British Steel could be nationalised as fears grow over the future of the company’s blast furnaces in Scunthorpe.
Last month, the company said it would consult with the workforce and unions on the proposed closure of the sites, which would put around 2,700 jobs at risk.
British Steel has said that running the two furnaces in Scunthorpe is “no longer financially sustainable” without government support. Its owner, Chinese company Jingye, said it was enduring financial losses of around £700,000 a day.
Chancellor Rachel Reeves spoke to trade unions at the weekend to reassure them that the steelworks are strategically important to UK industry, and would come under public ownership if necessary.
US president Donald Trump has also just levied a 25% tariff on all American imports of steel and aluminium.
Speaking in the Commons yesterday (8 April), prime minister Keir Starmer said that “all options remain on the table” for British Steel in terms of government support.
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He told the Commons Liaison Committee: “We are doing everything we can to ensure there is a bright future for Scunthorpe.”
The government has already offered £500 million of support to partly fund a switch from blast furnaces to electric arc furnaces, but this was rejected.
Reports suggest that the furnaces can only keep going if vital raw materials are ordered this week.
In a written statement, business minister Sarah Jones said: “Our priority is respecting workers, safeguarding jobs, and retaining steelmaking.
“We have been clear that the best way forward is for British Steel to continue as a commercially-run business with private investment and government acting in support.
“We call upon British Steel to accept our generous offer of financial support, and the associated conditions.
“However, no options are off the table. The government remains resolute in our desire to secure a long-term future for the Scunthorpe steelworks, retaining steel production and putting an end to the years of uncertainty.”
Conservative party leader Kemi Badenoch said that nationalising British Steel must be a “last resort”.
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