Government brings British Steel under public ownership
BBC News 2026-07-16 05:22:15
Context: The UK government has brought British Steel under public ownership in a move to "protect UK steelmaking" and secure the future of the industry, which employs roughly 2,700 people in Scunthorpe, north Lincolnshire. The decision was made after years of uncertainty surrounding the steelworks' future, with the government initially seeking private investors to take control of the steel manufacturer. The move comes after Jingye Group, the Chinese firm that owned British Steel, flagged the potential closure of the last two remaining blast furnaces at the Scunthorpe plant.
Key Facts
- British Steel has been brought under public ownership by the UK government, with Prime Minister Sir Keir Starmer stating that the decision "secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability".
- The Scunthorpe steelworks, which employs roughly 2,700 people, was costing the government about £1.3m a day, according to a report by the National Audit Office in March.
- Jingye Group, the Chinese firm that previously owned British Steel, had begun the process of seeking compensation for nationalisation, having previously stated that the business was losing £700,000 a day.
- The UK government had previously taken control of British Steel operations in Scunthorpe last year, although it had remained under the ownership of Jingye Group.
- The government passed legislation on Wednesday allowing it to bring the steel industry into public ownership under circumstances where it met a public interest test, with the Department for Business and Trade stating that it was "strongly minded" to use the new powers in the case of British Steel.