British Steel: Call for Nationalisation Amid Ownership Stalemate
A year after the government intervened to prevent the closure of British Steel's Scunthorpe plant, Labour MP Nic Dakin has called for the company to be nationalised by the summer if a deal with its Chinese owner, Jingye, remains elusive. Mr Dakin stated that public ownership would represent the "best outcome" for the business, enabling crucial investment and future planning.
The government took control of the Scunthorpe facility, which employs 2,700 staff, on 12 April 2025. Industry minister Chris McDonald reiterated the government's commitment to securing a deal, highlighting British Steel's "vital importance to the country." However, Mr McDonald did not provide a timetable for resolving the ownership issue, adding that "no decision's been made on whether to nationalise the company."
Steelworkers and local communities continue to face uncertainty. Thomas Smith, a steelworker and Community Union branch secretary, expressed the collective desire for clarity: "We're a year on now. We're not really any further and we all want to know what's next." He advocates for nationalisation, citing the "security" it offers workers and the national significance of the steel industry.
Mr Dakin emphasised that maintaining UK steel production is a matter of national security. He argued that the current arrangement, where the government operates the company while Jingye retains ownership, is unsustainable. The National Audit Office reports that British Steel is costing the government approximately £1.3 million per day, underscoring the urgency for a definitive long-term strategy.
While British Steel has recently secured significant contracts, including a railway project in Turkey and a £500 million deal with Network Rail, analysts remain cautious. Steel analyst Jonathon Carruthers-Green noted that these deals are "definitely a step in the right direction," but sustained momentum, rather than isolated successes, is required to secure the company's future and attract long-term investment.
