Scunthorpe Steel Workers Get Job Security as Government Takes British Steel Into Public Ownership

For the families of thousands of steelworkers in Scunthorpe, this week's news brings real relief. The threat of job losses that has hung over the town for more than a year looks set to lift, with the government stepping in to secure the plant's future once and for all.

Prime Minister Sir Keir Starmer announced that the government will bring forward legislation to take British Steel into full public ownership.

The Scunthorpe steelworks employs around 3,500 people directly. Beyond the plant gates, tens of thousands more jobs across the country depend on the steel it produces. Network Rail, for example, sources around 95% of its track from the site. Without it, Britain would lose its only remaining ability to make steel from scratch.

The government first stepped in last April, seizing control of the Scunthorpe site after its Chinese owner, Jingye, threatened to shut down the blast furnaces. Jingye said the plant was losing around £700,000 a day. Since taking over day-to-day running, the government has been spending roughly £1m a day to keep operations going. That bill now stands at £377m and could top £1.5bn by 2028 if things carry on as they are.

Starmer said a private sale had been explored but could not be agreed. Taking the company into public ownership, he said, was in the public interest.

Trade unions were quick to back the move. The Community union, Unite, and GMB all voiced their support. Roy Rickhuss of the Community union said the Scunthorpe workforce was "world class" and that British Steel had a "bright future" making steels vital for the UK's railways and building projects.

Industry body UK Steel welcomed the announcement too, saying it gave "vital certainty" to the 2,700-strong workforce and the firm's customers. But its director-general, Gareth Stace, was clear that nationalisation should only be a first step. He called for a "clear and credible long-term plan" and a proper investment strategy. Owning the business, he said, is not the end goal.

The Scunthorpe plant is home to the last two blast furnaces in the UK. These allow steel to be made from raw iron ore, rather than melting down scrap metal. If the furnaces had gone cold last year, restarting them would have been extremely difficult and hugely expensive. That moment was avoided when the government took control.

The formal announcement is expected in the King's Speech later this week. After that, an independent valuation of the business will be carried out to decide what, if any, compensation is owed to Jingye.

This is not the first time British Steel has ended up in public hands. The company collapsed in 2019 and was run by the Insolvency Service for nine months at a cost of £600m, before Jingye stepped in to buy it in 2020. Before that, the original British Steel was nationalised in 1967 and privatised under Margaret Thatcher.

For Scunthorpe, the priority now is knowing what comes next. Workers and the wider community will be looking for firm commitments on investment and a long-term plan that keeps the furnaces burning and the jobs secure.