Issued by: Department for Business and Trade and Prime Minister's Office, 10 Downing Street

New legislation to be announced in the King's Speech on Wednesday will give government the option to bring British Steel into public ownership.

• Government to introduce legislation which would give it the option to nationalise British Steel, subject to public interest test being met.

• Primary legislation would give Government a route to safeguard UK steelmaking capacity and avoid sudden halt of production at Scunthorpe, while it considers options for British Steel to help deliver on government’s Steel Strategy ambitions.

• Move strengthens economic resilience and backs Government’s long term ambition for a resilient, modern UK steel sector.

British Steel could be back in Government hands for the first time since being sold off in 1988, thanks to powers that will be included in new legislation to be set out in the Kings Speech on Wednesday.

The new powers would be subject to public interest tests, and if used to nationalise British Steel, they would boost national security while giving stability to workers at Scunthorpe, and British Steel’s suppliers and customers.

The Prime Minister announced the new legislation in a speech today (Monday 11 May) where he set out his plan to boost our sovereign capabilities, protect British industry, and prioritise British jobs and industrial communities.

The Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of the blast furnaces, which would have disrupted supply chains and risked thousands of jobs.

Since then, the Government has been in discussions with British Steel’s owner to find a pragmatic and realistic solution for the business on acceptable terms.

It has not been possible to agree a commercial sale with the current owner, and government does not believe an agreement could be reached which would deliver acceptable value for money for taxpayers.

The Government believes introducing legislation to provide a route to public ownership is the appropriate next step, while recognising that any decision to use the powers in the Bill would be subject to the Bill’s public interest test being met.

The public interest test considers factors including national security, maintaining critical national infrastructure and supporting the economy.

The announcement today follows the launch of the Government’s landmark Steel Strategy in March, which set out its long‑term plan to revitalise the UK steel sector and bolster economic resilience by meeting up to 50 percent of UK steel demand domestically.

Prime Minister Keir Starmer said:

"Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.

"This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector."

Business Secretary Peter Kyle said:

"Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.

"Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation."

Following the Government’s intervention in April 2025, British Steel has continued operating at the Scunthorpe site, protecting steelmaking capacity and supporting jobs across the local economy and supply chain, providing reassurance and stability for the town and its workforce.

The new Bill will be formally introduced to Parliament this week. Any decision to bring British Steel into public ownership would only be taken after the Bill receives Royal Assent, and if the public interest test set out in the legislation is met.

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