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Britain 'strongly minded' to nationalise British Steel says government - Finance news and analysis from Global Banking & Finance Review
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Britain 'strongly minded' to nationalise British Steel says government

Published by Global Banking & Finance Review

Posted on June 18, 2026

1 min read

· Last updated: June 18, 2026

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Finance Banking Markets UK Government Steel Industry

Britain Considers Nationalising British Steel as Compensation Issues Loom

Government Plans and Stakeholder Reactions

LONDON, June 18 (Reuters) - Britain is "strongly minded" to nationalise British Steel, the government said in a statement on Thursday, weeks after it announced plans to create new powers to allow it to do so.

Government Statement on Nationalisation

"The government is strongly minded to use the powers in the bill to bring British Steel into public ownership in the future, subject to the public interest being satisfied," a written ministerial statement said.

Legislative Powers and Public Interest

China's Jingye Steel said earlier in June it wants Britain to compensate it for the loss incurred through its investment in British Steel, which has been under the British government control since April 2025.

Compensation Demands from Jingye Steel

(Reporting by Sam Tabahriti, writing by Sarah Young; editing by William James)

Key Takeaways

  • Emergency government control of British Steel began April 12, 2025, under the Steel Industry (Special Measures) Act to avert closure of the Scunthorpe blast furnaces. (gov.uk)
  • In May 2026, the government introduced the Steel Industry (Nationalisation) Bill as part of the King’s Speech, and officials confirmed they are “strongly minded” to bring British Steel into public ownership. (researchbriefings.files.parliament.uk)
  • Chinese owner Jingye Group, which bought British Steel in 2020, is pursuing compensation via the UK–China bilateral investment treaty, claiming over £600 million in losses and invoking investor protection frameworks. (steelradar.com)

References

Frequently Asked Questions

Why is the UK government considering nationalising British Steel?
The UK government is considering nationalising British Steel to ensure its future and protect public interest, using new legal powers.
What condition must be met for British Steel's nationalisation?
Nationalisation is subject to the public interest being satisfied, as stated by the UK government.
Who currently controls British Steel?
British Steel has been under British government control since April 2025.
What is Jingye Steel's position regarding British Steel?
China's Jingye Steel is seeking compensation from Britain for losses incurred through its investment in British Steel.
What new powers has the government announced regarding steel industry?
The UK government announced plans to create new powers to allow the nationalisation of key industries like British Steel.

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