Government officials said steel is vital to the U.K. economy, and maintaining production at British Steel’s Scunthorpe site is essential to preserving the U.K.’s ability to make steel domestically.

“British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength. Today’s decision secures the future of steelmaking in the U.K., protects skilled jobs and safeguards a vital national capability,” said Prime Minister Keir Starmer in the government’s official statement.

The U.K. government took operational control of the business in April 2025 to keep the blast furnaces running. Since then, the government has worked intensively to find a long-term solution for the business, it said.  

“Despite extensive discussions, it was not possible to reach an agreement with the former owner Jingye that would secure the future of the company while delivering value for taxpayers,” it said.

The government said the first priorities for the new leadership team — made up of newly-appointed non-executive directors — will be to stabilize operations on site and maintain production while managing health and safety.