Committee publication · Correspondence · 19 May 2026
Letter from the Secretary of State relating to the introduction of the Steel Industry (Nationalisation) Bill, 13 May 2026
From: Business and Trade Committee
Inquiry: Industrial Strategy
Summary
Secretary of State Peter Kyle notifies the Business and Trade Committee that the Government intends to introduce the Steel Industry (Nationalisation) Bill on 14 May 2026. The Bill would grant powers to bring steel companies into public ownership where the public interest test is met, primarily to safeguard British Steel Limited and domestic steelmaking capability as part of the Government's steel strategy. SISMA (the temporary 2025 intervention) will be repealed.
Key findings
- Government intends to introduce the Steel Industry (Nationalisation) Bill to provide powers for Government to bring steel companies into public ownership where the public interest test is met.
- Steel strategy aims to stabilize the sector, return domestic market share to around 50%, attract new investment, and position the UK as a world leader in clean steel production.
- Government is 'strongly minded' to use the Bill's powers to bring British Steel Limited into public ownership in future, subject to public interest test being satisfied.
- Negotiations with BSL's current owner on a commercial sale failed to reach acceptable terms; Government considers the Bill 'the inevitable next step' following this failure.
- The Steel Industry (Special Measures) Act (SISMA) from 2025 will be repealed as it is temporary and increasingly unsustainable.
Tone
ProceduralTopics
Key actors
Peter Kyle, Liam Byrne, Minister McDonald, British Steel Limited, Department for Business and Trade
Notable line
“We consider the introduction of this Bill to be the inevitable next step following failure to agree a deal with the BSL owner.”
Key Quotes
“Steel is an essential part of our modern economy and is key to our growth sectors, including advanced manufacturing, aerospace, automotive and critical national infrastructure.”
“SISMA is not a long-term solution and it is increasingly unsustainable, as the pow- ers in the SISMA restrict the Government's ability to put in pl ace measures that could reduce costs and improve performance.”
“Given the information currently available to us, the Government is strongly minded to use the powers in the Bill to bring British Steel Limited into public ownership in the future, subject to the public interest test being satisfied.”
“The Government has engaged in negotiations with the current owner of BSL on a commercial sale, but it has not been possible to agree acceptable terms which would represent a responsible use of public money.”
Source · parliament.uk record ↗