British Steel 'needs nationalising by the summer'

British Steel needs to be brought into public ownership by the summer if a deal between its Chinese owner and the government fails, an MP has said.

Labour MP Nic Dakin told the BBC that was "the best outcome" for the business to move forward and get investment while talks with firm Jingye are ongoing, as the tenure remains unresolved a year on.

The government took control of the Scunthorpe plant, which employs 2,700 staff - about three-quarters of the company's workforce - on 12 April 2025 to prevent the last two remaining blast furnaces from closing.

Industry minister Chris McDonald said he remained committed to resolving a deal because British Steel "is of vital importance to the country".

Dakin, the Scunthorpe MP, said he had hoped the ownership issue would be settled by the anniversary of the government's intervention, but accepted this was now unlikely.

"I would hope that it's resolved as soon as possible, certainly by the summer," he said.

"In the short term, it needs to come into public ownership so that the business can make its own decisions about its future. And that future may well involve new investors or new owners."

Uncertainty about British Steel's future has continued to hang over workers and the local economy.

Steelworker Thomas Smith, who is also branch secretary for Community Union, said: "We're a year on now. We're not really any further and we all want to know what's next."

Smith said he favoured nationalisation as it offered workers "security".

"I think the whole nation realises that we need the steel industry," he said.

"We all know that we're the best in the world at making steel and we know they believe in us."

Dakin said securing UK steel production was a matter of national security given the current geopolitical situation.

He said the current arrangement – with the government running the company while Jingye retains ownership – was unsustainable.

According to the National Audit Office, British Steel is costing the government about £1.3m a day.

Dakin said those costs underlined the urgency of agreeing a long-term plan.

He said: "We need the owner and the controller to be the same entity so we can sort out a business plan and have the investment into the business, so it can do what everybody knows it can do in the future, which is make money and return money to the business and to the taxpayer."

McDonald, a minister in the Department for Energy Security and Net Zero, said there was "a strong future" for the UK steel industry, but did not give a timetable for resolving British Steel's ownership.

"No decision's been made on whether to nationalise the company," he said.

"If we can come to a good resolution with Jingye, then that will be the quicker and cheaper route to resolving the issue."

The plant recently secured major contracts to build a railway in Turkey, as well as a £500m deal to make tracks for Network Rail.

However, analysts believe they may not be enough to secure the company's long‑term future.

Steel analyst Jonathon Carruthers‑Green said the deals were "definitely a step in the right direction", but said investors would be looking for sustained momentum rather than isolated successes.

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