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British Steel is nationalised under new UK public ownership powers
The UK government said Parliament passed the Steel Act to allow nationalisation after a public interest test, and it will cover running costs for the immediate future.
BBC Business reports British Steel has been taken into public ownership, with the government saying the move is intended to protect UK steelmaking. The decision applies to the Scunthorpe steelworks, which employs roughly 2,700 people and supports other industries in north Lincolnshire.
According to BBC Business, the Scunthorpe site has faced uncertainty in recent years. The UK government took control of British Steel operations in Scunthorpe last year, but the wider business remained owned by Jingye Group, which has said it has begun seeking compensation and previously stated the operation was losing £700,000 a day.
BBC Business also reports that an audit finding in March noted the Scunthorpe steelworks was costing the government about £1.3 million a day. Prime Minister Sir Keir Starmer said the decision secures the future of UK steelmaking, protects skilled jobs, and safeguards a national capability.
BBC Business says Parliament passed legislation this week allowing public ownership of the steel industry where a public interest test is met. Business Secretary Peter Kyle said the government will need to cover running costs for the immediate future, and an independent assessor will determine whether Jingye should be compensated.