STORY
The Government is to introduce new legislation giving ministers the option to bring British Steel into public ownership, subject to a public interest test. The powers will be announced in the King’s Speech on Wednesday and could allow British Steel to return to Government ownership for the first time since it was sold off in 1988.
Ministers said the legislation would provide a route to safeguard UK steelmaking capacity and avoid a sudden halt in production at Scunthorpe. The Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to keep production running and prevent the closure of the blast furnaces, which it said could have disrupted supply chains and put thousands of jobs at risk.
The Department for Business and Trade said talks had continued with British Steel’s current owner, but that it had not been possible to agree a commercial sale on terms that would deliver acceptable value for money for taxpayers. Any decision to use the new powers would depend on the public interest test, including factors such as national security, critical national infrastructure and support for the economy.