On April 12, 2025, the UK government enacted the Steel Industry (Special Measures) Act 2025, granting it emergency powers to intervene in British Steel's Scunthorpe plant operations. This legislation was introduced after the plant's Chinese owner, Jingye Group, rejected government offers to supply essential raw materials, instead demanding hundreds of millions of pounds without safeguards. The government's intervention aims to prevent the closure of the UK's last facility producing steel from scratch, which would have significant implications for national security and key industries such as construction and defense. ​

The new law allows the Business Secretary to oversee operations, secure essential raw materials, and ensure workers are paid, stopping short of full nationalization. It also makes it a criminal offense to fail to comply with directions made under the legislation, punishable by up to two years in prison. ​

The intervention has been met with strong local support, as the Scunthorpe plant is vital for the UK's steel production capacity. However, critics have raised concerns about the lack of a sunset clause and the absence of similar measures for other steel plants in the UK. ​

This move marks the most significant UK nationalization since the 2008 bank rescues and underscores the government's commitment to safeguarding critical industries and jobs.