Steel Industry (Nationalisation) Bill 2026-27

The Steel Industry (Nationalisation) Bill (Bill 10) 2026-27 was announced in the Kings Speech on 13 May 2026 and introduced in the House of Commons on 14 May. It is bill 10 of the 2026-27 parliamentary session. The bill had its second reading on 21 May. It will be considered in committee of the whole House on 8 and 9 June, with the remaining stages provisionally set for 9 June.

The bill would allow government to transfer the shares or property of a steel company into public ownership where doing so is in the public interest.

The bill does not immediately nationalise any steel company but gives the government powers to take action in certain circumstances. The powers could be used to nationalise British Steel. British Steel is a steel manufacturer, which came under government direction in April 2025 enabled by the Steel Industry (Special Measures) Act 2025.

The bill requires a money resolution and a ways and means resolution.

This briefing does not provide an exhaustive guide to every clause of the bill. At the time of publication, the government has published a range of accompanying documents alongside the bill:

• Explanatory notes
• An impact assessment
• A delegated powers memorandum
• A human rights memorandum

All these can be found on the parliamentary bill page for the Steel Industry (Nationalisation) Bill (Bill 10) 2026-27.

British Steel and special measures

In April 2025, the government used powers under the Steel Industry (Special Measures) Act 2025 to direct British Steel’s operations after the company announced plans to close blast furnaces at Scunthorpe. This allowed the government to support the continued operation of the furnaces. The government has since provided around £484 million in support. As of May 2026, ministers stated they were “strongly minded” to nationalise the company if it is in the public interest.

Overview of the bill Structure of the bill

The bill contains four parts.

Part 1 would give the government powers to acquire a steel undertaking if it considers such a step to be in the public interest. The acquisition under these ‘principal transfer powers’ would take place through transfer of shares or property – for example, by transferring shares in a business, or property such as a factory, from a private owner to the government. The government would also be able to undertake additional share and property transfers, including onward transfers to other entities or reverse transfers back to the original entity. Other powers would enable the government to maintain continuous operations of any new entity.

The principal transfer powers to transfer shares or property would be limited to two years but may be extended.

Part 2 would establish a framework for a compensation scheme. Regulations would establish a process to determine whether original owners should be compensated for their shares and property and how a compensation would be calculated.

Part 3 would allow the government to provide financial assistance in relation to a use of the powers in part 1. Part 3 would also provide for the repeal of the Steel Industry (Special Measures) Act 2025.

Part 4 contains clauses on regulation-making procedures and commencement of the bill. It sets out that the bill would extend to England, Wales, Scotland and Northern Ireland.

The bill’s structure and powers draw on the precedent (PDF) set by the Banking Act 2009.

Impact

The government’s impact assessment describes the bill as a framework, with most impacts depending on whether powers in the bill are used.

It said the bill would have limited immediate effects but that if the government exercised the bill’s powers it could involve significant costs. These include the expenditure of running a government-owned company, potential compensation payments, operating costs if the company is loss-making, working capital injections, and further capital investments to improve efficiency.

The impact assessment also said that potential benefits include preserving jobs, maintaining supply chains and supporting regional economic stability. It said the overall impacts on economic security and resilience would be positive.

Reactions to the bill

On 14 May 2026, during a debate on the King’s Speech, Labour Party backbench MPs welcomed the bill that would enable the nationalisation of British Steel. Some MPs said it would be a step towards a wider conversation on nationalising certain industries, such as the water industry, where in the public interest.

UK Steel, an industry body, and the GMB trade union have broadly welcomed the bill as providing certainty for the workforce and supply chains. Expert commentary has been limited, but some legal experts have highlighted the legal complexity of government intervention in industry and the issues relating to compensation to the previous owner.

China’s Government has urged the UK to act prudently and respect the wishes of firms and market principles”. It said it would take strong measures to protect the legitimate rights of Chinese companies, including Jingye, the current owner of British Steel.

The steel industry and its challenges The strategic role of the steel industry

The government considers the steel industry to be strategically important for national security, economic resilience and the transition to low‑carbon energy. In the UK Steel Strategy, it describes steel as essential for sectors such as defence, construction and infrastructure, including rail and energy networks.

Structural challenges

Over the past 25 years, the UK steel sector has experienced structural challenges and declining output. For example, production has fallen from 15 million tonnes in 2000 to around 4 million tonnes in 2024 (PDF). While steel remains important for the economy, the sector’s share of GDP has decreased from 0.25% of GDP in 2000 to below 0.1% in 2024 , and employment has fallen from about 50,000 in 2000 to 37,000 in 2024. The industry has been affected by increasing global competition and high domestic energy costs. In addition, ageing assets and low‑carbon production technologies require investment.

Global pressures and trade

According to the Organisation for Economic Co-operation and Development (OECD), global overcapacity (where supply exceeds demand) is a persistent problem (PDF) for the steel sector, eroding profitability and limiting manufacturers’ capacity to invest in modernisation and decarbonisation. At the same time, trade barriers such as tariffs and safeguard measures have increased internationally. To mitigate the impacts of increased imports, the UK is introducing new steel trade measures such as smaller quotas and higher tariffs. It is also developing a carbon border adjustment mechanism, which will place a cost on the carbon content of some imported goods, including steel.