Prime Minister Keir Starmer has announced the government’s plans for the full nationalization of British Steel. The relevant bill is set to be introduced this week.
According to Starmer, the legislation will grant authorities the power to take the company into full state ownership, provided it passes a public interest test. This would mark the first time British Steel has been returned to full government control since 1988.
British Steel, which owns the UK’s last blast furnace steelworks in Scunthorpe — capable of producing steel from scratch — had been owned by Chinese group Jingye since 2020. In April 2025, the company faced closure due to massive losses of approximately £700,000 per day. The government introduced emergency measures at the time, taking operational control of the plant in order to preserve production and thousands of jobs.
“We are doing this to strengthen Britain, protect a strategically vital industry, and secure the future of British steelmaking,” Starmer stated.
Nationalization will allow the government to directly address issues of production modernisation, the transition to green technologies, and national security in steel supply. Several thousand people are employed in Scunthorpe, and the preservation of jobs has been a key argument in favour of state involvement.
Further details of the plan are expected to be set out in the King’s Speech in the coming days. Negotiations with Chinese owner Jingye have so far failed to produce a mutually acceptable private solution.
The decision comes amid serious political challenges for Labour following losses in local elections. Many analysts view the nationalization as an attempt to demonstrate resolve in defending British industry.
The government emphasises that it regards nationalization as one tool among several, but that priority is being given to a long-term strategy for developing the steel sector.