British Steel has come under public ownership after the government moved to protect UK steelmaking. The change follows Parliament's passage of the Steel Act on Wednesday and brings the Scunthorpe operations under state control.
Sir Keir Starmer said the decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability. He said: "Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability," and added that British Steel is "part of the fabric of our nation and a cornerstone of Britain's industrial strength."
Scunthorpe jobs and output
The steelworks employs roughly 2,700 people in Scunthorpe and supports many other industries in north Lincolnshire. Peter Kyle said British Steel now belongs to the British people, and said the focus is on stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead.
The company had already been under government control operationally before the ownership change. The UK government took control of British Steel operations in Scunthorpe last year, and then seized control of the plant in April 2025 after Jingye flagged the potential closure of the last two remaining blast furnaces. If those furnaces had been starved of fuel and gone out, the UK would no longer have had the capability to produce virgin steel.
Jingye compensation claim
British Steel remained under the ownership of Jingye Group before the public ownership move. Jingye said it has begun the process of seeking compensation for nationalisation, while the UK government said it could limit or refuse compensation.
The Steel Act gives the government powers to nationalise steel companies where it is necessary in the public interest, and the Department for Business and Trade said those powers protect a foundation industry that supports critical national infrastructure, the economy and defence. In March, the National Audit Office said the Scunthorpe steelworks was costing the government about £1.3m a day, while Jingye previously said the business was losing £700,000 a day.
The next issue is whether Jingye Group will receive compensation and how much it will be, as the government moves from control of the site to stabilising the business itself.
