UK to Introduce British Steel Nationalisation Bill

Prime Minister Sir Keir Starmer announced on May 11 that his government will introduce legislation this week to enable public ownership of British Steel, potentially returning the company to state control for the first time since its privatization 38 years ago.

The move follows a year of government intervention at the Scunthorpe steelworks in northern England, British Steel's primary site. In April 2024, officials used emergency powers to seize operational control from owner Jingye Group, a Chinese firm that had proposed closing the two blast furnaces. The action prevented the shutdown of the UK's last primary steelmaking capability, preserving production of virgin steel used in construction, rail, and automotive sectors, as well as around 2,700 direct jobs and thousands more in the supply chain.

Negotiations with Jingye since then failed to yield a commercial sale that officials deemed acceptable for taxpayers, prompting the new legislative step. The proposed law includes a public interest test evaluating factors such as national security, critical infrastructure, and economic support before any takeover. Starmer described steel as "strategically important to our economy and...