The government has taken drastic action to secure the future of British steelmaking, formally bringing the embattled industry giant under state ownership. This significant intervention follows the introduction of new legislation granting ministers the power to nationalise steel companies deemed vital to the national interest, after a public interest test was passed by the company.
Prime Minister Rishi Sunak has stated that this move will "secure the future of British steelmaking", highlighting the government's long-term commitment to the industry. The Department for Business and Trade has confirmed the appointment of a revamped leadership team at Scunthorpe-based British Steel, tasked with stabilising operations and developing a commercially sustainable future.
Business Secretary Peter Kyle underlined the importance of this decision, explaining: "British Steel is one of the nation’s biggest steel producers, and I’ve made the decision to nationalise the business to secure steelmaking capability and maintain production in the national interest." This move comes after a tumultuous period for the UK's largest steel producer, marked by the collapse of funding package talks last year between ministers and the former Chinese owner, Jingye.
Lawmakers gathered for an extraordinary Saturday sitting to vote on taking the plant into public control, citing concerns that failure to act would lead to the closure of Britain’s last two arc furnaces and put thousands of livelihoods at risk. The government confirmed that despite "extensive discussions" with Jingye in recent weeks, no agreement could be reached on the plant's future, paving the way for unilateral nationalisation.
Under the recently enacted legislation, ministers can nationalise a steelmaker deemed vital to the country's future if it meets a public interest test. The Business Department has confirmed that this test was met earlier this week, and an independent valuer will now be appointed to assess whether Jingye should receive compensation for the takeover.