British Steel Nationalisation Confirmed: Starmer Announces Government Takeover Legislation

Prime Minister Sir Keir Starmer has announced that British Steel is to be brought into public ownership, with legislation to be introduced this week. This will grant the government powers to assume "full ownership of British Steel," contingent on meeting a public interest test.

This decision follows the government's intervention in April last year, when it seized control of British Steel's Scunthorpe steelworks from its Chinese owners, Jingye. The action was taken to prevent the potential closure of its blast furnaces.

Sir Keir stated that discussions had been held with Jingye, but a "commercial sale has not been possible, and now a public test could be met." He affirmed in a speech that "Public ownership is in the public interest."

The steelmaking industry has largely welcomed the announcement. Gareth Stace, Director-General of UK Steel, highlighted that the move provides "vital certainty" for British Steel's 2,700 employees and its customer base. Stace emphasised the importance of maintaining domestic production capability for British Steel's products, citing both economic growth and national security as justifications.

However, Stace cautioned that nationalisation should not be considered an "end goal." He stressed the need for this process to initiate "a clear and credible long-term plan for British Steel" and a defined investment strategy. This is not the first instance of government intervention; the Insolvency Service managed the company for six months after its 2019 collapse, incurring a cost of £500m to taxpayers.