British Steel and government special measures

On 12 April 2025, Parliament passed the Steel Industry (Special Measures) Act 2025, giving the Secretary of State powers to issue directions or take control of steel undertakings in England at risk of closure. This allowed the government to take control of British Steel’s operations, including securing raw materials, and maintaining blast furnace activity.

The government has not yet decided on the long-term future of British Steel. According to the Secretary of State for Business and Trade, nationalisation of British Steel is not the purpose of the special measures, but is a “likely option”. At the same time, the government has emphasised the need for private investment to support the company’s modernisation.

The government is working to determine the potential cost of British Steel to public funds. As of 20 June 2025, the amount of working capital provided to British Steel since the emergency legislation was passed on 12 April stood at £100 million.

Nationalisation would typically require a government decision and an Act of Parliament. The act could authorise the government’s acquisition, set out the terms of nationalisation, including potential compensation arrangements for the previous owner, define the governance structures of the new entity, address the transfer of employees, and more. Some details may be left to secondary legislation, especially where decisions must be taken urgently, or where the government seeks more flexibility.