Committee publication · Correspondence · 18 May 2026
Letter from the Secretary of State for the Department of Business and Trade relating to Introduction of Steel Industry (Nationalisation) Bill, 13 May 2026
Summary
The Secretary of State for Business and Trade notifies the Public Accounts 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 a public interest test is met, following failed commercial negotiations with British Steel Limited's owner and in furtherance of the Government's steel strategy to stabilise the sector and return domestic market share to 50%.
Key findings
- Government intends to introduce Steel Industry (Nationalisation) Bill to enable nationalisation of steel companies subject to public interest test
- The Bill will repeal the Steel Industry (Special Measures) Act (SISMA), which the Government now considers an unsustainable temporary intervention
- Government is 'strongly minded' to use nationalisation powers on British Steel Limited following failed commercial negotiations with current owner
- Nationalisation would be subject to public interest test and accompanied by a compensation scheme respecting business rights
- Steel identified as essential to growth sectors including advanced manufacturing, aerospace, automotive and critical national infrastructure
Tone
ProceduralTopics
public-financenationalisationindustrial-policymanufacturing
Key actors
Peter Kyle MP, Geoffrey Clifton-Brown MP, Department for Business and Trade, British Steel Limited, UK Government
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 powers 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.”
“… it has not been possible to agree acceptable terms which would represent a responsible use of public money.”
Source · parliament.uk record ↗