UK Government Plans Full Nationalisation of British Steel

The Government of the United Kingdom is expected to announce the full nationalisation of British Steel during the upcoming King's Speech on Wednesday. This move follows a period of partial state control that began in April 2025, when emergency legislation allowed the government to seize day-to-day operational control to prevent the closure of the final two blast furnaces at the Scunthorpe site.

While the state managed operations, economic ownership remained with the Chinese shareholder Jingye. The relationship deteriorated into a physical standoff at the plant and failed compensation negotiations, with Jingye reportedly demanding over £1 billion. Business Secretary Jonathan Reynolds accused the company of refusing to purchase sufficient raw materials to keep the furnaces running and attempting to cancel existing orders.

The government intends to secure the long-term future of the Scunthorpe site and transition to lower-carbon electric arc furnaces. However, the National Audit Office estimates that maintaining the loss-making business could cost taxpayers over £1.5 billion by 2028. Despite the move toward full state ownership, government spokespeople indicate that discussions with Jingye remain ongoing to reach a pragmatic solution.