'Momentous day' as British Steel works nationalised

British Steel has been nationalised in a move hailed as “securing a part of the nation’s fabric”.

The Government has taken the major employer into public ownership.

Westminster says the decision represents “the best way to secure the company’s future and protect the UK’s steelmaking capability and supply chains”.

The move comes after the Steel Industry (Nationalisation) Act received Royal Assent.

British Steel was formerly owned by Chinese company Jingye, which previously planned to close its Scunthorpe blast furnaces.

Parliament was recalled last year to approve special measures legislation to keep the plant open, with ministers gaining new powers to tell the firm how it can use and manage its assets.

Hailing the nationalisation of the business, whose Scunthorpe works employs thousands of staff, Prime Minister Keir Starmer said: “British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength.

“This decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.”

Business Secretary Peter Kyle added: “British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead.”

He added a new leadership team – made up of newly-appointed non-executive directors – will “stabilise operations on site, manage health and safety effectively, maintain production and work closely with management, trade unions and staff.”

Allan Bell, British Steel interim chief executive, said: “This is a momentous day for British Steel, and everyone connected with our business.

“We are grateful to the Government for the decisive action it has taken.”

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