Blitz Bureau
NEW DELHI: Britain may fully nationalise British Steel under new plans announced by Prime Minister Keir Starmer. The move comes after the Government seized control of British Steel’s Scunthorpe steelworks from its Chinese owners Jingye in April last year in order to halt the potential closure of its blast furnaces.
Starmer said his Government would bring in new legislation to allow it to take ownership of the steelworks, ensuring the country does not lose its last remaining primary steelmaking capability.
Any decision will be based on a public interest test being met, which would consider national security, maintaining critical national infrastructure and supporting the economy, according to Reuters.
The steelworks supply the rail, construction, and automotive industries, but have in recent years struggled with high energy costs in Britain and a glut of steel in the global market.
“Steel is strategically important to our economy and our national resilience,” said Starmer, who was making a speech defending his leadership.
In April 2025, the government seized operational control of British Steel from its Chinese owners, Jingye, to stop the furnaces from being shut and to protect 2,700 jobs at the plant and thousands of related jobs in the supply chain.
In the months since, it has been looking for a private sector partner to secure the future of British Steel, which was privatised under Prime Minister Margaret Thatcher in 1988. Starmer said negotiations with Jingye had shown a commercial sale was not possible at this time as any agreement would not deliver acceptable value for money for taxpayers.
Business minister Peter Kyle did not rule out private sector involvement in the future. “The Government recognises that securing the longterm future of the UK’s steel sector relies on both public and private investment for modernisation,” he said in a statement.
