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