UK Government Takes British Steel into Public Ownership

The UK government has taken control of British Steel, bringing the company under public ownership to safeguard the future of steelmaking in Britain. The decision aims to protect thousands of skilled jobs and a vital national capability.

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Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.

Prime Minister Sir Keir Starmer stated that the move secures the future of steelmaking in the UK, protects skilled jobs, and safeguards a vital national capability. The steelworks, located in Scunthorpe, employs approximately 2,700 people and supports numerous other industries in the region. The future of the plant had been uncertain for several years.

British Steel had been under the ownership of Chinese firm Jingye Group since last year. Jingye has indicated it is seeking compensation for the nationalization, having previously reported daily losses of £700,000. However, the UK government has suggested it may limit or refuse such compensation.

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British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength.

Business Secretary Peter Kyle emphasized that British Steel now belongs to the British people. The government's focus is on stabilizing the business, supporting the communities that depend on it, and developing a sustainable, competitive, and decarbonized steel sector for the future. Parliament recently passed legislation enabling the government to nationalize steel companies if deemed necessary in the public interest.

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This government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future.

A report from the National Audit Office in March indicated that the Scunthorpe steelworks was costing the government about £1.3 million per day. The government had previously sought private investors but ultimately opted for full nationalization.

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British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead.