The UK government formally took British Steel into public ownership on Wednesday, completing a nationalisation process that began when ministers intervened to prevent the Scunthorpe steelworks from closing in April 2025.
The Steel Industry (Nationalisation) Act received Royal Assent on Tuesday, paving the way for the expropriation of the plant from its Chinese parent company Jingye Group, which had remained the economic owner until the transfer. Prime Minister Sir Keir Starmer said the move secures the future of steelmaking in the UK, where roughly 2,700 people are employed at the Scunthorpe site and an estimated 4,000 jobs were at risk.
Jingye, which bought British Steel in 2020 after its previous owner placed it in compulsory liquidation, has begun seeking compensation. The business had been losing £700,000 a day, while the National Audit Office reported in March that the government's interim operation of the steelworks cost about £1.3 million daily. An independent valuer will be appointed to assess compensation.