boost sovereign capabilities, protect domestic industry and prioritise British jobs.
Starmer said: “Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.
“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.”
The Government intervened at British Steel in April 2025 to ensure uninterrupted steel production and to avoid sudden closures.
Since then, they have been in discussions with Jingye, who owns British Steel, to find a solution for the business. However, the Government believes it is not possible to reach an agreement with them which would deliver an acceptable value for money for taxpayers.
Business Secretary, Peter Kyle, added: “Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.
“Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation.”
