British Steel to Be Nationalised, Saving Thousands of Jobs
Private ownership has failed.
by Joshua Carroll
11 May 2026
The government is set to nationalise British Steel, a year after stepping in to run the loss-making company and prevent its owner from shutting down operations.
The steel manufacturer employs more than 2,700 people at its main site in Scunthorpe. Its Chinese owner, Jingye, was last year accused of planning to shut down the site because it was losing money. The government stepped in to take over daily operations in April 2025 while looking for potential private investors, but Jingye still retains ownership.
Following crushing losses for Labour in last week’s elections, Keir Starmer announced the decision to nationalise British Steel on Monday during a speech aimed at fending off efforts to remove him as leader.
Labour MP Brian Leishman told BBC News that Starmer’s speech was unconvincing.
Nationalising British Steel “really should just be the start,” he said. “We’ve got to look at bringing rail, mail, energy and other vital, essential services into public ownership. That should always be the very minimum that is on a Labour party agenda in government.”
He added: “But sadly I’m afraid there was nothing really there that will meaningfully improve the lot for millions of working class people that so desperately need a change in their living standards across the United Kingdom.”
Leishman is one of 51 Labour MPs who have called on Starmer to resign. A leadership challenge would require the support of at least 80 MPs.
The Green party last month said it would support nationalising British Steel. Green MP Ellie Chowns said the measure was “clearly the only sure way to secure this strategically important sector so vital to national security and British jobs.”
If Jingye had been allowed to close the Scunthorpe facility, the process of restarting the furnaces would be costly and extremely difficult, meaning the UK would lose its ability to produce steel directly from iron ore. This virgin steel, as it is known, is used in the construction of major projects like railways and new buildings.
Joshua Carroll is a writer and journalist.