Contents

Summary 4

1 Background 5

1.1 British Steel’s decarbonisation plans 5

1.2 Loss-making activity 5

1.3 British Steel announces plans to close blast furnaces 7

1.4 MPs support retaining virgin steelmaking for the UK 8

2 Steel Industry (Special Measures) Act 2025 10

2.1 Powers to direct a steel company 10

2.2 Recovery of government expenses and compensation to a steel

company 11

2.3 Reporting commitments 11

2.4 Opposition views 13

2.5 House of Lords debate on 23 October 2025 13

3 How does the act affect British Steel? 15

3.1 Decision on the future of British Steel pending 15

3.2 Company developments 17

4 What steps would the government take to nationalise British Steel?

18

4.1 The process 18

4.2 Historical precedent 19

5 Costs to public funds 20

5.1 Will British Steel’s owners be compensated? 21