Prime Minister Sir Keir Starmer has confirmed that British steel will be renationalised.
Speaking this morning, the Labour leader referenced the saving of the Scunthorpe plant before the site’s closure and the threat of thousands of jobs being lost.
Sir Keir said: “What we did in Scunthorpe last year was one of the proudest things we’ve done in Government.
“Steel is the ultimate sovereign capability. Strong nations in a world like this need to make steel.
The move is subject to a public interest stress test
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“That’s why we’re backing steel in Port Tablot and across the UK.
“In Scunthorpe, we have been negotiating with the current owner and an agreement hasn’t been met.
“I can announce legislation has been brought forward, subject to a public interest test, to take full national ownership of British steel.”
Charlotte Brumpton‑Childs, GMB National Secretary, said the move was long overdue.
“Unions have long known Jingye will not negotiate in good faith.
“This legislation will cover the whole steel industry – it isn’t written solely for British Steel, but it is what will ultimately protect the company from foreign owners.
“British Steel is a nationally strategic asset, and it is right that the Government does everything in its power to secure its long‑term future.
“GMB welcomes this decisive and timely intervention, which will help safeguard one of the UK’s most important industries.”
British Steel employs around 4,000 people across its manufacturing sites in Scunthorpe and Teesside.
Earlier this year, the company secured a record order through a landmark UK–Nigeria agreement — a deal seen as a major boost for its export pipeline and long‑term order book.
Prior to the announcement, Ben Houchen, the Conservative Mayor of Tees Valley, had said he supported the potential nationalisation.
He has been lobbying the Government since last year to sign off on subsidies for Jingye to build electric arc furnaces at Scunthorpe and Redcar.
He previously said: “We now need to see a serious plan for the years ahead. Nationalisation must not be a slow drift into decline – it must be the starting point for rebuilding Britain’s industrial base.
British Steel employs around 4,000 people
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“Crucially, ministers will soon control where investment happens. They used to say, ‘We can’t tell a private company where to invest.’ Now they can. So let’s get on with it and build in Teesside.”
Opposition parties have also backed nationalisation previously.
Nigel Farage of Reform UK said: “China has no interest in keeping the steelworks open. Reform have been clear from the start that the only option we have to save this vital strategic asset – and thousands of jobs in the process – is to nationalise British Steel.”
Green MP Ellie Chowns has said: “The Green Party will be backing nationalisation of British Steel – which is now clearly the only sure way to secure this strategically important sector so vital to national security and British jobs.”