The UK government has formally brought British Steel into public ownership, saying the move will "protect the future of steel production" at the Scunthorpe site. The company employs around 2,700 people and had been under government operational control since April last year, after fears that Chinese owner Jingye Group was preparing to shut down its two blast furnaces. Prime Minister Keir Starmer said the decision safeguards a "cornerstone of Britain's industrial strength" and protects skilled jobs, while business secretary Peter Kyle said the focus now shifts to stabilising the business and building a decarbonised steel sector.

Parliament passed legislation on Wednesday enabling nationalisation where a public interest test is met. Jingye has already indicated it will seek compensation, having said in June last year it would try to recover up to £711m in debts owed by British Steel; an independent valuer will assess any compensation payable, with a scheme due in autumn. The National Audit Office found in March that running the Scunthorpe works was costing the government about £1.3m a day. Separately, official figures showed the UK economy grew 0.1% in May despite the impact of the Iran war.