British Steel Nationalised to Secure UK Supply Chain

British Steel was formally taken into public ownership on July 16, 2026, marking a significant intervention by the UK government to secure the nation's steel supply chain. This move comes 15 months after the government initially stepped in to prevent the closure of the Scunthorpe steelworks, a decision that would have resulted in the loss of 4,000 jobs.

Prime Minister Keir Starmer stated on Thursday that nationalizing the factory, previously owned by China's Jingye Group, was in the national interest. This action was one of the final significant decisions overseen by Starmer's administration, following the Royal Assent of the Steel Industry (Nationalisation) Act on Wednesday. The government will now appoint a valuer to determine the compensation to be paid to the former owners.

The nationalization aims to ensure the continued operation of a critical industrial asset and protect employment within the sector. The Steel Industry (Nationalisation) Act provides the legal framework for this takeover, allowing the state to assume control of companies deemed vital to national security or economic stability. The specific terms of compensation for Jingye are yet to be finalized and will be subject to the valuation process.