Public ownership possible for British Steel

British Steel could be back in UK government hands (for the first time since being sold off in 1988), thanks to powers that were to be included in new legislation set out in the Kings Speech on 13 May 2026.

“The new powers would be subject to public interest tests, and if used to nationalise British Steel, they would boost national security while giving stability to workers at Scunthorpe, and British Steel’s suppliers and customers,” said the UK government. The public interest test considers factors including national security, maintaining critical national infrastructure and supporting the economy.

The UK Prime Minister, Sir Keir Starmer, announced the new legislation in a speech on 11 May 2026, where he set out his plan to boost the UK’s sovereign capabilities, protect British industry and prioritise British jobs and industrial communities. 

The government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of the blast furnaces, which would have disrupted supply chains and risked thousands of jobs. Since then, the UK government has been in discussions with British Steel’s owner to find a solution for the business on acceptable terms.

To read the rest of this news story in the May 2026 issue of ISMR, see https://joom.ag/nAKd/p6