The statement came weeks after the government announced preparations for legislation that would grant it new powers to take such a step.

In a written statement, the Cabinet Office said that the powers included in the bill would be used to bring British Steel into public ownership in the future if deemed necessary in the public interest.

The statement noted: “The government remains committed to using the powers contained in the bill to bring British Steel into public ownership in the future, should it be required in the public interest.”

Chinese-owned Jingye Steel, the owner of British Steel, announced in early June that it was seeking compensation from the UK government for losses incurred on investments made in the company, which has been under government control since April 2025.