British Steel nationalisation expected in King's Speech this week
Full nationalisation of british steel is expected to be announced in the king’s speech this week, ending months of government involvement in the plant’s daily running. The move would put the Scunthorpe site on a different footing after last April’s intervention over fears that its Chinese owner, Jingye, planned to close it.
The company employs 3,500 people at Scunthorpe and runs the UK’s last two remaining blast furnaces. Jingye still holds the economic control of British Steel after buying it out of insolvency in early 2020, even though the government took over day-to-day operations a year before the expected announcement.
Scunthorpe and Jingye
British Steel came under government control last April, when ministers acted amid fears that Jingye was preparing to shut down the site. Jingye later sought to shut down the blast furnaces in April 2025, while negotiations between the company and the government fell through.
The ownership path has been unsettled for years. British Steel was bought by Greybull Capital in 2016, collapsed into insolvency three years later, and was then bought by Jingye in March 2020.
Costs and buyers
The cost of keeping British Steel running had reached £377m by the end of January this year, and National Audit Office estimates put that figure above £1.5bn by 2028 if costs continue at the current rate. That financial burden sits alongside the plant’s wider role in supply chains: Network Rail sources about 95% of its track from the site.
Interest in the business has continued. Michael Flacks declared himself “very” interested in buying British Steel in February, and Sev.en Global Investments suggested earlier this month that the government should find a single buyer for British Steel and Speciality Steel UK.
King's Speech on Wednesday
An announcement confirming the plans is expected in the king’s speech on Wednesday, according to the Sunday Times. A government spokesperson said: “We’ve been clear that safeguarding UK steel making is our priority. We’re continuing discussions with Jingye to agree a pragmatic and realistic solution to secure the long-term future of the Scunthorpe site. Discussions are ongoing and no conclusion or decision has yet been reached.”
The immediate issue for workers in Scunthorpe is whether that plan leads to a transfer of ownership, not just state management. For customers and suppliers tied to the site, the next formal signal is expected in the king’s speech.
