Government brings British Steel into public ownership to protect UK steelmaking

Official release

Government concludes it is in the public interest to take ownership of British Steel, protecting the future of steel production in the UK.

The decision will protect thousands of jobs, support industry that relies on UK made steel and helps to safeguard supply chains, major infrastructure projects and national security.

New leadership team appointed to focus on stabilising the business and developing a commercially sustainable, low-carbon future.

The Government has today (16 July) taken British Steel into public ownership to protect the future of steel production in the UK.

The move follows the Steel Industry (Nationalisation) Act receiving Royal Assent and comes after Ministers concluded that bringing the company into public ownership was necessary to protect the UK’s national interest.

Steel plays a vital role in the UK economy, supporting major construction projects, transport networks, energy infrastructure, defence and the delivery of our Modern Industrial Strategy.

Maintaining steel production at British Steel’s Scunthorpe site is considered essential to preserving the UK’s ability to make steel domestically.

After assessing the impact on the country’s economy, critical infrastructure and national security, the Business Secretary concluded that government ownership was the best way to secure the company’s future and protect the UK’s steelmaking capability and supply chains.

This follows wider support for the UK steel sector including the first ever Steel Strategy, published in March and backed by up to £2.5bn of investment, which set an ambition for up to 50% of steel used in the UK to be made in the UK.

This is on top of a new trade measure which limits tariff-free steel imports into the UK by reducing overall quota volumes by 51%, £500m for Tata Steel to support its Port Talbot green steel transformation, and support for steel firms’ energy costs worth hundreds of millions of pounds per year through the Supercharger and British Industrial Competitiveness Scheme.

Despite extensive discussions, it was not possible to reach an agreement with the former owner Jingye that would secure the future of the company while delivering value for taxpayers.

Parliament has now provided the powers needed to act, and government has decided that bringing British Steel into public ownership is the right and necessary course of action.

Now that Royal Assent has been achieved, the public interest test has been met and the business brought into public ownership, the Act requires an independent valuer to be appointed to assess whether any compensation is payable. The compensation scheme will be set up through regulations expected in autumn.

The first priorities for the new leadership team – made up of newly-appointed Non-Executive Directors – will be stabilising operations on site, managing health and safety effectively, maintaining production, and working closely with management, trade unions and staff on proposals to make British Steel a commercially sustainable, low-carbon enterprise.

A strong domestic steel industry is critical to the Government’s plans to reindustrialise Britain, strengthen national resilience and reduce reliance on overseas supply chains for strategically important materials.

Public ownership provides the immediate platform from which the Government can stabilise the company and consider its future direction by exploring what opportunities there may be to deliver a long-term future for the company, including exploring possible options for private sector investment.

Today’s move builds on the Government’s Steel Strategy, launched in March, which sets out a long‑term plan to revitalise the UK steel sector, restore domestic production to sustainable levels and secure steel’s role in critical sectors including national infrastructure, defence and clean energy.

Notes to editors

The Steel Industry (Nationalisation) Act received Royal Assent on 15 July 2026.

British Steel transferred into public ownership with effect immediately on 16 July 2026 through regulations signed by Industry Minister Chris McDonald on 15 July once the Act was in force.

British Steel has been operating under government intervention since April 2025 to ensure continued steel production and prevent the closure of the blast furnaces.

Steel remains a cornerstone of Britain’s economy, supporting around 33,000 direct jobs in 2025 and a further 36,000 jobs across supply chains. But years of global overcapacity, unfair competition and high operating costs have made it harder for UK‑based steel companies to compete and invest.

Direct jobs: ONS JOBS03: Employee jobs by industry Q1 2026 & ONS JOBS04: Self-employment jobs by industry Q1 2026. (SIC 24.1-3)

Indirect jobs calculated using ONS 2023 employment multipliers: Employment multipliers and effects in the UK - Office for National Statistics

UK Department for Business and Trade · Open Government Licence v3.0. © Crown copyright. Text excerpted and formatting simplified; media and third-party quotations excluded. No endorsement implied.

Source: UK Department for Business and Trade ↗ · Updated 16 Jul 2026, 11:15 am IST