Prime Minister Sir Keir Starmer has announced the government’s intention to take British Steel into public ownership, as a decisive step to secure the future of a strategically vital part of the steel supply chain.
The Prime Minister has announced that, as a commercial sale has not been possible at this stage, the ‘public interest’ test for nationalisation has now been met. The decision brings much-needed certainty for British Steel’s skilled workforce and customers, while safeguarding a critical foundation of the UK’s industrial base at a time of increasing global instability and competitive pressures.
Steel remains essential to the UK’s national security, infrastructure delivery and economic resilience and ensuring the continuity of domestic production is vital to supporting key sectors including construction, energy, rail and manufacturing.
Speaking to media in the wake of Labour’s sweeping local election losses last week, the Prime Minister said legislation would be brought forward this week to take “full national ownership” of the company for the first time since 1988.
This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment. Steel is a foundation industry and a recognised strategic national asset.
Gareth Stace, Director-General, UK Steel
He said: “In Scunthorpe, we’ve been negotiating with the current owner, and a commercial sale has not been possible, and now a public interest test could be met.
“So, I can announce that legislation will be brought forward this week to give the government powers, subject to that public interest test, to take full national ownership of British Steel.”
Business Secretary Peter Kyle said: “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.”
Gareth Stace, Director-General of UK Steel, added: “We strongly welcome the Prime Minister’s announcement to legislate for the nationalisation of British Steel. This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment. Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience.
“Nationalisation is not an end goal. This must now be the beginning of a clear and credible long-term plan for British Steel. We need to see a detailed investment strategy that supports a managed transition to low-carbon steelmaking, and broader action to tackle the sky-high energy prices in the UK, which are undermining the competitiveness of the steel industry.
“With the right backing and a supportive policy environment, the UK steel sector can be competitive, support thousands of high-quality jobs, and play a central role in delivering the UK’s industrial and decarbonisation ambitions.”
UK Steel will continue to work closely with government and industry partners to ensure that this intervention leads to a sustainable, competitive and low-carbon future for UK steelmaking.
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