Expert comment – Nationalisation of British Steel – BCIS chief economist

Dr David Crosthwaite, chief economist at BCIS, said:

Bringing British Steel under public ownership may help secure a strategically important industry, but the cost of doing so is obviously a major concern.

UK steelmakers continue to face some of the highest electricity prices in Europe, while energy market volatility is pushing production costs higher.

For example, fabricated structural steel prices, according to the Department for Business and Trade’s producer price index for the product, rose by more than 8% in the year to March 2026.

The government’s wider steel strategy, including tighter import quotas and 50% tariffs on some overseas steel from July, is intended to support domestic production, but it also risks adding further cost pressure across construction supply chains.

Ministers have already agreed to review the policy following industry concerns over steel availability and project costs.

In the near term, while energy markets and global trade conditions remain unpredictable, maintaining a competitive and secure UK steel industry is likely to require significant government support.

It is crucial this intervention succeeds. Failure would risk undermining both domestic steel production and the wider construction sector.