Full nationalisation of British Steel expected in King's speech

"The full nationalisation of British Steel is expected to be announced in the King's speech this week, a year after the government took over the daily running of the loss-making business from its Chinese owner. The steelmaker, which employs 3,500 people at its plant in Scunthorpe, came under government control last April amid fears that its owner, Jingye, was planning to shut down the site. British Steel operates the last two remaining blast furnaces in the UK, but its economic control remains with the Chinese company, which bought it out of insolvency in early 2020."

"Closure of the British Steel plant would have ended Britain's primary steel-making ability as blast furnaces allow the metal to be made from scratch, rather than relying on scrap. However, by the end of January this year the cost of keeping British Steel running had risen to 377m, and could exceed 1.5bn by 2028 if it continues at its current rate, according to estimates from the National Audit Office."

"The Chinese company had planned initially to build an electric arc furnace at Scunthorpe and another at a site in Teesside, though negotiations with the government ultimately fell through. Jingye then sought to shut down the blast furnaces in April 2025. British Steel was bought by the private equity group Greybull Capital in 2016, but it collapsed into insolvency three years later. It was bought by Jingye in March 2020."

"The company has attracted interest from potential buyers, with the Miami-based retail investor Michael Flacks having declared himself very interested in buying it in February. Earlier this month, Sev.en Global Investments, the owner of the UK's largest electric steelworks, suggested the government should find a single buyer for British Steel and Speciality Steel UK, a move that would create the country's biggest steelmaker."

The government is expected to announce full nationalisation of British Steel in the King’s speech. The government took over daily running of the loss-making business last April after concerns that its Chinese owner, Jingye, might shut the Scunthorpe site. British Steel employs 3,500 people and operates the last two blast furnaces in the UK, which enable steel production from scratch. Economic control remains with Jingye, which bought the company out of insolvency in early 2020. Keeping the plant running has become increasingly expensive, with costs estimated at 377m by the end of January and potentially exceeding 1.5bn by 2028. Potential buyers have shown interest, including Michael Flacks, while Sev.en Global Investments has suggested a single buyer for British Steel and Speciality Steel UK.

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