Prime Minister Sir Keir Starmer said the UK will take full ownership of British Steel after emergency legislation last year placed the Scunthorpe plant under state control. Negotiations with Chinese owner Jingye collapsed, with the latter demanding over £1bn in compensation and rejecting a £100 million offer. New legislation this week will give the government a public‑interest test to nationalise the steelmaker and clear policy direction.

The state now controls strategic assets: the site houses Britain’s last two blast furnaces and supplies 95 percent of steel for domestic rail tracks. Running costs top £1.3mn a day, with £377 million spent between April and January to keep operations afloat. Unions welcomed the move, saying it ends a year‑long limbo for workers. The cost burden has strained public finances.

By nationalising, the government can steer British Steel toward a greener electric‑arc furnace strategy and attract private capital for modernisation. Business secretary Peter Kyle framed the step as essential to revitalising the sector, while Labour hopes the bold action bolsters Starmer’s embattled premiership after a disastrous local‑election result. The decision also removes legal obstacles that had blocked any sale or strategic partnership.