British Steel could be nationalised within days as royal assent granted
The Steel Industry (Nationalisation) Act 2026 has received royal assent and is now law
Last updated 15th Jul 2026
British Steel could be nationalised within days after legislation to bring the firm into public ownership received a final seal of approval.
The Steel Industry (Nationalisation) Act 2026 has received royal assent and is now law, Commons deputy speaker Judith Cummins told MPs on Wednesday.
The new law allows ministers to transfer steel businesses’ shares or property into public ownership.
The legislation cleared the last of its stages in Parliament on Tuesday.
Industry minister Chris McDonald said “if the public interest test is met”, nationalising steel “is the right thing to do”.
And in the Lords last month, business minister Lord Leong said his team was “strongly minded to use these powers in relation to British Steel”.
British Steel is currently owned by the Chinese company Jingye.
The company previously planned to close its Scunthorpe blast furnaces in North Lincolnshire.
But Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open.
Ministers gained new powers to tell the firm how it can use and manage its assets.
They did not take a stake in the company at the time.
It is thought the Government previously tried to negotiate with British Steel’s owners on a commercial sale of the company but they failed to strike a deal.
A Department for Business and Trade spokesperson said: “The Steel Act will give us powers to nationalise steel companies where it’s necessary in the public interest, to protect a foundation industry that supports our critical, national infrastructure, economy and defence.
“We’ve been clear that we’re strongly minded to use these powers in relation to British Steel.”
The spokesperson added “no decision can be taken” until ministers have considered the public interest.
Community Trade Union’s national secretary for steel Paul McKenna welcomed the new law.
“The importance of this legislation cannot be overstated,” he said.
“Its swift progress through Parliament proves something Community has known for a long time – that the steel industry is a strategic national asset vital to our economy and national security.”
Charlotte Brumpton-Childs, national secretary at the GMB Union, said: “It’s no exaggeration to say ministers have saved the UK steel industry.
“But the hard work to keep it alive starts here, beginning with a commitment to public infrastructure projects to buy British.”
She called for a “worker voice in the new nationalised company”.
The leader of North Lincolnshire Council, Rob Waltham, is also urging the government to use it's new powers over British Steel to build a more ambitious industrial future in Scunthorpe.
He says securing virgin steelmaking is a must - with nationalisation alone not a long term plan