British Steel set to be nationalised, Starmer says

The UK government will introduce legislation this week to nationalise British Steel, Prime Minister Keir Starmer announced, following the collapse of commercial sale talks with its Chinese owner ^[1][2].

The move formalises the government's control of the Scunthorpe steelworks, which was seized from Jingye in April last year after negotiations for a private sale failed ^[1][2]. Sir Keir stated that "public ownership is in the public interest" as a commercial sale had not been possible ^[1]. Industry bodies and unions welcomed the decision. Gareth Stace, director-general of UK Steel, said it provided "vital certainty" for the company's 2,700 workers and was essential for economic growth and national security ^[1]. However, Stace cautioned that nationalisation was "not an end goal" and must be the start of a clear long-term plan ^[1]. The financial burden of the operation has been significant. Jingye had claimed the Scunthorpe site was losing £700,000 a day before the government stepped in ^[1]. By March, the cost of government supervision had reached £377m, funding operations, workers, and raw materials ^[1]. The National Audit Office projected that continuing at current rates could see costs exceed £1.5bn by 2028 ^[1]. This marks the second time the government has taken over British Steel, which previously cost taxpayers £500m during its 2019 insolvency ^[1][2].