Trade body
UK Steel has welcomed the Government's decision to bring British Steel into public ownership, describing it as a vital intervention that secures the future of a strategically important steelmaker and provides certainty for its workforce, customers and wider supply chain.
British Steel is the UK's only producer of several essential long steel products, including rail and structural sections used across the country's transport, construction and infrastructure sectors. Preserving this capability is critical to the UK's industrial resilience, national security and future economic growth.
UK Steel Director-General Gareth Stace said: "British Steel produces products that are fundamental to building and maintaining the nation's railways, infrastructure and manufacturing base. Retaining this capability in the UK is essential to strengthening our industrial resilience, supporting economic growth and reducing reliance on imports in an increasingly uncertain world.
"Bringing British Steel into public ownership is the right move. As the next Government takes office next week, its priority must now be to deliver a long-term plan that restores British Steel to commercial sustainability, secures investment in modern, low-carbon steelmaking and creates the competitive business environment the sector needs to thrive.
"The Government has already demonstrated its commitment to the future of UK steel through its Steel Strategy and recent action on trade. We now look forward to working closely with ministers to secure a sustainable future for British Steel and ensure that the wider UK steel sector has the conditions it needs to compete, invest and grow."
The move to bring British Steel in Scunthorpe into public ownership comes after ministers concluded that it was necessary to protect the UK’s national interest.
Steel plays a vital role in the UK economy, supporting major construction projects, transport networks, energy infrastructure, defence and the delivery of our Modern Industrial Strategy.
Business Secretary Peter Kyle said: “British Steel is one of the nation’s biggest steel producers, and I’ve made the decision to nationalise the business to secure steelmaking capability and maintain production in the national interest.
“British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead.”
Public ownership provides the immediate platform from which the Government can stabilise the company and consider its future direction by exploring what opportunities there may be to deliver a long-term future for the company, including exploring possible options for private sector investment.
British Steel Interim CEO Allan Bell said: “This is a momentous day for British Steel, and everyone connected with our business – our dedicated employees, our valued customers and suppliers, and the tens of thousands of people in our supply chains and local communities. Much more than that, it is an historic day for Britain and UK manufacturing – one which safeguards our future and strengthens national security and infrastructure.”