UK Government Takes Over British Steel to Prevent Closure

The UK government has stepped in to take operational control of British Steel’s Scunthorpe plant—the country’s last facility capable of producing steel from scratch—following parliamentary approval of an emergency rescue bill.

With royal assent from King Charles III, the law now gives Business Secretary Jonathan Reynolds authority to direct the company’s operations. I Photo: British Steel

Prime Minister Keir Starmer urged lawmakers to pass the bill to prevent Chinese-owned Jingye Group from shutting down the plant’s two blast furnaces.

With royal assent from King Charles III, the law now gives Business Secretary Jonathan Reynolds authority to direct the company’s operations, ensure worker compensation, and procure raw materials like iron pellets and coking coal to keep the furnaces active.

Jingye had earlier warned that the plant was losing £700,000 (approx. $910,000) per day amid difficult market conditions and rising environmental costs.

Starmer visited Scunthorpe following the bill’s passage, meeting with relieved workers. “It’s your jobs, your lives, your communities, your families,” he said. “We’re committed to keeping this vital industry alive.”

Without intervention, experts warned the UK could become the only G7 nation without the capacity to produce virgin steel—critical for industries such as construction, defense, and rail—making the country heavily reliant on foreign imports.