The government has taken British Steel into public ownership after concluding that nationalisation was necessary to protect UK steel production.
The move follows the Steel Industry (Nationalisation) Act receiving Royal Assent. Ministers said the decision was made in the public interest after assessing the effect on the economy, critical infrastructure and national security.
The government said maintaining production at British Steel’s Scunthorpe site is essential to preserving the UK’s ability to make steel domestically. It said the decision would protect thousands of jobs and support industries that rely on UK-made steel.
A new leadership team has been appointed to focus on stabilising the business and developing what ministers described as a commercially sustainable, low-carbon future.
The announcement follows government intervention at British Steel in April 2025 to keep blast furnaces running and prevent a disorderly closure. Ministers and officials had since worked on options for the company’s future.
The government said the decision sits alongside wider support for steel, including the Steel Strategy published in March and backed by up to £2.5 billion of investment. Other measures cited include a trade measure reducing overall tariff-free steel import quota volumes by 51%, £500 million for Tata Steel’s Port Talbot green steel transformation, and support for steel firms’ energy costs through existing schemes.