Overview
- The government transferred British Steel into public ownership on Thursday 16 July 2026 after Parliament passed the Steel Industry (Nationalisation) Act 2026.
- Ministers say the takeover was needed to keep Scunthorpe’s ageing blast furnaces running and to preserve production of ‘virgin’ steel used for rail, defence and major infrastructure.
- The National Audit Office has estimated running the Scunthorpe operations costs the state about £1.3 million a day and ministers have committed to cover immediate operating expenses.
- Former owner Jingye has signalled it will seek compensation and China’s commerce ministry has publicly complained, creating a likely legal and diplomatic dispute over payment and treaty obligations.
- A government‑appointed leadership team will stabilise operations while officials prepare regulations and an independent valuation in the autumn to set compensation and plan longer‑term investment and decarbonisation options.