Fresh call for British Steel nationalisation as uncertainty drags on at Scunthorpe works

A year after the government stepped in to keep British Steel’s Scunthorpe plant running, questions over its long-term future are still hanging heavily over North Lincolnshire. The steelworks, one of the county’s most significant industrial sites, remains at the centre of a political and economic debate that matters well beyond Westminster. For Lincolnshire readers, the issue is not abstract. The Scunthorpe plant employs 2,700 staff, around three-quarters of British Steel’s workforce, and its future is closely tied to jobs, supply chains and confidence across the wider local economy.

Labour MP Nic Dakin has now said British Steel should be brought into public ownership by the summer if the government cannot reach an agreement with its Chinese owner, Jingye. He described that as the best route for the business to move forward, secure investment and make decisions about its future. The government took control of the plant on 12 April 2025 after emergency legislation was passed to prevent the closure of its two remaining blast furnaces. Since then, however, ownership has remained unresolved, leaving workers and the area in a prolonged state of uncertainty.

That uncertainty will feel familiar to many across northern Lincolnshire, where the steel industry has long been more than just a major employer. It has shaped communities, supported local businesses and formed part of the identity of Scunthorpe and surrounding areas for generations. Speaking to the BBC, steelworker Thomas Smith, who is also a branch secretary for Community Union, said workers were still waiting for clarity. He said nationalisation would offer security and argued that the country still needs a strong steel industry.

Dakin said he had hoped the matter would be settled by the anniversary of the government’s intervention, but accepted that now looked unlikely. He argued that the current arrangement, where the government is running the company while Jingye still owns it, cannot continue indefinitely. The financial pressure is also growing. According to the National Audit Office, British Steel is costing the government about £1.3m a day.

Dakin said that figure showed why a long-term plan was urgently needed, with ownership and control aligned so the business could establish a proper strategy and attract investment. Industry minister Chris McDonald said he remained committed to finding a resolution and stressed that British Steel is of vital importance to the country. He said no decision had yet been made on nationalisation and suggested that reaching a deal with Jingye would be the quicker and cheaper option. For Lincolnshire, the stakes are clear.

Whatever form a final agreement takes, communities linked to Scunthorpe’s steelworks will want certainty, stability and a plan that protects an industry still seen by many as essential to the region and the nation.

This story was adapted by The Lincoln Post from original reporting by www.bbc.com.