British Steel is poised to enter public ownership following the enactment of new legislation granting the government powers to nationalise the company. The Steel Industry (Nationalisation) Act 2026 received royal assent and became law this week, authorizing ministers to transfer shares and assets of steel businesses into state control.
The legislation marks the culmination of parliamentary steps, with the final approval announced by Commons deputy speaker Judith Cummins. Industry minister Chris McDonald indicated that nationalisation would proceed only if a public interest test is satisfied, describing it as the appropriate course of action under such circumstances.
British Steel is currently owned by the Chinese company Jingye. Last year, Jingye announced plans to shut down the blast furnaces at its Scunthorpe plant in North Lincolnshire, a move that prompted significant government intervention. In April, Parliament was recalled on a Saturday to pass special measures aimed at preventing the closure. These measures gave ministers powers to direct how British Steel could use and manage its assets, although they did not involve taking a direct ownership stake at the time.
Prior to the passage of the nationalisation law, the government reportedly attempted to negotiate a commercial sale of the company with Jingye but was unable to reach an agreement. The new legislation empowers ministers to proceed with nationalisation if deemed necessary to safeguard the steel industry and associated jobs, particularly at the Scunthorpe site.
The move reflects concerns over the stability of domestic steel production amid broader economic and strategic considerations. The timing follows months of uncertainty about British Steel’s future, and the legislation now provides the legal framework for full public ownership to secure continued operations and support the sector.