The UK government is considering nationalising British Steel as its Scunthorpe plant faces a potential shutdown due to financial instability. The company has declared its blast furnaces “no longer financially sustainable,” raising fears over 2,700 job losses. Owned by Chinese firm Jingye since 2020, British Steel has been losing approximately £700,000 daily despite over £1.2bn in investments.

Chancellor Rachel Reeves has reassured unions that nationalisation remains an option to safeguard the strategically important steel industry. A critical decision looms, as new orders for raw materials must be placed this week to keep operations running. Without them, shutting down the furnaces could make restarting extremely difficult.

The government had proposed £500 million in support to help shift operations to electric arc furnaces, but British Steel rejected the offer. Ministers, including the Prime Minister, emphasized that all solutions are still being considered.

Local MP Martin Vickers supported temporary nationalisation to stabilize operations and attract future private investment. With local elections approaching, the steel crisis has taken center stage, with political figures like Nigel Farage also urging for public ownership.

The government continues to push for a private-sector-led recovery but insists it is committed to preserving UK steel production and protecting jobs.