British Steel 'could be nationalised within days'

British Steel could be nationalised within days after legislation to bring the firm into public ownership received a final seal of approval.

The Steel Industry (Nationalisation) Act 2026 has received Royal Assent.

The move allows ministers to transfer steel businesses’ shares or property into public ownership.

Industry minister Chris McDonald said that “if the public interest test is met”, nationalising steel “is the right thing to do”.

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

But 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.

It is thought the Government previously tried to negotiate with British Steel’s owners on a commercial sale of the company, but failed to strike a deal.

A Department for Business and Trade spokesperson said: “The Steel Act will give us powers to nationalise steel companies where it’s necessary in the public interest, to protect a foundation industry that supports our critical, national infrastructure, economy and defence.

“We’ve been clear that we’re strongly minded to use these powers in relation to British Steel.”

The spokesperson added “no decision can be taken” until ministers have considered the public interest.

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