July 14th, 15th and 16th 2026 were significant days for British Steel. Crucially, they saw it return to public ownership. We want to have a closer look at this story here. Then, if you want to order ERW tube from one of the most reputable suppliers in the UK, you can rely on us.
Approval
The Steel Industry (Nationalisation) Bill had been making its way through parliament for a few months. Notably, peers in the House of Lords proposed amendments. On July 14th the House of Commons gave approval. The Bill then got Royal Assent and became law the following day.
The Government was quick to act on their new powers. On July 16th they announced British Steel would be nationalised because it was in the public interest. Crucially, it protects a key foundation industry, jobs, and the wider economy.
Why was British Steel nationalised?
British Steel has had a very turbulent time for decades. It’s been in public and private ownership at different points. However, it’s had a series of struggles over that period. Talk to us if you want to order ERW tube.
More recently, British Steel entered insolvency in 2019, putting 5,000 jobs at risk, before being bought by the Jingye Group. There was hope this would be a positive move, with the Chinese company promising to invest £1.2bn to upgrade the facilities in Scunthorpe and Teesside. Sadly in 2025 the Government had to intervene, taking control of British Steel to protect jobs and steel production.
The main reason British Steel is now back in public ownership is to protect our ability to produce primary steel from iron ore. The blast furnaces in Scunthorpe are the last in the UK. So, the Government has deemed it is in the national interest to ensure they remain operational. It is significant for security, construction, infrastructure, energy, and more.
What happens now?
The key thing now is British Steel will have a new leadership team. It will be their job to stabilise the business and ensure it has a brighter future. They will also have the task of protecting jobs and the communities relying on UK steel production. Remember you can rely on us if you need to order ERW tube.
There has been a lot of praise for the move to nationalise, including from politicians, unions, and communities. The response from China has been negative though. Jingye Group has criticised the lack of compensation, warning they may seek arbitration. However, work is underway to determine if compensation is payable. There will need to be an independent valuation and then a scheme agreed if it is due. The expectation is we will get details in the coming months.
One of the most important things now is to look to secure the long term future of British Steel. Critics say the business has been struggling for so many decades under public and private ownership because there are core structural and organisational issues to resolve. There are also other problems, such as high energy costs. However, the new Supercharger and British Industrial Competitiveness Scheme would be a massive help.
Ordering ERW tube
Steel in all its many forms is the backbone of the UK economy. At Union Steel Tubes, we’re proud to play a part in this. We supply exceptional tubing for various applications. Clients can rely on us to achieve high standards and provide a fast turnaround on orders. So, get in touch today if you need tube.
