Tag: British Steel

New legislation gives Government power to bring British Steel into public ownership

New legislation to be announced in the King’s Speech on Wednesday will give government the option to bring British Steel into public ownership

  • Government to introduce legislation which would give it the option to nationalise British Steel, subject to public interest test being met.
  • Primary legislation would give Government a route to safeguard UK steelmaking capacity and avoid sudden halt of production at Scunthorpe, while it considers options for British Steel to help deliver on government’s Steel Strategy ambitions.
  • Move strengthens economic resilience and backs Government’s long‑term ambition for a resilient, modern UK steel sector.

British Steel could be back in Government hands for the first time since being sold off in 1988, thanks to powers that will be included in new legislation to be set out in the Kings Speech tomorrow.

The new powers would be subject to public interest tests, and if used to nationalise British Steel, they would boost national security while giving stability to workers at Scunthorpe, and British Steel’s suppliers and customers.

The Prime Minister announced the new legislation in a speech yesterday (Monday 11 May) where he set out his plan to boost our sovereign capabilities, protect British industry, and prioritise British jobs and industrial communities.

The Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of the blast furnaces, which would have disrupted supply chains and risked thousands of jobs. 

Since then, the Government has been in discussions with British Steel’s owner to find a pragmatic and realistic solution for the business on acceptable terms.

It has not been possible to agree a commercial sale with the current owner, and government does not believe an agreement could be reached which would deliver acceptable value for money for taxpayers.

The Government believes introducing legislation to provide a route to public ownership is the appropriate next step, while recognising that any decision to use the powers in the Bill would be subject to the Bill’s public interest test being met. 

The public interest test considers factors including national security, maintaining critical national infrastructure and supporting the economy. 

The announcement today follows the launch of the Government’s landmark Steel Strategy in March, which set out its long‑term plan to revitalise the UK steel sector and bolster economic resilience by meeting up to 50 percent of UK steel demand domestically.

Prime Minister Keir Starmer said: “Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.

“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.”

Business Secretary Peter Kyle said: “Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.

“Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation.”

Following the Government’s intervention in April 2025, British Steel has continued operating at the Scunthorpe site, protecting steelmaking capacity and supporting jobs across the local economy and supply chain, providing reassurance and stability for the town and its workforce.

The new Bill will be formally introduced to Parliament this week. Any decision to bring British Steel into public ownership would only be taken after the Bill receives Royal Assent, and if the public interest test set out in the legislation is met.

UK Government secures raw materials to save British Steel

NATIONALISATION BY ANY OTHER NAME?

The Business Secretary Jonathan Reynolds is pushing ahead with efforts to safeguard British Steel. Today [Tuesday 15 April] he will travel up to Immingham as the raw materials that have been waiting in the dock are unloaded and transported to the site, following the government settling payment for them.

The materials – which have arrived from the US – are enough to keep the blast furnaces running for the coming weeks, with officials continuing to work at pace to get a steady pipeline of materials to keep the fire burning.

A separate ship which contains yet more coking coal is on the way to the UK from Australia. This cargo was the subject of a legal dispute between British Steel and Jingye over the weekend that has now been resolved. The materials have been paid for using existing DBT budgets.

New legislation passed last weekend, in an unprecedented move, gives Government the power to direct the company’s board and workforce, ensure they get paid, and order the raw materials to keep the blast furnaces running. It also permits the Government to do these things itself if needed. 

The government acted to protect 37,000 jobs in supply chains and ensure we can build the infrastructure needed to deliver growth which is fundamental to the Plan for Change.

On Monday, Business and Trade Secretary Jonathan Reynolds confirmed the appointment of Allan Bell as interim Chief Executive Officer, and Lisa Coulson as interim Chief Commercial Officer, both with immediate effect – ensuring the right expertise is in place to keep the site running smoothly.

After intensive work over the weekend, the government has secured coke and iron ore pellets for the blast furnaces and is confident there will be enough materials to keep the furnaces burning.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the interest of working people and UK industry. Thanks to the work of those at British Steel, and in my department, we have moved decisively to secure the raw materials we need to help save British Steel.

