The prime minister has revealed that British Steel will be taken into public ownership.
Sir Keir Starmer stated that this week, a bill would be introduced to grant the government authority to assume "complete control of British Steel," pending a public interest evaluation.
The action follows the government's takeover of British Steel's Scunthorpe facilities from its Chinese owners Jingye in April last year to prevent the possible shutdown of its blast furnaces.
Sir Keir stated that the government had discussions with Jingye, but a commercial sale has not been achievable, and now a public test could occur.
"The prime minister stated in a speech intended to address a leadership challenge that public ownership benefits the public interest after Labour's disappointing election outcomes."
He stated that he would demonstrate to his "skeptics" that they are mistaken and that for the citizens of Britain, transformation cannot arrive swiftly enough.
The announcement was greeted positively by the steelmaking industry. Gareth Stace, director-general of the industry organization UK Steel, stated it offered "crucial assurance" for the 2,700 employees and the customers of the company.
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"Keeping the ability to produce British Steel's products domestically is crucial not just for economic development but also for our national security and resilience," he stated.
Stace remarked that nationalisation was not a final objective, emphasizing that it should mark the "start of a well-defined and trustworthy long-term strategy for British Steel together with an investment plan.
Up until now, the government had refrained from fully nationalizing British Steel as it sought possible private investors for the facility.
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It took over the steelworks in April of last year after negotiations with owner Jingye failed, following claims that the Chinese company intended to turn off the furnaces.
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If the furnaces had run out of fuel and extinguished, the UK would have lost the ability to create so-called virgin steel, since restarting them is highly challenging and expensive.