British Steel taken back into public ownership by UK government to ‘protect vital supply’

British Steel taken back into public ownership by UK government to ‘protect vital supply’ British Steel was previously owned by the Chinese company Jingye - Bookmark - CommentsGo to comments British Steel has been taken into public ownership, the government has confirmed, in a move designed to protect the future of steel production across the UK. Keir Starmer said the move was necessary to “safeguard a vital national capability”, with business secretary Peter Kyle adding that despite the expense to produce steel domestically, the alternative of relying on imports could prove far more costly. The company was seized control of by the government to protect 2,700 jobs which may have been lost had the plant been shut down by its Chinese owners, along with others in the supply chain concerning home-forged steel. However, some have criticised the move, with Andrew Griffith, shadow business secretary, saying “a blank cheque from the taxpayer isn’t the answer” and that the steel industry couldn’t be fixed “without ditching Labour’s ruinously high energy costs.” The Department for Business and Trade stated the decision was essential to maintain steel manufacturing at British Steel’s Scunthorpe site in Lincolnshire, safeguarding both the company’s future and crucial UK supply chains. This follows the Steel Industry (Nationalisation) Act 2026 receiving royal assent and becoming law. Commons Deputy Speaker Judith Cummins confirmed the development to MPs on Wednesday. A new leadership team has been appointed to focus on stabilising the business and turning it into a “commercially sustainable, low-carbon enterprise”, the Government said. Prime Minister Sir Keir Starmer said: “British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength. “Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.” He continued: “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.” The new law allows ministers to transfer steel businesses’ shares or property into public ownership. Business Secretary Peter Kyle said: “British Steel is one of the nation’s biggest steel producers, and I’ve made the decision to nationalise the business to secure steelmaking capability and maintain production in the national interest. “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.” British Steel was previously owned by the Chinese company Jingye. The company had planned to close its Scunthorpe blast furnaces in North Lincolnshire. But Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open. Ministers gained new powers to tell the firm how it can use and manage its assets. They did not take a stake in the company at the time. Jingye are known to be pursuing compensation for the nationalisation of its asset, with the Telegraph reporting it was seeking up to £1bn. Mr Kyle has said an independent assessor will determine what value, if any, the compensation must be. British Steel interim chief executive Allan Bell said: “This is a momentous day for British Steel, and everyone connected with our business – our dedicated employees, our valued customers and suppliers, and the tens of thousands of people in our supply chains and local communities. “Much more than that, it is an historic day for Britain and UK manufacturing – one which safeguards our future and strengthens national security and infrastructure.” Additional reporting by PA Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments