The move follows new legislation that allows the government to take control of steelmakers in the public interest. Officials said the decision is intended to protect UK steel production, preserve thousands of jobs, and secure the long-term future of the Scunthorpe steelworks.
British Steel Enters Public Ownership
British Steel has officially been brought into public ownership after the UK government completed its nationalization of the company. The move was made to protect the country's steelmaking industry and safeguard thousands of jobs.
Prime Minister Sir Keir Starmer said the decision secures the future of steel production in the UK. It also protects skilled employment and preserves a strategically important national industry. The move follows months of uncertainty surrounding the Scunthorpe steelworks, which employs around 2,700 people and supports numerous businesses in north Lincolnshire.
The government first took operational control of the Scunthorpe site last year, although ownership remained with China's Jingye Group. Jingye previously warned that the business was losing approximately £700,000 per day and has now started looking for compensation following the nationalisation. However, the UK government has indicated that it could limit or refuse any compensation payments.
Part of a press release from British Steel
Business Secretary Peter Kyle said British Steel now belongs to the British people and that the government's priority is to stabilize the company, support the communities that depend on it, and build a more competitive and environmentally sustainable steel industry for the future.
The nationalization follows new legislation that was passed by Parliament that gives the government powers to take steel companies into public ownership when it is considered to be in the public interest. Officials said the Steel Act is designed to protect an industry that is essential for the UK's economy, critical infrastructure, and national defence.
The government first explored private investment options but ultimately concluded that full public ownership was the best way to secure the long-term future of British Steel. Earlier this year, the National Audit Office reported that maintaining operations at the Scunthorpe steelworks was costing the government around £1.3 million per day.
