Steel Industry (Special Measures) Act 2025: Ensuring the Future of British Steel

The UK government has enacted the Steel Industry (Special Measures) Act 2025, a crucial piece of legislation designed to safeguard the future of the steel industry in England. This Act, which came into force on April 12, 2025, empowers the Secretary of State to ensure the continued and safe use of assets within steel manufacturing businesses, known as "steel undertakings."

Key Highlights of the Act:

1. Definition of Steel Undertaking: The Act defines a "steel undertaking" as any business engaged in the manufacture of steel. This broad definition ensures that all relevant businesses are covered under the new regulations.

2. Government Oversight: The Secretary of State can issue directions to steel undertakings if their assets are underused or at risk of being idle. These directions are aimed at resuming or maintaining the use of these assets in the public interest.

3. Compliance and Control: If a steel undertaking fails to comply with these directions, the Secretary of State has the authority to take control of the assets. This includes entering premises, managing operations, and even appointing new officers to ensure assets are used effectively.

4. Offences and Penalties: Non-compliance with the directions or hindering their implementation can lead to criminal charges. Offenders may face up to two years in prison or fines, highlighting the seriousness of these measures.

5. Legal Protections and Compensation: The Act provides indemnities for actions taken in compliance with its directives, and the Secretary of State can offer compensation for any losses incurred. Additionally, a compensation scheme can be established to support affected businesses.

6. Financial Support: The Act ensures that any expenses incurred by the Secretary of State in executing these powers will be covered by parliamentary funds, ensuring that financial considerations do not hinder the implementation of necessary measures.

7. Scope and Implementation: The Act applies solely to England and Wales and is effective immediately, underscoring the urgent need to address challenges faced by the steel industry.

This legislation represents a proactive approach by the UK government to stabilize and secure the steel industry, vital for the country's economic health and industrial capabilities. By providing a framework for intervention, the Act aims to prevent the decline of this critical sector and protect the livelihoods of those who depend on it.