UK Steel has welcomed the British government’s decision to move towards the nationalisation of British Steel, describing the step as crucial for safeguarding a strategically important part of the country’s industrial base.
Prime Minister Keir Starmer announced that the government intends to bring British Steel into public ownership after efforts to secure a commercial sale failed. According to the government, the “public interest” test for nationalisation has now been met.
The move is intended to provide stability for British Steel’s workforce, customers and supply chain at a time of mounting global market pressures and growing concerns over industrial resilience.
UK Steel stressed that maintaining domestic steel production remains essential for sectors such as infrastructure, construction, energy, rail and manufacturing, as well as for the country’s broader economic and national security interests.
“Steel is a strategic national asset”
Gareth Stace, Director-General of UK Steel, welcomed the government’s intervention.
“We strongly welcome the Prime Minister’s announcement to legislate for the nationalisation of British Steel,” Stace said. “This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment.”
He added: “Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience.”
Call for long-term investment strategy
At the same time, UK Steel stressed that public ownership should not be viewed as a final solution, but rather as the starting point for a broader long-term industrial strategy.
“Nationalisation is not an end goal,” Stace stated. “This must now be the beginning of a clear and credible long-term plan for British Steel.”
According to UK Steel, future priorities must include investment in low-carbon steelmaking technologies and measures to address high industrial energy costs, which continue to undermine the competitiveness of UK steel producers.
The association also reiterated that, with the right policy framework and investment support, the UK steel sector could play a central role in delivering the country’s industrial growth and decarbonisation goals while supporting thousands of skilled jobs.
UK Steel said it would continue working closely with government and industry stakeholders to support a sustainable and competitive future for UK steelmaking.
Source: UK Steel, Photo: Fotolia
