UK Government Considers Nationalising British Steel as Talks with Chinese Owners Stall

Ministers explore state ownership to safeguard jobs and national security after deadlock over £1bn investment plan for decarbonisation.

The UK government is weighing the option of nationalising British Steel if negotiations with its Chinese owner, Jingye Group, fail to secure a £1bn investment for decarbonisation at its Scunthorpe plant.
British Steel employs approximately 5,500 workers, with 4,000 based in Scunthorpe, the last UK site producing steel from iron ore, critical for national infrastructure and security projects.
Talks focus on replacing Scunthorpe's blast furnaces with an electric arc furnace, but disagreements persist over funding contributions, with Jingye reportedly unwilling to cover half the cost as initially expected.
Trade unions support nationalisation, citing the strategic importance of the steel industry, while critics warn of high taxpayer costs and potential inefficiencies in state ownership.
Time-sensitive discussions are underway, as British Steel's current raw material supplies are expected to run out by the end of January, threatening jobs and operations if no resolution is reached.