The government will put British steel under public ownership

British Steel has fallen into public ownership after the government moved to “protect UK steel jobs”.

The future of the steelworks in Scunthorpe, which employs around 2,700 people and supports many other industries in North Lincolnshire, has been shrouded in uncertainty in recent years.

“Today’s decision secures the future of steel jobs in the UK, protects skilled jobs and protects vital national capacity,” said Prime Minister Sir Keir Starmer.

The UK government took control of British Steel’s operations in Scunthorpe last year, although it has since remained under the ownership of China’s Jingyi Group.

Genji said he had started the process of claiming compensation from Nationality, which previously said the business was losing £700,000 a day. However, he said the UK government could limit or deny compensation.

Starmer added: “British steel is part of our nation and a cornerstone of Britain’s industrial strength.

“This Government will act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on grow long into the future.”

The government had previously asked private investors to take over the steel industry, which initially stopped nationalization altogether.

“British Steel now belongs to the British people and our focus is on the future: stabilizing the business, supporting the communities that rely on it and building a sustainable, competitive and carbon steel sector for years to come,” said Business Secretary Peter Kyle.

On Wednesday, Parliament passed legislation allowing the government to bring the steel industry into public ownership, citing a public interest challenge.

A spokesman for the Department of Business and Trade confirmed on Wednesday that the government was “strongly considering” using the new powers in the case of British Steel.

“The Steel Act gives us the authority to nationalize steel companies where necessary for the public good, to protect the foundation industry that supports critical national infrastructure, the economy and defense,” the department said in a statement.

In March, the National Audit Office released a report which revealed that Scunthorpe’s steel works were Costing the government £1.3m a day.