Reynolds signals British Steel investment move

Jonathan Reynolds has signalled a move towards private investment in British Steel – but said a degree of public control could be maintained.

The new Business Secretary said it has “always been about bringing in a private sector partner”, while suggesting the Government could have a golden share arrangement.

British Steel was nationalised earlier this month, under Sir Keir Starmer’s leadership, in a bid to protect the UK’s steelmaking capability and supply chains.

Using the Steel Industry (Nationalisation) Act 2026, ministers wrested control of British Steel, which was previously owned by the Chinese company Jingye that had planned to close its Scunthorpe blast furnaces.

British Steel's estate also includes the Teesside Beam Mill, near Redcar, which makes large steel sections for construction projects, and a special profiles plant in Skinningrove, east Cleveland, which makes parts for the construction, earthmoving, forklift and mining sectors.

Mr Reynolds has suggested new Prime Minister Andy Burnham doesn’t intend to keep British Steel in state ownership for the long term.

He also said the Government recognises it needs to attract “quite a lot of capital” to the water industry “to give it the kind of resilience and the results that people want”.

The update came after the Prime Minister suggested he wants to bring in a ten-year plan to renationalise the water sector.

Mr Reynolds said: “Unless the UK economy grows more strongly, no Government department is going to be able to satisfy its desires.”

Under former Greater Manchester mayor Mr Burnham, Mr Reynolds is heading a new department known as the Department for Business, Innovation, Science and Trade.

It takes in the recently scrapped Department for Science, Innovation and Technology.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.