Starmer nationalises British Steel ahead of leadership handover to Burnham
Business Secretary Peter Kyle says former owner Jingye may receive no compensation as independent assessor prepares to rule on compensation under parliamentary legislation
Outgoing UK Prime Minister Keir Starmer has completed the nationalisation of British Steel on his final full day in office, a move undertaken as he prepares to transfer the Labour leadership to Andy Burnham. The decision marks a significant policy shift in the final hours of Starmer’s tenure, coinciding with a diplomatic visit to Ukraine that underscores the government’s continued focus on international security commitments.
The nationalisation was enacted through legislation that had previously passed through parliament, providing the statutory basis for the state takeover of the steelmaker. The asset was formerly owned by Jingye, a Chinese firm, and the transfer of ownership represents a substantial intervention in the industrial sector as the outgoing administration seeks to secure its policy legacy before the party leadership transition.
Business Secretary Peter Kyle addressed the financial implications of the takeover, stating that Jingye may receive no compensation for the nationalisation. Speaking on Times Radio, Kyle confirmed that the legislation contains specific mechanisms for determining financial redress, placing the final authority in the hands of an independent assessor rather than the government directly.
Kyle indicated that there is a possibility no compensation will be paid, noting that the independent assessor will judge whether any amount is due under the terms of the passed legislation. This approach shifts the determination of financial liability away from political negotiation and into an independent regulatory framework, a detail that will likely influence market reactions to the nationalisation.
The timing of the nationalisation and the Ukraine visit occurs against the backdrop of a political transition within the Labour Party. Starmer is set to hand over the leadership to Andy Burnham, with the business secretary’s comments on compensation providing the first official clarification on the financial settlement for the former private owner as the new leadership era approaches.
