British Steel nationalisation secures jobs for short-term

The government has formally brought British Steel into public ownership, securing the future of around 2,700 jobs at its Scunthorpe steelworks while giving ministers greater control over the future of the UK’s primary steel production.

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The move follows the passing of the Steel Industry (Nationalisation) Bill, which creates a legal framework allowing the government to intervene in the steel sector where it is deemed to be in the public interest. While ministers have emphasised that nationalisation is not intended to be permanent, the legislation enables swift action to protect strategically important steel assets and safeguard employment.

The decision provides short-term certainty for employees at Scunthorpe and thousands more in the supply chain after months of uncertainty over the site’s future. The government had taken operational control of the plant in 2025 after concerns that owner Jingye Group was preparing to close the site’s two remaining blast furnaces.

Business secretary Peter Kyle said nationalisation would preserve jobs and maintain the UK’s ability to produce virgin steel, warning that allowing the business to fail would leave Britain entirely dependent on overseas suppliers.

The Scunthorpe site remains the UK’s only producer of virgin steel made directly from iron ore and is a key supplier to sectors including rail and construction. Ministers have said nationalisation will allow blast furnace production to continue while longer-term plans for the industry’s transition to lower-carbon steelmaking are developed.

The government is expected to cover the company’s operating costs in the short term, with the National Audit Office estimating the site currently costs around £1.3 million a day to run. An independent assessor will determine whether Jingye should receive compensation following the transfer into public ownership.

Steelworkers’ union Community welcomed the fresh developments, describing them as critical to protecting jobs and the UK’s industrial capability.

Assistant general secretary Alasdair McDiarmid said: “This new law will enable steel companies to be brought into public ownership, where necessary, which will help to safeguard thousands of jobs and ensure the UK retains the capability to produce the steel our economy and national security depends upon.”

He added: “The Labour government has shown continued support for the steel sector and we look forward to seeing the UK Steel Strategy implemented in full.”

Community’s national secretary for steel, Paul McKenna, said: “The importance of this legislation cannot be overstated. Its swift progress through parliament proves something Community has known for a long time – that the steel industry is a strategic national asset vital to our economy and national security.”

Unite also backed the move but urged ministers to go further. General secretary Sharon Graham said: “Nationalisation needs to be the first step in a journey to transform our steel industry. We need serious investment on the ground across the industry to create jobs and make Britain a leading producer of green steel.”