The British bring steel production back under state control

Prime Minister Keir Starmer said it had not been possible to reach a commercial deal with the Chinese owners of Jingye and that the public interest test could now be met.

The government will, it is said, introduce legislation that would allow it the option of nationalizing British Steel, provided that the public interest test is met.

This would provide a pathway for the Government to protect Britain’s steelmaking capacity and prevent an abrupt shutdown of production at Scunthorpe, while it considers options for the future of British Steel in line with the ambitions of the Government’s Steel Strategy.

The move strengthens economic resilience and supports the Government’s long-term ambition for a resilient and modern UK steel sector. British Steel could thus end up back in state hands for the first time since it was privatized in 1988, thanks to powers to be included in new legislation unveiled in the King’s Speech on Wednesday.

The new powers would be subject to public interest tests and, if used to nationalize British Steel, would contribute to national security and ensure stability for workers in Scunthorpe, as well as the company’s suppliers and customers.

Prime Minister Keir Starmer today announced a plan to strengthen the country’s sovereign capacity, protect British industry and prioritize British workers and industrial communities.

The government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and prevent the sudden closure of blast furnaces, which would disrupt supply chains and put thousands of jobs at risk.

Since then, the Government has been holding discussions with the owner of British Steel in order to find a pragmatic and realistic solution for the company’s operations under acceptable conditions. It was not possible to reach an agreement on a commercial sale with the current owner, and the Government believes that an agreement cannot be reached that would represent acceptable value for taxpayers’ money.

The government believes that the introduction of legislation that paves the way for public ownership is an appropriate next step, noting that any decision on the use of these powers would depend on meeting the public interest test provided for in the law.

The public interest test includes factors such as national security, preservation of key national infrastructure and support for the economy.

Today’s announcement follows the launch of the Government’s Steel Strategy in March, which set out a long-term plan to revitalize the UK’s steel sector and strengthen economic resilience through a target for up to 50 per cent of UK steel demand to be met by domestic production.

Prime Minister Keir Starmer said:

“Steel is strategically important to our economy and national resilience. That’s why we acted last year to prevent an abrupt shutdown at Scunthorpe, protect workers and the community that depends on the facility, and now we’re bringing in legislation that gives us the ability to protect Britain’s steelmaking capacity. This legislation would allow us to respond if necessary as we continue to rebuild our steel sector.”

Economy Minister Peter Kyle said:

“Strong domestic steel production is vital to our economy and this legislation would enable us to ensure stability for British Steel workers, suppliers and customers and avoid damaging disruptions to key supply chains as we consider options for the future of this facility. Revitalizing our steel sector is one of this Government’s top priorities and passing this legislation would enable us to explore potential future options for British Steel. The Government recognizes that the long-term future of the British steel sector depends on both public and private investment in modernization.”

Following the Government’s intervention in April 2025, British Steel continued operations at the Scunthorpe facility, preserving production capacity and jobs in the local economy and supply chain, providing security and stability for the town and its workers.

The new law will be officially presented to Parliament this week. Any decision to return British Steel to public ownership could only be made after the legislation receives royal assent and if the public interest test defined by the law is met.

(Vijesti.ba)