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UK Law Reference
All Legislation
Company & Commercial Law
c. 27
UK-wide
partly in force

Steel Industry (Nationalisation) Act 2026

View on legislation.gov.uk

Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.

Summary

The Steel Industry (Nationalisation) Act 2026 gives the Secretary of State time-limited powers to take steel undertakings into public ownership. It authorises two 'principal transfer powers' — share transfer regulations (transferring securities issued by a specified steel undertaking to the Secretary of State, a nominee, or a wholly-owned company) and property transfer regulations (transferring property, rights and liabilities) — exercisable only where the Secretary of State considers it necessary in the public interest, which expressly includes defence and national security, critical infrastructure, and supporting the UK economy. The powers are subject to a two-year sunset from Royal Assent (extendable by affirmative-procedure regulations). Part 2 obliges the Secretary of State to make compensation scheme regulations, with independent valuation of compensation. The Act also confers a broad financial assistance power with annual reporting to the House of Commons, and provides for the repeal of the Steel Industry (Special Measures) Act 2025 on a day to be appointed. It received Royal Assent on 15 July 2026 and came into force that day, except the SISMA 2025 repeal.

Key Points

  • Defines 'steel undertaking' as an undertaking whose business consists of or includes manufacturing or processing steel, or iron solely for steelmaking (s.1)
  • Secretary of State may nationalise via share transfer regulations (s.4) or property transfer regulations (s.15), but only if 'necessary... in the public interest' — expressly including defence and national security, critical infrastructure, and supporting the UK economy (s.2)
  • Two-year sunset: the principal transfer powers cannot be exercised more than 2 years after Royal Assent, extendable by affirmative-procedure regulations in steps of up to 2 years (s.3)
  • Transfers carry continuity obligations requiring transferors and group companies to keep providing services and facilities so the transferred business can carry on (ss.33-43), plus pensions provision (s.44)
  • Termination-rights protections stop counterparties treating a transfer as a contractual default (ss.11, 22, 43), and 'detrimental transactions' entered into before a transfer can be addressed (s.46)
  • Compensation is mandatory: the Secretary of State must make compensation scheme regulations for any exercise of a principal transfer power, with an independent valuer determining compensation (Part 2, ss.52-57)
  • Broad financial assistance power (grant, loan, guarantee, indemnity, share or asset acquisition) with annual reports laid before the House of Commons (ss.58-59)
  • Repeals the Steel Industry (Special Measures) Act 2025 — but that repeal only takes effect on a day appointed by regulations (ss.60, 63(2))

Frequently asked questions

What powers does the Steel Industry (Nationalisation) Act 2026 give to the government?
The Act grants the Secretary of State time-limited powers to take steel undertakings into public ownership. This is achieved through two main mechanisms: share transfer regulations, which move securities to the state or a nominee, and property transfer regulations, which transfer property, rights, and liabilities. These powers can only be used if the Secretary of State considers it necessary in the public interest, including for defence, national security, critical infrastructure, or supporting the UK economy.
How long do the nationalisation powers last?
The principal transfer powers are subject to a two-year sunset clause from the date of Royal Assent. This means they cannot be exercised more than two years after the Act received Royal Assent. However, this period can be extended by regulations made under the affirmative procedure, with extensions granted in steps of up to two years.
Is compensation required if a steel company is nationalised?
Yes, compensation is mandatory. The Secretary of State is required to make compensation scheme regulations whenever a principal transfer power is exercised. The amount of compensation is determined by an independent valuer to ensure the process is fair and objective. This requirement is set out in Part 2 of the Act.
What happens to existing contracts if a steel business is transferred to the state?
The Act includes protections to prevent counterparties from treating a nationalisation transfer as a contractual default, thereby stopping them from exercising termination rights. Additionally, it allows for the addressing of 'detrimental transactions' that were entered into before the transfer. These measures help ensure the transferred business can continue operating smoothly without immediate legal disruption from existing contracts.
When did the Act come into force?
The Act received Royal Assent on 15 July 2026 and came into force on that day, with one exception. The provision repealing the Steel Industry (Special Measures) Act 2025 does not take effect immediately. Instead, that specific repeal only takes effect on a day to be appointed by future regulations.