The UK Government has officially taken British Steel into public ownership after the Steel Industry (Nationalisation) Act received Royal Assent on 15 July 2026. The move, which took effect on 16 July, is intended to protect domestic steel production and preserve an industry regarded as vital to the UK’s economy and national security.
Ministers concluded that public ownership was necessary to ensure the continuation of steelmaking at the company’s Scunthorpe works, one of the few remaining facilities in the UK capable of producing virgin steel.
The Scunthorpe plant is also one of Europe’s leading rail manufacturing sites, supplying railway rails for infrastructure projects across the UK as well as international markets.
Steel is considered a strategic industry in Britain, underpinning major construction schemes, transport infrastructure, energy, defence and the Government’s wider industrial strategy.
According to the Government, assessments of the economic, infrastructure and national security implications showed that public ownership was the most effective way to safeguard the UK’s steelmaking capability and critical supply chains.
Government backs British Steel with long-term investment
The nationalisation complements wider measures to support the UK steel sector. In March, the Government unveiled its first-ever Steel Strategy, backed by up to £2.5 billion of investment, with the ambition that up to 50% of the steel used in the UK should be produced domestically.
In addition, ministers have introduced new trade measures to curb tariff-free steel imports, committed £500 million to Tata Steel’s green steel transformation at Port Talbot and continue to support steelmakers through schemes designed to offset high energy costs.
The Government first intervened in British Steel in April 2025 to prevent the closure of the blast furnaces and protect thousands of jobs. After negotiations with the former owner, China’s Jingye Group, failed to secure a long-term solution, ministers decided that public ownership represented the only viable option.
The Government has also confirmed that it will continue exploring opportunities for future private investment to support the company’s long-term development.
British Steel is one of Europe’s leading rail manufacturers, supplying rails for conventional railways, high-speed lines, metro systems and other rail infrastructure projects in the UK and overseas.
By maintaining the company’s production capability, the Government is also securing a strategic domestic supplier for the rail sector at a time when investment in railway infrastructure and network expansion continues to grow.
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