“Our industries depend on UK steel and – thanks to our Plan for Change – demand is set to shoot up: helping build the 1.5 million homes, railways, schools and hospitals we need to usher in a decade of national renewal.”

Government acts to save Scunthorpe steel production

  • Parliament recalled to introduce emergency powers that will allow the Government to protect the Scunthorpe site
  • Unique action to gives the best chance of safeguarding steelmaking, protecting jobs, national security and supply chains.
  • This strategic decision aims to secure domestic steel production for nationally important projects like airports, rail and housing and deliver growth at part of the Plan for Change.

Steelmaking is set to continue in Scunthorpe following urgent action by the UK Government.   

The Prime Minister requested the recall of Parliament to vote on emergency legislation to prevent the blast furnaces being shut down.

The move will maximise the chances of securing domestic steel production – a crucial national capability which was at risk of collapse under the site’s current ownership. This is a very specific intervention taken in exceptional circumstances.

British Steel’s owners Jingye confirmed their intention to close the blast furnaces at Scunthorpe immediately, despite months of negotiations in good faith and a generous offer of co-investment from the UK government of £500 million. 

If the blast furnaces were to be immediately switched off, this would put at severe risk the future of steelmaking at this unique site. 

The legislation will give the Government the power to direct the company’s board and workforce, ensure they get paid, and order the raw materials to keep the blast furnace running.

In the meantime, the Government has instructed the company’s UK management to continue the running of the plant to ensure the furnaces keep burning. This legislation means that anyone employed at the plant who takes steps to keep it running, against the orders of the Chinese ownership, can be reinstated if sacked for doing so.

Steel is vital for both the UK’s national security and manufacturing, and crucial for the Government’s mission to build 1.5 million new homes in the UK as part of its Plan for Change, with construction projects requiring millions of tonnes of steel. 

Given global economic instability, it is crucial that manufacturing is protected at home. That’s why the Government took action earlier this week to support the car industry by easing the path to the EV mandate and deliver a £30 million package to support the reopening of Doncaster Sheffield Airport, which is expected to support 5,000 jobs and boost the economy by £5 billion.  

Business Secretary Jonathan Reynolds said: “We will always do what is necessary to keep Britain secure at home and strong abroad. We are doing what previous governments have failed to, acting in the national interest to help secure UK steelmaking for the future.

“We negotiated with British Steel’s owners in good faith ever since coming to office. We made a generous offer of support to the company and I am deeply disappointed that we have been forced to take these measures, but Jingye have not been forthright throughout this process, and left us no choice but to act. 

“We’re in a new and changing world where it’s never been more important to support our security and build our resilience, so that we can have strength abroad and renewal at home, and that’s what this government has done.” 

A Bill was voted on by MPs on Saturday 12 April to ensure continuity of production at the Scunthorpe site – avoiding the danger and cost of allowing it to stop.  

Funding for the site will come from the Government’s £2.5bn steel fund, to help rebuild the industry over the next five years.

British Steel crisis: Starmer recalls parliament

WESTMINSTER PARLIAMENT SITS TODAY

PRIME Minister Keir Starmer said yesterday: “As Prime Minister, I will always act in the national interest to protect British jobs and British workers.

This afternoon, the future of British steel hangs in the balance. 

Jobs. Investment. Growth. Our economic and national security…are all on the line.

I’ve been to Scunthorpe. I’ve met the steel workers. I know how important steel is, not just to the region, but to the whole country.

It’s part of our national story. Part of the pride and heritage of this nation. And I’ll tell you this – it is essential for our future.

Our Plan for Change means we need more steel not less. So we will act with urgency.

Now, we should be clear – This situation – and our response – is unique.

While it is true that we are facing a new era of global instability our concerns about this plant and negotiations to protect it have been running for years.

This moment could have happened at any time. But it has happened now.

And I will not stand by. There is no time to waste.

So we are recalling Parliament tomorrow for a Saturday sitting.

We will pass emergency legislation in one day to give the Business Secretary the powers to do everything possible to stop the closure of these blast furnaces.

And as I have said, we will keep all options on the table.

Our future is in our hands.

This government will not sit back and just hope. We will act to secure Britain’s future.

With British steel: made in Britain, in the national interest.