Industry Minister Chris McDonald (pictured second left) has said this week that the UK government is strongly minded to nationalise British Steel.
In a written statement, he commented: “The Steel Industry (Nationalisation) Bill has completed its passage in the House of Commons and has entered the House of Lords.
“Given the information currently available to us, the government is strongly minded to use the powers in the bill to bring British Steel into public ownership in the future, subject to the public interest being satisfied and taking into account all the relevant facts at that time.”
China’s Jingye Steel said earlier in June it wants Britain to compensate it for the loss incurred through its investment in British Steel, which has been under the British government control since April 2025.
Given the information currently available to us, the government is strongly minded to use the powers in the bill to bring British Steel into public ownership in the future.
Chris McDonald MP, Minister for Industry
Supporters of the proposal say nationalisation would provide stability following years of financial uncertainty and foreign ownership challenges. Trade unions have welcomed the move, describing it as a necessary intervention to preserve vital industrial infrastructure.
However, critics have questioned the potential cost to taxpayers and warned that government control may not address underlying market pressures, including rising energy costs and international competition.
Paul McFadyen, Chairman at metals supplier metals4U, commented: “While nationalisation would certainly give the British steel industry some much-needed security; it would not be a blanket solution to the problems it has been experiencing in recent years. It does however, indicate that the government is taking the survival of British Steel seriously, and is safeguarding it to ensure the continued existence of sovereign steel production in the country.
“The recent EU proposal to halve tariff-free steel import quotas would have a devastating effect on the recovery of the UK steel industry, and while nationalisation would mean that the survival of British Steel is no longer dependent on its profits, it is not necessarily the answer either.
“As it stands, the biggest threat to the industry is still the financial impact of the 50% tariff-free quotas, and the doubling of out-of-quota tariffs. If this policy goes ahead as planned and the UK is not exempted in time, it will be a serious blow to the recovery the sector has experienced in recent years.
Nationalising the industry would not be a quick fix to the existing problems the industry faces. Those still need to be addressed, and a fair deal with the EU still needs to be the biggest priority.
Paul McFadyen, Chairman, metals4U
“The priority for the government remains a successful negotiation with the EU, ending in a resolution that would protect UK steel producers from the new tariffs and to ensure we land on a deal that safeguards the industry and its supply chain in the long term. Reducing energy costs for UK manufacturers also needs to be brought to the top of the agenda, so the continued production of British steel is sustainable.
“If negotiations collapse, much of the recent optimism in the steel sector will disappear, and the industry will once again face a difficult path to ensure its long-term survival. Nationalising the industry would not be a quick fix to the existing problems the industry faces. Those still need to be addressed, and a fair deal with the EU still needs to be the biggest priority, along with continued investment and incentivisation for the wider manufacturing sector to use UK-made steel. However, in the long-term, it could ensure the continued survival of the British steel sector once the immediate and pressing issues are resolved.”
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