The UK government is considering taking control of British Steel, which is currently owned by China’s Jingye Group. The company has faced financial difficulties, losing £250 million annually despite a £1.2 billion investment. Jingye rejected a £500 million UK bailout plan and announced plans to shut down its blast furnaces at the Scunthorpe plant, threatening 3,000 jobs.
Prime Minister Keir Starmer said that “all options are on the table,” including nationalisation, to save the plant. Chancellor Rachel Reeves confirmed that the government is evaluating various measures to address the issue.
Nigel Farage warned that British steelmaking could collapse unless the government acts quickly. He and others call for nationalisation and a plan to consolidate UK steel assets under state-backed operations.
The UK has previously nationalised and denationalised its steel industry. The Iron and Steel Act 1949 initially brought it under state control, but it reversed this decision in 1953. The industry was nationalised again in 1967.
The government’s decision will have a major impact on the UK’s steel industry, jobs, and economy. More announcements are expected as discussions continue.
