The UK government announced plans to introduce new legislation that could allow British Steel to return to public ownership for the first time since its privatization in 1988.
The proposed legislation, expected to be introduced to Parliament this week, would provide the government with powers to nationalize British Steel subject to a public interest test, including considerations related to national security, critical infrastructure, and economic stability.
The announcement follows the UK government’s intervention at British Steel in April 2025 under the Steel Industry (Special Measures) Act to prevent the shutdown of blast furnace operations at the company’s Scunthorpe plant.
According to the government, discussions have been ongoing with British Steel’s owner, China-based Jingye Group, regarding a potential commercial solution for the business. However, authorities stated that it had not been possible to reach an agreement considered acceptable in terms of value for taxpayers.
The government said the proposed legislation would provide an option to maintain domestic steelmaking capacity, support supply chains, and protect jobs linked to the Scunthorpe operations.
The move also follows the launch of the UK Steel Strategy in March, under which the government aims to strengthen domestic steel production and meet up to 50pct of the country’s steel demand locally.
British Steel has continued operating at the Scunthorpe site following the government’s intervention earlier this year. Any decision to bring the company into public ownership would be subject to parliamentary approval and fulfillment of the public interest conditions outlined in the proposed legislation.
British Steel is one of Europe’s major steel producers, manufacturing around 3 mln tons of steel annually. The company supplies a wide range of products, including rail, sections, wire rod and special profiles, to global construction, infrastructure and engineering markets.